Alibaba Sues Pentagon to Be Removed From Military-Links Blacklist

Alibaba has filed a lawsuit against the U.S. Department of Defense, seeking to be removed from a blacklist of Chinese companies accused of ties to the Chinese military. The company called the Pentagon’s decision “arbitrary and capricious” and said it has no military links or strategy for civil-military technology integration.

The Pentagon updated the list earlier this month and added about two dozen Chinese firms, including Alibaba, Baidu and BYD. Being on the list restricts those companies’ operations in the United States, especially in the security sector, although the impact on Alibaba and Baidu is relatively limited because they have little business exposure to the Pentagon.

Alibaba, Baidu and several other companies protested the designation and said they were exploring options to have it removed. Alibaba filed its suit on Tuesday in federal court in California, arguing that it was blacklisted without meaningful evidence or adequate explanation and that the move violated constitutional rights including due process and free speech.

The company said it had spent months trying to resolve the matter with the Pentagon after the updated blacklist briefly surfaced in February and was then removed minutes later. Alibaba said it submitted detailed evidence, answered questions and provided written responses showing it does not support the Chinese military, but the Pentagon did not respond. Alibaba also said its board is independent and that it develops retail, logistics and information technology products and services, not weapons, defense or intelligence.