Alibaba Files Lawsuit Against Pentagon Seeking Removal From Military List — Update

By Tracy Qu

Alibaba Group filed a lawsuit against the U.S. Department of Defense in a San Jose federal court on Tuesday, seeking to be removed from a list of companies with alleged ties to China's military.

In a statement Wednesday, an Alibaba spokesperson denied any links to the Chinese military or military-civil fusion strategies, calling the Pentagon's decision "arbitrary and capricious."

The Pentagon said in an email response that it doesn't comment on ongoing litigation.

Earlier this month, the Pentagon updated its list of Chinese businesses identified as aiding Beijing's military. The list was expanded to include about two dozen new companies, including Alibaba and Baidu, a move that limits their operations in the U.S.

At the time, Alibaba, Baidu and several other firms disputed their inclusion on the list and said they were weighing options to get removed from it.

While inclusion on the list can limit a company's ability to operate in the U.S., Citi analysts noted that the impact on Alibaba and Baidu may be limited, as neither firm has direct business exposure to the Defense Department.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

June 24, 2026 00:37 ET (04:37 GMT)