Why Alibaba is suing US government

Why Alibaba is suing US government

Chinese tech and e-commerce giant Alibaba has sued the US government after being added to a Pentagon blacklist of companies allegedly linked to China's military.

The lawsuit, filed in a federal court in San Jose, California on Tuesday, seeks to overturn the Department of Defense's (DoD) decision.

The designation could limit Alibaba's access to US government-related business and damage its reputation among American partners.

Alibaba not part of China's military, says company

Alibaba has challenged the Pentagon's classification, saying it "has no basis in fact or law."

The company has denied any military connections, stressing that its businesses focus on retail, logistics, cloud computing and enterprise technology services.

"Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," a company spokesperson said while announcing their legal battle to get off the blacklist.

Lawsuit comes after Pentagon expanded blacklist of Chinese companies

The dispute stems from the Pentagon's recent decision to expand its list of companies allegedly linked to China's military.

The updated list includes 188 Chinese companies, up from 134 last year, amid growing US concerns that Beijing could exploit private-sector innovation for military ends.

Although being on the list doesn't automatically trigger sanctions or asset freezes, it has serious implications for blacklisted companies like Alibaba.