WASHINGTON - Alibaba filed a federal lawsuit against the US Defense Department, challenging its addition to a list of companies with ties to the Chinese military. The lawsuit, filed in San Jose federal court, argues the designation is 'arbitrary and capricious.'
Alibaba denies any military connection. The company said it is a publicly traded e-commerce and cloud-services provider. Beginning June 30, the Pentagon cannot enter new contracts with designated firms, and the blacklist restricts lobbying in the U.S. Alibaba claims that advocates who represented the firm have already discontinued services, violating First Amendment rights.
Alibaba highlighted that major U.S. financial institutions, including JPMorgan, Citigroup, and BlackRock, are among its largest shareholders.
China retaliated on Monday, imposing export controls on 10 U.S. defense and rare earths mining companies.