Alibaba Sues Pentagon Over China Military Label

The move risks further inflaming tensions between Washington and Beijing, only weeks after President Trump met with Xi Jinping, China’s leader, in an effort to stabilize economic and political relations. Over the past 18 months, the world’s two largest economies have clashed over tariffs, trade and control over critical technology supply chains.

China’s Ministry of Commerce said earlier this month that the Pentagon’s decision had jeopardized the fragile truce reached by the two leaders. The U.S. side had “disregarded the consensus” reached between the two leaders, abused its power and threatened the stability of global supply chains, the ministry said in a statement.

Alibaba, which also named Defense Secretary Pete Hegseth as a defendant in the lawsuit, said the designation had already inflicted significant reputational harm and cost it business partners, including lobbying firms.

The company also argued that the Pentagon had violated its First Amendment rights.

“The designation thus does not merely impose commercial costs — it strips Alibaba of its ability to speak, to petition the government through its chosen representatives,” the lawsuit said.

The Defense Department did not immediately respond to a request for comment.

Alibaba said it is not licensed to supply products to China’s military and it does not participate in Chinese or U.S. military procurement programs.

Article source: https://www.nytimes.com/2026/06/24/business/alibaba-pentagon-lawsuit.html