Alibaba sues the Pentagon to get off its Chinese military companies list


Alibaba has taken the US Department of Defense to court over a label the company insists it does not deserve. In a complaint filed on Tuesday in the federal court in San Jose, California, the Hangzhou group asked a judge to strike its name from the Pentagon’s list of “Chinese military companies” and declared the designation, in its own words, to have “no basis in fact or law.”

The list in question is the one maintained under Section 1260H of the 2021 National Defense Authorization Act, which requires the Pentagon to name Chinese firms it judges to have direct or indirect ties to the People’s Liberation Army.

Alibaba was added on June 8, alongside Baidu, BYD, the robotics maker Unitree, and others, in an update that pushed the roster to 188 entities, up from 134 the year before.

In its filing, Alibaba argued that it is governed by an independent board, none of whom has any military affiliation, and that its products and services are built “for retail, logistics, and enterprise information technology, not weapons, defense, or intelligence.”

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The Pentagon’s justification, set out in a June statement, was that the company is “a military-civil fusion contributor to the Chinese defense industrial base” through its affiliation with China’s Ministry of Industry and Information Technology, with an indirect link to the state asset regulator known as SASAC.

The designation does not, by itself, ban anyone from doing business with Alibaba. What it does is layer on consequences.

Under the relevant law, the Defense Department cannot enter into or renew contracts directly with listed entities from June 30, and from 2027 it cannot buy their goods or services through third parties either.

Government contracts are prized by technology firms, and the company told the court that the listing creates barriers to financing, sourcing, and partnerships with American counterparties, reducing its access to capital and raising its risk profile. It also claimed the move violates its constitutional rights to due process and free speech.

Alibaba had signalled it would fight. When the June update appeared, a company spokesperson said it was “not a Chinese military company nor part of any military-civil fusion strategy” and promised to “take all available legal action.” China’s embassy in Washington called the designations “discriminatory.”

It is not the only listed firm to reach for a lawyer. WuXi AppTec, the biotech contract research group added in the same round, filed a similar suit on June 11.

Earlier rounds drew the same complaint without the litigation: when Tencent was added in January 2025, it called its inclusion “a mistake.” The Pentagon is not required to publish evidence. The criteria turn on military-civil fusion, broad enough to sweep in companies whose main business is consumer technology.

That breadth is part of why the list has become a recurring headache for the Chinese tech sector. It sits alongside export controls on chipmaking equipment, tariffs, and the Entity List run by the Commerce Department’s Bureau of Industry and Security, the same bureau now at the centre of a separate fight over access to advanced AI models.

For Alibaba, whose cloud division underpins much of China’s AI infrastructure and whose US footprint spans cloud, advertising, and research, the designation turns every American business relationship into a compliance calculation.

The timing did Beijing no favours. The June update landed during a fragile trade truce, and a day before Alibaba sued, China added 10 US firms to its own export control list. The two governments keep escalating in parallel while insisting they are talking.

What happens next is a matter for the court in San Jose, where Alibaba and WuXi will press their cases. The Defense Department has not commented.

The contracting bans take effect at the end of the month regardless, which means the practical clock and the legal one are running at different speeds. Alibaba is asking a judge to stop both.



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Meta stripped NameTag facial recognition code from its AI app one day after WIRED exposed it on 50 million phones. Meta says no decision has been made.

Meta removed nearly all traces of an unreleased facial recognition system from its smart glasses companion app on Friday, one day after WIRED reported that the software had been quietly embedded in an app installed on more than 50 million phones. The feature, which Meta internally called NameTag, was designed to convert faces captured by the company’s Ray-Ban smart glasses into unique biometric signatures and compare them against a database stored on the user’s device. WIRED also found that faces the system failed to recognise were cropped, indexed, and stored locally for future processing.

Andy Stone, Meta’s vice president of communications, told WIRED on Monday that the feature is “purely exploratory,” adding that no final decision has been made on what to do with it. That characterisation sits uneasily with the evidence WIRED documented. The version of Meta AI published the day of WIRED’s Thursday report contained several code libraries explicitly named for face recognition, a process for running the NameTag recognition pipeline, and a “Person recognised” alert the app would have shown if someone were identified.

Friday’s release stripped all of it out, along with a folder where the app would have stored the cropped images and biometric signatures of unrecognised faces. Meta did not answer WIRED’s questions about why the code was removed or whether the changes were planned before the story was published. A few fragments remain in the latest version, including an internal debug menu label and a dormant link meant to open a recognised person’s profile, pointing to parts of the system that are no longer there.

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The gap between Meta’s public statements and the code WIRED found is the central tension. Before the Thursday report, Stone dismissed the findings by writing that the company could not answer questions about how the system would work because “the feature does not exist.” Andrew Bosworth, Meta’s chief technology officer, called the reporting “incredibly misleading” and “absolutely dishonest.” Yet the code was functional enough to include three AI models, one to detect faces, another to crop them, and a third to encode them as biometric data, all embedded in the companion app for a product already at the centre of a mounting privacy crisis.

Meta declined to answer ten questions WIRED posed before publishing, including whether it had already created the database of face profiles NameTag uses, how long the app retains photographs and biometric data of unrecognised people, and whether that data would ever be sent back to Meta’s servers. The company also did not respond to questions about whether it was building NameTag for blind or low-vision users, or to criticism from privacy advocates who warned the system could let stalkers and abusers identify strangers in public.

NameTag first surfaced in February, when The New York Times, citing internal Meta documents, reported that the company was developing face recognition for its smart glasses and considering a launch as early as this year. One internal memo reportedly described releasing the feature during a “dynamic political environment” when privacy and civil liberties advocates would be distracted by other concerns. WIRED subsequently found that much of NameTag’s machinery had been built into the Meta AI app as early as January, months before any public acknowledgement, adding another layer to the company’s pattern of shipping first and disclosing later when it comes to its smart glasses.

Kade Crockford, director of the technology for liberty programme at the American Civil Liberties Union of Massachusetts, said the removal does not undo the original decision to ship the code and pointed to it as evidence that consumer privacy needs stronger legal protection than Congress has been willing to provide. The Massachusetts House of Representatives last week unanimously passed a consumer privacy bill that, if enacted as written, would impose strong enforcement provisions including a private right of action allowing aggrieved users to sue. “State lawmakers need to do their job and step up to protect consumer privacy,” Crockford said.

Meta’s sneaky tactics in slipping the face-recognition code into its smart glasses show exactly why data privacy bills need the teeth of strong enforcement,” Crockford added. “Companies like Meta prioritise their bottom line, so lawmakers need to speak in the only language its C-suite understands.” Whether a code removal prompted by investigative reporting constitutes a victory or merely a tactical retreat depends on what Meta does next, and on whether the regulatory pressure building on both sides of the Atlantic produces enforceable consequences before the feature quietly returns under a different name.



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