Alibaba Denies White House Claims of Military Support Against US

Alibaba Rejects Allegations of Military Support

Chinese technology giant Alibaba Group has strongly denied a recent report claiming it provides technological support for Chinese military operations directed against US targets. The denial comes in response to an article published by the Financial Times, which cited a White House memo containing declassified top-secret intelligence.

An Alibaba Group spokesperson stated that 'the assertions and innuendos in the article are completely false,' and further described the memo as a 'malicious PR operation' intended to undermine President Trump's recent trade deal with China.

Details of the White House Memo's Claims

According to the Financial Times report, the White House memo alleged that Alibaba supplied the People's Liberation Army (PLA) with various capabilities that Washington believes pose a direct threat to US security.

• Sensitive Customer Data: This reportedly included access to IP addresses, WiFi data, and payment records.
• AI Tools and Cyber Capabilities: Alibaba was accused of providing advanced artificial intelligence tools and cyber capabilities.
• Software Vulnerabilities: The memo also claimed that some Alibaba employees passed on information regarding previously unknown software vulnerabilities, which US officials argued could give the Chinese military an advantage in cyber operations.

While the Financial Times noted it could not independently verify every detail of the claims, US officials indicated that these allegations align with broader concerns in Washington regarding the reach of Chinese cloud and AI companies.

Official Responses and Broader Context

Beyond Alibaba's immediate denial, the Chinese embassy in Washington also strongly refuted the claims. Embassy spokesperson Liu Pengyu stated that the allegations were a 'complete distortion of facts' and that China 'will never require companies or individuals to collect or provide data located in foreign countries in violation of local laws.'

The dispute underscores the ongoing suspicions and intense competition for technological superiority between Beijing and Washington. This development follows a period where US President Donald Trump reignited a trade war with China, which was later followed by a one-year truce.

Market Reaction and Potential Future Implications

Following the report, Alibaba's US-listed shares experienced a decline of 4.2%.

The long-term impact of these allegations could depend on potential actions by the US government. Analysts suggest that the memo's significance hinges on whether the US Department of Defense formally lists Alibaba under Section 1260H, a designation for firms tied to China's military. Such a listing could affect Alibaba's reputation and lead to future restrictions. Further complications could arise if Alibaba were to be placed on the US Department of the Treasury's Non-SDN Chinese Military-Industrial Complex (NS-CMIC) investment ban list or the US Department of Commerce's Entity List.