Focus on the BIG picture.
Saturday, Nov 15, 2025
Outside the box.
White House Issues Memo Accusing Alibaba of Aiding Chinese Military Targeting the U.S.
Allegations in declassified national-security memo link Alibaba to the People’s Liberation Army’s operations against U.S. interests
The White House has flagged a national-security concern alleging that Alibaba Group Holding Ltd. provided technological support to the Chinese military’s operations targeting the United States, according to a memo cited by the Financial Times.
The memo reportedly draws on declassified intelligence which U.S. officials believe shows Alibaba enabled the People's Liberation Army (PLA) to build capabilities that threaten U.S. security.
The document does not specify exactly which technologies or operations were involved, or whether the United States will take further action in response.
Following publication of the memo, Alibaba’s U.S.-traded stock price dropped by 4.2 per cent.
Alibaba issued a statement calling the allegations “completely false” and described the leak as a malicious attempt to undermine the recent trade deal brokered by Donald Trump.
The Chinese embassy in Washington similarly dismissed the claims as irresponsible and a distortion of facts.
The case comes amid heightened scrutiny of Chinese firms’ ties to the military under Beijing’s “military-civil fusion” framework, which U.S. officials view as a channel for civilian companies to feed PLA capabilities.
In May this year, U.S. lawmakers had urged the U.S. Securities and Exchange Commission (SEC) to delist several Chinese companies—including Alibaba—over alleged military links.
While the White House has not indicated immediate sanctions or regulatory steps, the memo signals an intensification of U.S. concerns over Chinese technology firms’ roles in strategic competition.
Alibaba has asserted that it will cooperate with investigations, but warned of serious reputational and trade-impact consequences.
For now, U.S. and Chinese officials are publicly sparring over whether the allegations represent substantiated intelligence or a politically motivated leak.
The record of Alibaba’s relationship with Beijing remains complex: the company has publicly emphasized its commercial independence, yet U.S. regulators and congressional observers continue to view major Chinese technology firms through the lens of national-security risk.
This latest development may prompt further regulatory review by the SEC and executive-branch agencies, and could carry consequences for U.S.–China trade and technology diplomacy.
The memo reportedly draws on declassified intelligence which U.S. officials believe shows Alibaba enabled the People's Liberation Army (PLA) to build capabilities that threaten U.S. security.
The document does not specify exactly which technologies or operations were involved, or whether the United States will take further action in response.
Following publication of the memo, Alibaba’s U.S.-traded stock price dropped by 4.2 per cent.
Alibaba issued a statement calling the allegations “completely false” and described the leak as a malicious attempt to undermine the recent trade deal brokered by Donald Trump.
The Chinese embassy in Washington similarly dismissed the claims as irresponsible and a distortion of facts.
The case comes amid heightened scrutiny of Chinese firms’ ties to the military under Beijing’s “military-civil fusion” framework, which U.S. officials view as a channel for civilian companies to feed PLA capabilities.
In May this year, U.S. lawmakers had urged the U.S. Securities and Exchange Commission (SEC) to delist several Chinese companies—including Alibaba—over alleged military links.
While the White House has not indicated immediate sanctions or regulatory steps, the memo signals an intensification of U.S. concerns over Chinese technology firms’ roles in strategic competition.
Alibaba has asserted that it will cooperate with investigations, but warned of serious reputational and trade-impact consequences.
For now, U.S. and Chinese officials are publicly sparring over whether the allegations represent substantiated intelligence or a politically motivated leak.
The record of Alibaba’s relationship with Beijing remains complex: the company has publicly emphasized its commercial independence, yet U.S. regulators and congressional observers continue to view major Chinese technology firms through the lens of national-security risk.
This latest development may prompt further regulatory review by the SEC and executive-branch agencies, and could carry consequences for U.S.–China trade and technology diplomacy.
