Chinese technology company Alibaba has initiated legal action against the US Department of Defense following its designation as a firm linked to the Chinese military. The lawsuit, filed in federal court, argues the Pentagon’s decision was “arbitrary and capricious.” Alibaba contends the labeling lacks justification and seeks to challenge its inclusion on the list. The Pentagon’s move potentially restricts US government and contractors from doing business with Alibaba. The company maintains it operates independently and does not support the Chinese military. This legal challenge marks a significant escalation in tensions between the tech giant and the US government. Alibaba communicated the lawsuit filing to AFP on Wednesday.