The Alibaba Group (BABA-W) has issued an announcement stating that it has noted the U.S. Department of Defense has included the company on its list of Chinese military companies. According to U.S. regulations, the Department of Defense is prohibited from procuring goods, services, or technology, either directly or indirectly, from entities on this list. The company believes its inclusion on this list is erroneous and asserts there is no factual basis for it. Alibaba Group is not a Chinese military company and does not participate in any military-civil fusion strategy. The company has stated it will take all feasible legal actions against any attempts to distort its image.
Being placed on this list is not expected to impact the group's normal business operations in the United States or globally, as its business is unrelated to U.S. military procurement. The listing itself does not impose additional export controls or sanctions, nor does it prohibit any party, aside from the U.S. Department of Defense, from conducting business with the group or trading its securities.
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