A new White House national security memo has pulled Alibaba into the center of a growing storm, suggesting that the Chinese tech giant has quietly supported military operations targeting the United States. The Financial Times was first to report the memo’s existence, stating that it included declassified top secret intelligence outlining how Alibaba allegedly supplied the People’s Liberation Army with capabilities the administration sees as a threat to U.S. security. The accusations land at a time of rising tension over artificial intelligence, global technology competition and renewed trade friction between Washington and Beijing.
According to the memo, Alibaba has allegedly provided China’s military and government with access to sensitive customer information. The data described in the report includes internet protocol addresses, WiFi information, payment records, details on software vulnerabilities and a range of AI-related services. The memo does not specify what targets inside the United States were involved, how the information may have been used or whether the White House intends to take action.
The Financial Times described the allegations as coming from declassified intelligence but noted it was unable to independently verify the leak. U.S. officials from both the White House and the CIA declined to comment.
If the memo’s allegations are accurate, the data described would be valuable for several types of military and intelligence activity. Payment records and IP addresses can help identify individuals, map networks and track behavior. WiFi information and software vulnerabilities can expose opportunities for cyber intrusion. AI-related services could help enhance espionage tools, assist with pattern analysis or support automated targeting systems. None of this was confirmed by U.S. officials, but the nature of the data listed in the memo aligns with common cyber-intelligence techniques.
The broader context is Washington’s fear that Chinese technology firms are enmeshed with Beijing’s security apparatus. Companies like Huawei and ByteDance have already faced intense scrutiny. Lawmakers have long argued that firms headquartered in China are vulnerable to government pressure and could be compelled to hand over data or support military operations.
Alibaba’s Response
Alibaba has firmly rejected the allegations. In a statement, the company called the claims “completely false,” describing the memo as a “malicious PR operation” driven by a “rogue voice looking to undermine President Trump’s recent trade deal with China.” The company also questioned why the Financial Times published material it acknowledged it could not independently verify. Alibaba did not respond to a follow-up request about its relationship with the PLA.
Chinese officials also pushed back. The Chinese Embassy in Washington accused the United States of a “distortion of facts,” insisting that Beijing respects and protects personal data in accordance with Chinese law. Embassy spokesperson Liu Pengyu went further, calling the allegations “extremely irresponsible” and saying China firmly opposes them. The Ministry of Foreign Affairs added that Beijing consistently fights hacking rather than enabling it.
The memo arrives at a moment when distrust of Chinese technology companies is at a peak. Huawei remains blacklisted. TikTok faces the looming threat of an American ban unless its parent company ByteDance divests U.S. operations. Alibaba itself has come under repeated scrutiny from lawmakers. Some have warned that even its partnership with the International Olympic Committee could pose risks for the 2028 Los Angeles Games. Earlier this year, House committee chairs John Moolenaar and Andrew Gabarino argued that Alibaba acts as a “critical enabler” of Chinese intelligence activity and urged the SEC to delist the company from U.S. exchanges.
The news also broke one day after AI firm Anthropic revealed it had disrupted what it described as the first largely autonomous cyberespionage campaign, which it said was tied to a Chinese state sponsored group. That timing intensified speculation in Washington about how China may be incorporating artificial intelligence into its intelligence operations.
For now, the White House is refusing public comment. Beijing is denying everything. Alibaba is calling the allegations nonsense. And the world is left with one more reminder that technology is no longer just about commerce. It is about strategy, power and who controls the most valuable resource of the twenty first century: data.
ACZ Editor: The Trump Administration is on the right track, any access China has to data on American citizens will be used against us. And it is indeed powerful information.