White House Memo Links Alibaba to Chinese Military Targeting US

A White House memo has accused Alibaba of helping the Chinese military target the United States, according to a report published Friday by the Financial Times. The FT said it could not independently verify the document, nor did it release the memo in full. The White House did not comment.

Alibaba issued a sharp rebuttal, calling the allegations “completely false” and questioning the motives behind the anonymous leak. The company said the claims appear designed to undermine President Trump’s recent trade deal with China, which includes a 12-month rollback of tariffs and export controls.

Some analysts agree the timing raises questions. Andy Rothman of Sinology said the lack of detail suggests the memo may have been leaked by China hawks within the administration seeking to disrupt the new U.S.–China agreement. He also noted that Trump himself has made no public comment on the report.

The FT story triggered market anxiety. Alibaba’s U.S.-listed shares fell 3.78% on Friday before recovering more than 1% in Hong Kong on Monday. Kyle Chan of Brookings said the sharp reaction highlights concerns within China’s AI sector about potential new U.S. sanctions, especially as Washington continues tightening controls on advanced semiconductor access.

Chan also pointed out that Alibaba’s open-source Qwen AI model has been gaining traction in Silicon Valley, posing competitive pressure on paid U.S. models like those from OpenAI and Anthropic, at a time when investors worry about an AI market bubble.

Alibaba is scheduled to release quarterly earnings on Nov. 25, with investors likely watching for any fallout from the controversy.