The Biden administration is intensifying scrutiny of Chinese technology firms after a newly surfaced White House memo accused Alibaba of quietly aiding China’s military and intelligence apparatus. According to the Financial Times, the memo — based on declassified excerpts from top-secret intelligence — alleges that Alibaba has supplied the People’s Liberation Army with access to sensitive user data, artificial intelligence tools, and cyber-related insights that could be weaponised against US interests. Senior officials who reviewed the document described the pattern of activity as deeply concerning, arguing it reinforces long-standing fears that major Chinese tech companies are intertwined with Beijing’s strategic objectives.
The memo outlines allegations that Alibaba provided the PLA with IP address information, WiFi metadata, payment-processing records, and AI-linked analytics services. It further claims that certain Alibaba employees passed along details of undisclosed software vulnerabilities — “zero-day” flaws that could be exploited in cyberattacks. While officials cautioned that they could not independently confirm every item listed in the memo, they said the information aligns with broader intelligence showing that Chinese cloud and AI providers are routinely pressed into national-security roles by the state.
“These are not theoretical risks,” one US official told the FT. “We are dealing with cyber intrusions every day from actors who use infrastructure tied to untrusted vendors. We take these threats extremely seriously.”
Alibaba has forcefully rejected the allegations. In a sharp statement, the company said the claims were “completely false,” accusing unnamed sources of attempting to sabotage the recent thaw between Washington and Beijing following President Trump’s new trade agreement with China. Alibaba characterised the story as a politically motivated attack built on unverifiable leaks.
China’s government also denounced the claims. Liu Pengyu, spokesperson for the Chinese embassy in Washington, accused the US of irresponsibly spreading misinformation without any evidence. He called the allegations “groundless,” insisting that China opposes cyber intrusion and does not force private companies to engage in espionage.
The White House refused to comment publicly, but lawmakers are already using the memo to push for harsher restrictions on Chinese cloud providers and AI firms operating in the US. The episode is expected to fuel mounting bipartisan pressure for new legislative action targeting Chinese technology, data-sharing practices, and military-linked supply chains.
