The U.S. Department of Defense acknowledged Alibaba Group, Baidu, and BYD as military associates of China. Intelligence suggests that Alibaba furnishes data to the PLA, which the firm denies. Against the backdrop of a revenue growth report, Alibaba shares climbed 2% on November 27th.
The United States Department of Defense determined the necessity of including Chinese firms Alibaba Group, Baidu, and BYD on the roster of military partners for China, according to information from the Bloomberg news agency.
In this matter, U.S. Deputy Secretary of Defense Stephen Feinberg shared his viewpoint. He dispatched a letter on October 7th to the chairs of the House and Senate Armed Services Committees of the United States.
By the assessment of American intelligence, Alibaba Group supposedly offers the People’s Liberation Army of China (PLA) technological and informational aid for executing maneuvers targeting sites within the United States. Specifically, the enterprise is accused of transmitting user data to Chinese armed forces, such as IP addresses, Wi-Fi network details, payment records, and other user information. Intelligence asserts that the Chinese military procured intelligence from Alibaba regarding “zero-day vulnerabilities”—flaws or malicious code for which protective measures have not yet been created.
Alibaba refutes the presented accusations. The corporation labeled the findings of American intelligence as “utter nonsense” and accused the administration in Washington of seeking to “sway public sentiment,” endeavoring to tarnish its standing. The company is currently refraining from remarks concerning its potential ties with the PLA.
On November 27th, a Tuesday, Alibaba shares exhibited an increase of 2% following the release of its quarterly statement, which showcased revenues exceeding analysts’ anticipations. In the second quarter, the corporation brought in revenue of 247.80 billion yuan ($35 billion), which surpassed the preliminary forecasts of 242.65 billion yuan.
About the Author
