A federal judge has temporarily prevented the US Department of Defense from enforcing new lobbying restrictions against Alibaba Group Holding Ltd., giving the Chinese technology giant temporary relief while the court examines whether the measure complies with the US Constitution.
The ruling comes as Alibaba continues its legal effort to overturn its designation as a Chinese military company, a label that has significantly affected its ability to engage with the US government.
Court Grants Temporary Protection During Constitutional Review
US District Judge Eumi K. Lee issued the order on Sunday, directing the Pentagon not to treat Alibaba as a designated Chinese military company for purposes of the new lobbying restrictions while the court considers the company’s request for relief.
The protection will remain in effect until the judge rules on Alibaba’s motion or until 60 days after a hearing on the matter, whichever occurs first.
The temporary order does not remove Alibaba from the Pentagon’s blacklist but suspends the impact of one of the law’s most immediate consequences as litigation proceeds.
New Law Forced Lobbyists to Cut Ties With Chinese Firms
The dispute centers on legislation that took effect last week targeting companies identified by the Pentagon as supporting China’s military.
Under the law, the Defense Department is prohibited from working with companies represented by lobbying firms that also represent businesses listed by the Pentagon as Chinese military companies.
The provision effectively forced lobbying firms to choose between maintaining relationships with US defense contractors or continuing to represent blacklisted Chinese companies.
Following the law’s implementation, many of Washington’s leading lobbying firms reportedly ended their relationships with Alibaba and several other Chinese technology companies.
Alibaba Says It Lost Its Voice in Washington
Alibaba filed suit against the Defense Department on June 23, seeking to be removed from the Pentagon’s blacklist after being added to the list on June 8.
The company followed up with a separate request for emergency relief on June 30, the same day the lobbying restrictions came into force.
In court filings, Alibaba argued that the restrictions infringe upon its constitutional right to free speech by preventing it from communicating effectively with the federal government on legislation, regulatory issues, and policies affecting its business operations.
The company also stated that every one of its more than two dozen registered lobbyists withdrew their representation after the new restrictions became effective, leaving it without established representation in Washington.
Pentagon Defends the Law While Accepting Temporary Pause
Although the Defense Department agreed to the temporary arrangement, it continues to defend the legality of the lobbying restrictions.
In a joint filing submitted to the court, Pentagon officials maintained that the measure is fully consistent with the US Constitution.
However, they acknowledged that temporarily suspending enforcement against Alibaba would allow the court sufficient time to evaluate the constitutional questions raised by the lawsuit.
The Defense Department declined to comment further, citing the ongoing litigation, while Alibaba did not immediately respond to requests for additional comment.
Pentagon Blacklist Plays Expanding Role in US-China Competition
The legal challenge is expected to draw significant attention because it tests one of Washington’s key tools for restricting the activities of Chinese companies operating in the United States.
The Pentagon’s so-called 1260H list identifies companies that the department alleges have ties to the Chinese People’s Liberation Army.
Since its expansion in June, the list has grown to 188 companies, a substantial increase from the 20 businesses designated under an earlier version of the law.
The companies span several strategically important industries, including semiconductors, artificial intelligence, robotics, and drone technology.
Lawmakers Push for Strict Enforcement
The lobbying restrictions have received strong backing from congressional leaders focused on national security and US-China relations.
House Select Committee on China Chairman John Moolenaar and House Intelligence Committee member Elise Stefanik recently urged Defense Secretary Pete Hegseth to rigorously enforce the new provisions.
In a letter to the Pentagon, the lawmakers argued that defense contractors should avoid working with lobbying firms that simultaneously represent companies they believe advance the military objectives of the Chinese Communist Party.
The outcome of Alibaba’s lawsuit could influence how aggressively the Pentagon can enforce similar restrictions against other Chinese companies designated under its expanding military blacklist.
