Judge Blocks Pentagon Contract Restrictions Tied to Alibaba Lobbying Relationships

A US federal judge granted Alibaba Group Holding's request for a preliminary injunction, ordering the government not to deny Pentagon contracts to companies because the companies, their parent entities or subsidiaries do business with firms that engage in lobbying for Alibaba. The ruling protects a channel Alibaba is using to challenge its treatment by the US government.

Order addresses lobbying relationships

Monday's injunction means Alibaba can retain US lobbyists who also represent Pentagon contractors. That removes a potential obstacle to Alibaba's effort to contest its designation as a Chinese military company. The order concerns the effect of those lobbying relationships on government contracting; it does not decide all of Alibaba's claims in the underlying case.

Alibaba sued the US government in June after the Pentagon placed it on a list of companies allegedly aiding China's military. The list also included internet search provider Baidu, electric-vehicle maker BYD and other Chinese manufacturing and technology companies.

Listing remains in place

The preliminary injunction does not remove Alibaba from the Pentagon list. The company continues to challenge the designation in court. Alibaba has denied military ties and said its products and services are designed for retail, logistics and enterprise technology rather than defense or intelligence.

The designation does not impose formal sanctions. It does, however, restrict Pentagon contracts with listed companies and, beginning in 2027, purchases of their products or services through third parties. Alibaba said in its lawsuit that the determinations had no basis in fact or law and sought removal from the list.

Limited scope and next steps

The ruling is preliminary, so it preserves Alibaba's lobbying relationships while the litigation continues. It does not establish that Alibaba has been removed from the list, resolve the merits of the alleged military connections or guarantee contracts for the company or its business partners.

Alibaba did not immediately respond to a Reuters request for comment on the injunction. The litigation over its designation continues.

Sources

• Reuters: Alibaba wins injunction against Pentagon contract restrictions tied to China