U.S. District Judge Eumi K. Lee ordered the Pentagon to temporarily shield Alibaba Group from a law that triggered a mass exit of its Washington lobbyists. The Northern District of California ruling prevents the Defense Department from enforcing lobbying restrictions while the court reviews the measure's constitutionality.
The dispute involves Alibaba’s inclusion on a Pentagon list of companies allegedly linked to China’s military. A new law effective June 2026 prohibits the Defense Department from contracting with firms represented by lobbyists who also work for blacklisted entities. This mandate forced lobbying firms to choose between U.S. defense clients and sanctioned Chinese companies like Alibaba and Tencent.
Alibaba filed its lawsuit in June, arguing the military designation is baseless and violates its legal rights. The temporary order remains in effect until a final ruling or 60 days after a hearing on the matter.