Alibaba wins temporary reprieve from US lobbying ban tied to military blacklist

Alibaba has won a temporary reprieve from a controversial US lobbying restriction tied to the Pentagon's Chinese military blacklist. On July 5, U.S. District Judge Eumi K. Lee ordered the Department of Defense not to treat Alibaba as a Chinese military company with respect to the lobbying provision until she resolves the company's motion or 60 days after a court hearing, whichever comes first. The restriction, part of a new law targeting entities allegedly aiding China's military, forced lobbyists to choose between representing blacklisted Chinese companies and working with US defense contractors. As a result, all of Alibaba's more than two dozen registered lobbyists withdrew their registrations in recent weeks.

The case is set to test the US government's ability to curtail Chinese companies' political activities amid growing Sino-American tensions. Alibaba sued the Pentagon on June 23 seeking removal from the 1260H list, which now includes 188 Chinese military companies across semiconductors, AI, robotics, and drones. The company argues the lobbying restrictions violate its First Amendment rights and have cost it its voice in dealings with the federal government. Pentagon officials maintain the restriction is constitutional but agreed to a temporary pause to allow the court to assess the matter. The outcome could set a precedent for how the US uses its blacklist as a geopolitical tool against Chinese tech giants.