A federal judge ordered the Pentagon to temporarily cease enforcement of a new lobbying restriction against Alibaba Group Holding Ltd., providing a reprieve for the Chinese e-commerce conglomerate while the court examines the law's constitutional basis. The ruling by U.S. District Judge Eumi K. Lee stops the Department of Defense from treating Alibaba as a Chinese military company for the purpose of the lobbying ban, which took effect last week and caused all of the firm's registered lobbyists to sever ties.
K Street Abandons Beijing
The contested provision bars the Pentagon from contracting with any company represented by lobbyists who also work for entities on the 1260H list—the Pentagon's roster of firms allegedly aiding the Chinese People's Liberation Army. In practice, the rule forced Washington's most powerful lobbying firms to choose between sanctioned Chinese technology companies and their existing stable of U.S. defense contractors. Alibaba stated in court filings that more than two dozen registered lobbyists withdrew their registrations, leaving the company without a voice in federal policy debates that directly shape its U.S. business operations. The loss of representation underscores the sweeping reach of a blacklist that now spans 188 Chinese entities across semiconductors, artificial intelligence, robotics, and drones—sectors central to the economic rivalry between Washington and Beijing.
Speech Claims and National Security Posture
Alibaba sued the Pentagon on June 23, arguing it has no ties to the Chinese military and seeking removal from the blacklist. The company claims the lobbying restriction violates its First Amendment rights, effectively silencing its ability to engage with lawmakers and regulators on legislation, regulation, and policy. House China select committee chief John Moolenaar and Representative Elise Stefanik urged strict enforcement, writing to Defense Secretary Pete Hegseth that contractors must avoid partnerships that "advance the interests of companies executing the military ambitions of the Chinese Communist Party."
The Pentagon, while maintaining the restriction is constitutional, agreed to a limited stipulation to allow the court time to assess the matter. The temporary order remains in effect until the judge resolves Alibaba's motion or 60 days after a hearing, whichever comes first. The outcome will signal how far the U.S. government can curtail the domestic political activities of Chinese firms as both nations jockey for technological and industrial primacy. American workers and defense manufacturers stand at the center of this dispute, which tests whether legislative tools designed to protect national security can withstand judicial scrutiny without crippling the representative process for foreign commercial entities operating on U.S. soil.