A court order pauses Pentagon enforcement tied to Alibaba’s Chinese military company designation while a judge weighs the constitutionality of the new lobbying restriction.
Alibaba won a temporary reprieve from a U.S. law that prompted all of its registered lobbyists to drop the company, after a federal judge ordered the Pentagon not to treat it as a Chinese military company for purposes of the lobbying restriction while the court reviews its challenge. US District Judge Eumi K. Lee said the relief will remain in place until she resolves Alibaba’s motion or 60 days after a hearing, whichever comes first. The dispute stems from a measure that bars the Defense Department from working with any company represented by lobbyists who also represent entities blacklisted by the Pentagon for allegedly aiding the Chinese military, effectively forcing firms to choose between sanctioned Chinese companies and U.S. defense contractors. Alibaba was added to the Pentagon’s 1260H list on June 8 and sued on June 23 seeking removal, arguing it does not work with the Chinese military. It followed with a June 30 motion saying the lobbying restriction violates its free speech rights and left it without representation in Washington after more than two dozen registered lobbyists withdrew. Pentagon officials said in a court filing that they believe the restriction complies with the Constitution but agreed to a limited pause while the court considers the issue.