ET 05:33

Alibaba Wins Preliminary Injunction Against Pentagon Lobbying Restrictions Tied to China Blacklist

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A U.S. federal judge on Monday granted Alibaba Group Holding's request for a preliminary injunction, barring the government from denying Pentagon contracts to companies because they or their affiliates do business with firms lobbying for the e-commerce giant. The ruling allows Alibaba to retain U.S. lobbyists who also represent Pentagon contractors, removing an obstacle to its challenge of the Pentagon's June designation of the company as allegedly aiding China's military. Alibaba fired dozens of its Washington lobbyists after the listing, according to a source familiar with the matter. The designation imposes no formal sanctions but restricts Pentagon contracts with listed firms and, from 2027, third-party purchases of their products. Alibaba, which denies military ties, sued in June calling the determination without basis in fact or law. The injunction does not remove Alibaba from the list, which it continues to contest in court. BYD subsidiaries, DJI and WuXi AppTec have pursued similar legal challenges.

ByTicklex Editorial