Judge pauses Pentagon lobbying ban on Alibaba

A federal judge has ordered the Pentagon to temporarily suspend enforcement of a new lobbying restriction against Alibaba Group, granting the Chinese technology giant a reprieve in a closely watched legal battle over U.S. national security measures. The order, issued on Sunday by U.S. District Judge Eumi K. Lee in the Northern District of California, prevents the Department of Defense from treating Alibaba as a Chinese military company for the purposes of the lobbying ban while the court considers the company's constitutional challenge.

The dispute stems from Alibaba's addition to the Pentagon's "Section 1260H" list on June 8, a designation for companies allegedly linked to China's military. The list, which now includes 188 entities, was expanded under the fiscal year 2025 National Defense Authorization Act. A separate provision of that law, Section 851, bars the Pentagon from entering into contracts with any company that employs lobbyists who also represent firms on the 1260H list. This rule took effect in late June, forcing lobbying firms to choose between their defense contracts and their Chinese clients.

The consequences were immediate. More than two dozen registered...