A US federal judge has granted Alibaba Group Holding a preliminary injunction preventing the government from denying Pentagon contracts to companies solely because they, their parent companies or subsidiaries do business with firms that lobby on behalf of the Chinese e-commerce and technology group.
The ruling gives Alibaba temporary relief from one of the consequences linked to its inclusion on a Pentagon list of companies alleged to have ties to China’s military.
Alibaba remains on the list and is continuing its separate legal challenge seeking removal from the designation.
FCRF’s Chief AI Officer Certification Returns on November 14 to Prepare Future AI Leaders
Injunction Eases Lobbying Restrictions
The ruling means Alibaba can continue working with US lobbyists who also represent Pentagon contractors.
The restriction had created a potential obstacle for the company because firms working with Alibaba could have faced consequences in their dealings with the US Department of Defense.
Alibaba had reportedly dismissed dozens of Washington lobbyists after the Pentagon added it to the list in June.
The designation itself does not impose formal sanctions, but it limits Pentagon contracting with listed companies and is set to restrict purchases of their products or services through third parties from 2027.
Alibaba Denies Military Links
Alibaba sued the US government in June after it was added to the Pentagon list alongside companies including Baidu and BYD.
The company has denied having military ties and has said its products and services are focused on retail, logistics and enterprise technology rather than defence or intelligence.
In its lawsuit, Alibaba argued that the designation lacked a factual and legal basis and sought to have its name removed from the list.
The preliminary injunction does not resolve that wider challenge and does not remove Alibaba from the Pentagon list.
Other Chinese Companies Also Challenge Designations
Alibaba is one of several Chinese companies that have taken legal action over Pentagon restrictions.
Two subsidiaries of BYD sued the US Department of Defense over a federal law preventing Pentagon contractors from employing lobbyists who also represent blacklisted companies, arguing that the restriction violated constitutional rights.
Drone maker DJI has also challenged its inclusion on the list. An appeals court ordered a lower court to reconsider the case after finding merit in DJI’s argument that unclassified records did not support the conclusion that it contributed to China’s defence industrial base.
Biotechnology company WuXi AppTec also secured a preliminary injunction in August blocking its inclusion on the list.
The Alibaba case will now continue as the company seeks broader relief from the Pentagon designation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
