A US federal judge has ordered the Pentagon to temporarily stop treating Alibaba as a Chinese military company under new lobbying restrictions as the court considers the law’s constitutionality [1, 2, 3, 4, 5].
The Pentagon added Alibaba to its 1260H list of Chinese military companies operating in the US on June 8, 2026. The list includes 188 companies allegedly aiding the Chinese People’s Liberation Army, barring the Defense Department from contracting with lobbyists who also represent listed companies [1, 2, 4, 5].
Following the designation, all of Alibaba’s lobbyists dropped the company as a client starting in late June 2026 due to the lobbying ban, which the company challenged in court [1, 3, 5]. Alibaba sued the Department of Defense on June 23 seeking removal from the blacklist, then filed a motion on June 30 for relief from the lobbying restrictions that took effect that day [1, 2, 4, 5].
Alibaba argues the restrictions violate its constitutional free speech rights and cause it to lose "its voice across the whole of its dealings with the federal government — on legislation, on regulation, on the policies that shape its business," according to its legal filing [1]. An Alibaba spokesperson said, "We are pleased that, for purposes of the lobbyist-contracting ban, Alibaba will not be treated as a Chinese military company and will have proper channels to communicate our views and address concerns" [3].
Judge Eumi K. Lee, overseeing the lawsuit, ordered on July 5 or 6 that the Pentagon grant Alibaba a temporary reprieve from the lobbying ban until she resolves the motions or 60 days after a hearing, whichever is sooner [1, 2, 3, 4, 5]. The Pentagon acknowledged the benefits of the limited stipulation in allowing the court to assess the complaint [5].
The Pentagon’s blacklist has expanded in recent years, with the 1260H list now covering sectors such as semiconductors, AI, robotics, and drones [1, 2, 4]. US House China select committee members emphasized the importance of preventing contractors from partnering with firms tied to Chinese military ambitions [5].
