US Judge Issues Order Blocking Pentagon Contractors From Being Deprived Over Alibaba Ties

A US federal judge granted a request by Alibaba Group Holding for a preliminary injunction, barring the US government from depriving companies of Pentagon contracts merely because they, or their parent or subsidiary companies, deal with firms that engage in lobbying activities on behalf of the Chinese e-commerce giant.

Alibaba filed a lawsuit against the US government in June after the Pentagon added it to its list of companies classified as aiding the Chinese military, alongside internet search services provider Baidu, electric vehicle manufacturer BYD, and other major Chinese manufacturing and technology firms.

The ruling issued on Monday means that Alibaba will be able to maintain its dealings with US lobbying firms that also represent Pentagon contractors, removing a potential obstacle to the company's efforts to challenge its classification as a Chinese military company.

This classification does not impose formal sanctions, but it restricts Pentagon contracts with companies listed on the register and also restricts, starting in 2027, the purchase of their products or services through third parties.

Alibaba denies any ties to the military, stating that its products and services are designed for retail sectors, logistics aspects, and enterprise technology, rather than for defense or intelligence purposes.

In the lawsuit filed in June seeking its removal from the list, Alibaba stated: "These decisions are not based on any factual or legal basis."

The issued court order does not result in Alibaba's removal from the Pentagon list, which the company continues to challenge in court regarding its inclusion.

Alibaba has not yet responded to a request for comment from Reuters regarding the court order.