Alibaba gets reprieve on lobbying ban tied to DoD blacklist

A federal judge ordered the Pentagon to give Alibaba Group Holding Ltd. a reprieve from a law that caused all of its lobbyists to drop it as a client while she considers the constitutionality of the measure, in a case set to test the US’s ability to curtail Chinese companies’ activities. Washington’s most powerful lobbying firms rushed to sever ties with Alibaba and other Chinese tech giants after a new law targeting entities allegedly aiding China’s military took effect last week, Bloomberg News previously reported.

The restriction bars the Defense Department from working with any company represented by lobbyists who also work for entities blacklisted by the Pentagon for allegedly aiding the Chinese People’s Liberation Army. In practice, the provision forced lobbyists to choose between the sanctioned Chinese companies and US defense contractors, causing them to abandon the former. US District Judge Eumi K.

Lee, who is overseeing a lawsuit by Alibaba challenging its inclusion on the list, on Sunday ordered the Pentagon not to treat Alibaba as a Chinese military company with respect to the lobbying restriction until she resolves the company’s motion on the matter or 60 days after a court hearing on it, whichever comes first. The case will likely be closely watched as the Pentagon’s blacklist has emerged as a prominent tool for the US in its rivalry with China. On June 8, the Pentagon added Alibaba to its roster of Chinese military companies operating in the US known as the 1260H list, bringing the total number of designated Chinese military companies to 188 from 20 named under a preceding statute a few years ago.

The roster spans key sectors including semiconductors, artificial intelligence, robotics and drones Alibaba on June 23 sued the department seeking its removal from the blacklist, saying it doesn’t work with the Chinese military, followed by a June 30 motion for relief from the lobbying restrictions linked to the list the day they took effect. Read More: Alib