Chinese e-commerce giant Alibaba has won a preliminary injunction against the US government over restrictions linked to its inclusion on a Pentagon list of companies allegedly aiding China’s military.
A US federal judge on Monday ordered the government not to deny Pentagon contracts to companies because they, their parent companies or subsidiaries do business with firms that lobby on behalf of Alibaba.
The ruling allows Alibaba to retain US lobbyists who also represent Pentagon contractors, removing a potential obstacle to its legal challenge against the military-related designation.
The company sued the US government in June after the Department of Defense added it to a list of Chinese companies allegedly supporting China’s military. Other firms named included search engine provider Baidu, electric vehicle maker BYD and several Chinese technology and manufacturing companies.
Following the Pentagon’s action in June, Alibaba dismissed dozens of its Washington lobbyists, according to a source familiar with the matter.
Although the designation does not impose formal sanctions on Alibaba, it restricts Pentagon contracts involving listed companies. From 2027, the restrictions are also expected to cover purchases of their products or services through third parties, potentially affecting their access to US defence supply chains.
Alibaba has denied having military ties, maintaining that its products and services are designed for retail, logistics and enterprise technology rather than defence or intelligence operations.
In its June lawsuit, the company argued that the US government’s decision had no factual or legal basis and sought to be removed from the list.
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Monday’s injunction, however, does not remove Alibaba from the Pentagon’s list. The company is continuing its legal challenge to the designation.
Alibaba did not immediately respond to a request for comment on the court ruling.
The case is part of a broader legal push by Chinese companies seeking to challenge their inclusion on the Pentagon’s list.
In September, two subsidiaries of BYD, the world’s largest electric vehicle maker, sued the US Department of Defense over a federal law restricting Pentagon contractors from hiring lobbyists who also represent blacklisted companies. The subsidiaries argued that the law violated their First Amendment rights.
In August, drone maker DJI appealed its inclusion on the Pentagon list. An appeals court found merit in its argument that unclassified records did not support the conclusion that it contributed to China’s defence industrial base, ordering a lower court to reconsider its rejection of the company’s bid for removal.
Biotechnology company WuXi AppTec also secured a preliminary injunction from a US federal court in August, blocking its inclusion on the list. The company had described the Pentagon’s designation as politically motivated.
The legal challenges highlight growing tensions between Washington and Chinese companies over national security concerns, access to government contracts and the role of Chinese technology firms in US supply chains.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
