A federal judge just handed Alibaba a win. On Sunday, US District Judge Eumi K. Lee ordered the Pentagon not to treat Alibaba as a Chinese military company — at least for now. The ruling applies specifically to new lobbying restrictions tied to the 1260H entity list.
Alibaba sued the US government after being added to the Pentagon’s 1260H list, arguing the designation had “no basis in fact or law.” The company says it doesn’t work with the Chinese military and that being on the list violates its constitutional right to free speech.
Here’s the issue. A recent legislative change bars federal contracts with any company that hires lobbyists representing a 1260H-listed firm. That means Alibaba lost its ability to hire representation to challenge the government. All two dozen of its registered lobbyists withdrew.
The Pentagon acknowledged a temporary pause would benefit both sides. The judge’s order runs until she resolves Alibaba’s motion — or 60 days after a hearing, whichever comes first.
Meanwhile, House China select committee members John Moolenaar and Elise Stefanik urged Defense Secretary Pete Hegseth to strictly enforce the lobbyist ban. The fight’s not over.
