Alibaba secures injunction over Pentagon contract restrictions linked to China blacklist
A U.S. federal judge grants Alibaba Group Holding a preliminary injunction that blocks the government from denying Pentagon contracts to companies tied to the e-commerce group through lobbying relationships. The order eases an immediate constraint on Alibaba's U.S. advocacy efforts while its court challenge to a Pentagon blacklist designation continues.
Highlights
- U.S. court injunction bars the government from denying Pentagon contracts to firms using lobbyists who also represent Alibaba as of Monday.
- Alibaba remains on the Pentagon blacklist, which restricts direct contracts and from 2027 will ban purchases via third parties, while challenging the designation in court.
- Alibaba, which denies having military ties, continues its legal battle following its June lawsuit seeking removal from the China military company list.
Court order preserves lobbying access
As reported by BusinessWorld Online, the ruling issued on Monday bars the U.S. government from refusing Pentagon contracts to companies because they, their parent companies or subsidiaries do business with firms that lobby for Alibaba.The decision means Alibaba can continue using U.S. lobbyists who also represent Pentagon contractors, removing a potential hurdle as it fights its designation as a Chinese military company in court.
Alibaba sued the U.S. government in June after the Pentagon added the company to a list of businesses it alleges are aiding China's military. The list also includes internet search provider Baidu, EV maker BYD and other major Chinese manufacturing and technology groups.
Blacklist challenge remains in place
The injunction does not remove Alibaba from the Pentagon's list, and the company continues to challenge that designation through the courts. The label does not amount to formal sanctions, but it restricts Pentagon contracts with listed companies and, from 2027, purchases of their products or services through third parties.Alibaba has denied having military ties, saying its products and services are built for retail, logistics and enterprise technology rather than defense or intelligence. In its June lawsuit, the company says the Pentagon's determinations have no basis in fact or law and seeks to be removed from the list.
Alibaba does not immediately respond to a request for comment on the injunction.
In our earlier article about BYD Malaysia’s local assembly plans, we covered the company’s decision to partner with Inokom Corporation for CKD vehicle assembly in Kulim, Kedah. We also noted that BYD had dropped its earlier Tanjung Malim plant proposal after export conditions made the project less viable, highlighting how policy requirements can reshape major Chinese firms’ overseas strategies.
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