Overview
- A U.S. district judge issued a temporary order on Sunday that stops the Pentagon from enforcing the FY2025 law barring shared lobbyists for companies on the Section 1260H roster against Alibaba while the court reviews the company’s challenge.
- Alibaba sued in late June arguing the lobbying restriction and its placement on the 1260H list violate its First Amendment right to petition the government and its right to due process, and the judge found those claims sufficient to pause enforcement for now.
- Section 1260H was broadened to 188 firms in early June and Section 851 of the defense spending law bars Defense Department contractors from representing clients who also lobby for blacklisted entities, a rule that prompted major firms to drop Alibaba in late June.
- Pentagon lawyers told the court they believe the restriction is constitutional but agreed to a limited stipulation to allow judicial review, leaving the underlying designation and statute subject to further briefing and a future hearing.
- The case could set binding precedent on whether the government may use blacklist-linked rules to restrict political representation and business access for Chinese tech firms and it directly affects Alibaba’s ability to communicate with U.S. policymakers while the lawsuit proceeds.