Alibaba Group Holding Ltd. received a temporary legal reprieve after a federal judge ordered the Pentagon not to treat the company as a Chinese military company under a new lobbying restriction while the court reviews Alibaba's challenge. The restriction had pushed major Washington lobbying firms to cut ties with Alibaba, and the company said all of its more than two dozen registered lobbyists withdrew in recent weeks, arguing the rule effectively caused it to lose its voice in federal policy discussions. The Pentagon's 1260H list has become a key tool in the U.S.-China rivalry, expanding to 188 designated Chinese military companies after Alibaba was added on June 8, with the roster spanning sectors including semiconductors, artificial intelligence, robotics and drones. The ruling gives Alibaba breathing room in a case that could test how far the U.S. can go in limiting the activities of Chinese companies accused of aiding China's military.
Alibaba Group Holding LtdFederal judge temporarily blocks Pentagon from treating Alibaba as a Chinese military company, giving it legal reprieve.