China’s Alibaba wins court ruling over Pentagon ban that made the company fire dozens of American lobby firms
Because they work with firms that lobby for Alibaba, reports Reuters, a US federal judge has ruled that the government cannot block companies from getting Pentagon contracts simply. The Chinese company sued the US government in June this year after the Pentagon added the Chinese company to a list of firms accused of helping China’s military. The list also included search engine company Baidu, electric vehicle maker BYD and other Chinese technology and manufacturing firms.
What the ruling means for Alibaba
From 2027, restrictions are also expected to cover purchases of listed companies’ products and services through other suppliers, potentially affecting their place in US defence supply chains. The same month, biotech firm WuXi AppTec Co also won a preliminary injunction from a US federal court, that blocked its inclusion on the list.
Alibaba says its technology is built for businesses, retail and logistics, not military or intelligence work. The court’s decision allows Alibaba to continue working with Washington lobbyists who also represent companies that do business with the Pentagon. As per the report, this could help the Chinese company fight its inclusion on the US military-related list. Alibaba reportedly dropped dozens of lobbyists after the Pentagon named it in June. The company has challenged the decision, arguing that there is no evidence to support the claim that it has links to China’s military. Being on the list does not bring direct sanctions, but it can affect a company’s ability to secure Pentagon contracts. The latest court order, however, does not remove the company from the Pentagon’s list. Its legal challenge is still ongoing. Notably, Alibaba is not the only Chinese firm on the Pentagon’s blacklist. Last month, two subsidiaries of the world’s largest electric vehicle maker BYD also sued the US Department of Defence over a federal law banning any Pentagon contractors from hiring lobbyists that also work with blacklisted firms. You use AI every day. Now get your AI Quotient. Take the AIQ test.
Earlier in August, DJI appealed its inclusion on the blacklist.