A US federal judge on Sunday issued a temporary 60-day stay on enforcing the ban on Alibaba's hiring of US lobbyists while reviewing its constitutionality, preventing the Pentagon from enforcing it against Alibaba during this period.
According to Bloomberg, a new law that took effect last week targets companies suspected of assisting the Chinese military. Lobbying firms working for companies blacklisted by the Pentagon for allegedly aiding China’s military will be prohibited from cooperating with the U.S. Department of Defense. This has forced Washington’s most influential lobbying firms to sever ties with Alibaba and other Chinese tech giants.
However, under the judge’s order, during the period of the stay, the Pentagon must not treat Alibaba as a Chinese military company.
Previously, on June 8, the Pentagon added Alibaba to its list of Chinese military companies operating in the United States (the Section 1260H list), which covers companies in critical sectors such as semiconductors, AI, robotics, and drones. Alibaba filed a lawsuit on June 23 and submitted a motion on June 30 seeking to suspend the lobbying ban.
In a recent filing, Alibaba stated that the ban infringes on its freedom of speech, causing the company to “lose its voice” in dealings with the federal government, including legislation, regulation, and policies shaping its business.
Alibaba also noted that no established lobbying firm would be willing to represent it at the cost of losing access to tens of thousands of companies that hold contracts with the Pentagon. In another filing, the company said its more than 20 registered lobbyists have all withdrawn their registrations in recent weeks.
Meanwhile, in a joint statement submitted last Friday, the Pentagon indicated that officials believe the ban fully complies with the U.S. Constitution, but acknowledged that “both parties and the court would benefit from a short-term agreement” to allow the court time to make its assessment.
