Judge bars Pentagon from denying contracts to companies over ties to Alibaba's lobbyists

As of 8:56 a.m. ET, Oct. 27, 2026

A U.S. federal judge on Monday granted Alibaba Group Holding's request for a preliminary injunction, ordering the government not to deny Pentagon contracts to companies because they, their parent companies or their subsidiaries do business with firms that lobby for the Chinese e-commerce company, Reuters reported.

The case, Alibaba Group Holding Limited v. United States Department of Defense, No. 5:26-cv-06227, is before U.S. District Judge Eumi K. Lee in the Northern District of California, according to the court docket.

The ruling means Alibaba can keep U.S. lobbyists who also represent Pentagon contractors, removing a potential obstacle to its effort to challenge its designation as a Chinese military company, Reuters reported. It does not remove Alibaba from the Pentagon's list.

The lawsuit

Alibaba sued in June after the Pentagon added it to its list of companies it says are aiding China's military, alongside search provider Baidu, electric-vehicle maker BYD and other Chinese manufacturing and technology firms, Reuters reported. The complaint was filed on June 23 against the Defense Department, Defense Secretary Pete Hegseth, Deputy Defense Secretary Stephen Feinberg and Assistant Secretary of Defense for Industrial Base Policy Michael Cadenazzi, according to the docket.

"The determinations have no basis in fact or law," Alibaba said in its lawsuit, which seeks its removal from the list. The company has denied any military ties, saying its products and services are built for retail, logistics and enterprise technology rather than defense or intelligence, Reuters reported.

The designation does not impose formal sanctions, but it restricts Pentagon contracts with listed companies and, from 2027, purchases of their products or services through third parties, according to Reuters. A federal law bars Pentagon contractors from hiring lobbyists who also work for listed firms. In July, the court approved a stipulation between the parties setting a schedule for Alibaba's motion for a temporary restraining order and preliminary injunction, according to the docket.

Alibaba fired dozens of its Washington lobbyists after the Pentagon action in June, Reuters reported, citing a source with direct knowledge of the matter. Alibaba did not immediately respond to Reuters' request for comment on the injunction.

Other Chinese companies in court

Alibaba is one of several Chinese companies challenging their placement on the list, according to Reuters. Last month, two BYD subsidiaries sued the Defense Department over the lobbying law, arguing it violates BYD's First Amendment rights. In August, an appeals court ordered a lower court to reconsider drone maker DJI's bid to be removed from the list, and that case is ongoing. Also in August, biotech company WuXi AppTec won a preliminary injunction blocking its inclusion on the list, Reuters reported.

What is not known

GROKsiNEWS.com has not read the text of Monday's order, so the judge's reasoning and the exact terms and duration of the injunction are not known beyond Reuters' description. The Defense Department has not commented publicly, and it is not known whether the government will appeal. Alibaba's broader challenge to its designation remains pending.