WASHINGTON: A US federal judge on Monday granted Alibaba Group Holding's requests a preliminary injunction, ordering the US government not to deny Pentagon contracts to companies because they, their parent companies or subsidiaries do business with firms that engage in lobbying activities for the e-commerce giant.
Alibaba sued the US government in June after the Pentagon added it to a list of companies allegedly aiding China's military, alongside internet search provider Baidu, EV maker BYD, and other major Chinese manufacturing and technology firms.
Monday's ruling means Alibaba will be able to retain US lobbyists who also represent Pentagon contractors, removing a potential obstacle to the company's efforts to challenge its designation as a Chinese military company.
The designation does not impose formal sanctions but restricts Pentagon contracts with listed companies and, from 2027, purchases of their products or services through third parties.
Alibaba has denied any military ties, saying its products and services are built for retail, logistics, and enterprise technology rather than defence or intelligence.
"The determinations have no basis in fact or law," Alibaba said in its lawsuit in June, seeking its removal from the list.
Monday's injunction does not remove Alibaba from the Pentagon list, which the company is continuing to challenge in court.
Alibaba did not immediately respond to a request for comment on the injunction.