WHAT HAPPENED
Alibaba Group has secured a preliminary injunction from a US federal judge preventing the government from denying Pentagon contracts to companies because they, their parent companies, or subsidiaries do business with firms that lobby on behalf of the Chinese e-commerce and technology group. The ruling, issued on Monday, gives Alibaba greater room to continue its Washington lobbying activities while it challengesits designationby the US Department of Defense as a company allegedly aiding China’s military. However, the injunction does not remove Alibaba from the Pentagon’s list or resolve the underlying dispute over its alleged links to China’s defense establishment. The case shows that Washington’s efforts to limit China’s influence in the US defense supply chain are extending beyond direct procurement decisions to affect lobbying relationships, corporate subsidiaries and third-party commercial arrangements. Alibaba sued the US government in June after the Pentagon added it to a list of companies it alleges support China’s military.
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