A federal judge has ordered the Pentagon to stop treating Alibaba as a Chinese military firm for purposes of a new lobbying restriction. The ruling follows Alibaba's lawsuit claiming the Department of Defense’s placement of the e‑commerce giant on the 1260 H entity list violated its free‑speech rights and due‑process protections. The 1260 H list, distinct from OFAC sanctions, now bars the DoD from contracting with firms that employ lobbyists for listed companies, forcing Alibaba’s more than two dozen registered lobbyists to withdraw.

Judge Eumi K. Lee gave the Pentagon 60 days—or until a court hearing resolves the case—to comply, a decision that could set precedent for other firms added to the list. Alibaba argues it has no ties to the Chinese military and that the ban silences its ability to influence U.S. policy, legislation, and regulation affecting its business.

The Pentagon acknowledged the need for a limited‑time stipulation while the court assesses the complaint, but House China committee members urged Defense Secretary Pete Hegseth to enforce the lobbyist ban strictly. The outcome may reshape how U.S. defense procurement interacts with foreign tech firms and could redefine the legal boundaries of corporate lobbying under national‑security statutes.