A U.S. federal judge granted Alibaba a 60-day reprieve from a Pentagon lobbying ban. The court issued the ruling on July 5. This decision prevents the Defense Department from labeling Alibaba a Chinese military company during the stay. The court will use the 60-day window to evaluate the constitutionality of the law.
The restrictive law previously forced several Washington lobbyists to sever ties with the e-commerce giant. This exodus hindered Alibaba’s ability to engage with the federal government on regulatory matters. Alibaba filed a lawsuit to challenge its inclusion on the Pentagon's blacklist for allegedly aiding the Chinese military.
An Alibaba spokesperson stated the ruling provides the company with proper channels to communicate its views. Alibaba shares recorded pre-market gains on July 6 following the announcement.