U.S. District Judge Eumi K. Lee issued a preliminary injunction on Monday, temporarily halting a government policy that had effectively forced lobbying firms to choose between representing Alibaba or clients associated with the U.S. Department of Defense. The restriction had previously caused several Washington lobbying firms to drop Alibaba as a client due to the potential conflict of interest created by the Pentagon-related work.

In her ruling, Judge Lee determined that the government failed to provide sufficient evidence to justify the restriction. The court indicated that Alibaba is likely to succeed in its broader legal challenge, which argues that the measure infringes upon the company's First Amendment rights. By blocking the rule, the court has cleared the way for lobbying firms to resume representing the Chinese technology giant without fear of losing their Pentagon-related contracts. The government has not yet provided a formal response to the ruling, and the case remains ongoing as the court considers the merits of Alibaba's full challenge to the policy.