On February 13, 2026, the United States Department of Defense ("Department") publicly designated Alibaba Group Holding Limited as a "Chinese military company" ("CMC").
asserted
Department → designate → company
On June 30, 2026, 10 U.S.C. § 4663 went into effect, barring the Department from contracting with any company who retained the same lobbyist as a CMC.
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who → go → CMC
Alibaba asserts that Section 4663 has caused lobbyists to withdraw from representing Alibaba for fear of losing other clients.
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lobbyists → assert → clients
The court issued a preliminary injunction, concluding § 4663 likely violates the Free Speech Clause and the Petition Clause:
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§ → issue → Clause
Alibaba is an e-commerce and cloud-computing company that provides products, technology, infrastructure, and services to consumers and businesses for civilian and commercial use.
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that → provide → use
Alibaba provides U.S. companies and businesses with a platform to sell their products to consumers in China.
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Alibaba → provide → China
Additionally, it provides commercial cloud services to companies, including U.S. companies, operating in China and other countries.
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it → provide → China
Alibaba has developed open-source AI models, including Qwen, with a focus on "commercial applications that make it more efficient and secure for businesses to sell goods to consumers in China."
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businesses → develop → China
Alibaba is publicly listed on both the New York Stock Exchange and Hong Kong Stock Exchange.
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Alibaba → list → Exchange
"Prior to being designated [a CMC], Alibaba had retained over two dozen lobbyists and multiple lobbying firms to represent its interests before Congress and the Executive Branch" [including] … "… the Executive Office of the President, the Federal Communication Commission [("FCC")], the Federal Trade Commission, the Consumer Products Safety Commission, the Department of the Treasury, and [other entities]" ….
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Alibaba → designate → Treasury
"They presented Alibaba's views on legislation, rules, regulations, executive orders, and other government policies of commercial interest to the company.
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They → present → company
Specifically, they advocated regarding export expansion, small business export promotion, technology policy, access to U.S. capital markets, e-commerce-related issues, consumer-protection laws, and intellectual property."
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they → advocate → markets
The Court finds that First Amendment scrutiny applies because Section 4663 regulates speech.
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Section → find → speech
By restricting Alibaba's ability to retain lobbyists, Section 4663 functionally restricts its political speech.
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Section → restrict → speech
"Discussion of public issues" is "pure speech" that is at "the core of the protection afforded by the First Amendment[.]"
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that → afford → Amendment
The First Amendment also protects "[t]he right to petition," that is, "the right of the people to inform their representatives in government of their desires with respect to the passage or enforcement of laws[.]"Lobbying government officials is therefore an activity fully protected by the First Amendment.
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Amendment → protect → Amendment
FTC v. Super. Ct. Trial Laws. Ass'n (1990) ("It is, of course, clear that the association's efforts to … lobby District officials to enact favorable legislation … were activities that were fully protected by the First Amendment.")….
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that → lobby → Amendment
Here, Section 4663 appears to be directed at defense contractors, but its consequences are on Alibaba's speech.
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consequences → appear → speech
"[A] government official cannot do indirectly what she is barred from doing directly" by "coerc[ing] a private party to punish or suppress disfavored speech on her behalf."
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she → do → behalf
Section 4663's impact falls on the relationship between Alibaba and the third parties crucial to its speech rights.
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impact → fall → rights
Thus, the Court finds that Section 4663 burdens Alibaba's speech….
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Section → find → speech
Defendants observe that Alibaba is not completely banned from appearing before the federal government—it could hire more in-house lobbyists or find a firm that is willing to forgo defense contractor clients….
uncertain
that → observe → clients
[But] Alibaba is unlikely to find a lobbyist willing to forgo any clients who might want to contract with the Department.
uncertain
who → find → Department
{The statute applies to defense contractors who contract with "entities"—in other words, lobbying firms—who also contract with CMCs.
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who → apply → CMCs
Defense contractors would not risk their ability to enter into a contract with the federal government when there are plenty of capable lobbying firms available.
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contractors → risk → firms
The lobbying firm then must choose.
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firm → choose → ?
One or more of its lobbyists can choose to represent Alibaba, but then the entire lobbying firm must forgo representing defense contractors.
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firm → choose → contractors
The only rational choice for a lobbying firm is to stop representing Alibaba.}
[Alibaba also] represents that it cannot hire the number of experienced in-house lobbyists needed to address the federal government for all its interests….
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it → lobby → interests
The reduction to Alibaba's speech is sufficient to demonstrate a colorable First Amendment claim….
uncertain
reduction → demonstrate → claim
The court then concluded that the law was subject to strict scrutiny:
"Content-based regulations are subject to the most exacting scrutiny because 'the government has no power to restrict expression because of its message, its ideas, its subject matter, or its content.'"
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government → conclude → message
In examining a statute, courts must also examine "restrictions distinguishing among different speakers, allowing speech by some but not others."
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courts → examine → some
"Speech restrictions based on the identity of the speaker are all too often simply a means to control content."
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restrictions → base → content
Thus, identity-based regulations may "demand strict scrutiny when they reflect the Government's preference for the substance of what the favored speakers have to say (or aversion to what the disfavored speakers have to say)."
uncertain
speakers → base → what
…
{Section 4663 is not a content-based restriction….
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Section → base → ?
Section 4663 operates based solely on whether a CMC is involved.
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CMC → operate → ?
What the CMC (or non-CMC) plans to say does not affect whether Section 4663 applies.}
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Section → plan → What
[But] Section 4663 is a speaker-based restriction on speech—it is only applicable if a CMC seeks to retain a lobbyist.
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CMC → base → lobbyist
As a speaker-based restriction on political speech, Section 4663 is subject to strict scrutiny.
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Section → base → scrutiny
Defendants assert that Section 4663 should be considered under intermediate scrutiny, because Alibaba's "differential treatment" is justified by its "special characteristic[ ]," namely the potential involvement of a foreign adversary.
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treatment → assert → adversary
Defendants again rely on TikTok, where the Supreme Court applied intermediate scrutiny despite finding that the divestiture statute was a speaker-based restriction, because the differential treatment was due to a content-neutral reason, namely TikTok's susceptibility to foreign control.
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treatment → rely → control
…and 26 more, not listed.
The Aporia