When a Chinese drone company came under U.S. government scrutiny over alleged ties to the Chinese military, the company turned to one of America’s preeminent lawyers: Loretta Lynch, the former attorney general in the Obama administration.
Lynch headed the U.S. Department of Justice from 2015 to 2017 and is now a partner at the law firm Paul, Weiss. In July last year, she sent a letter to senior officials of the Ministry of National Defense on behalf of Shenzhen DJI Technology Co., Ltd., demanding that her client be removed from the list of Chinese military industrial companies.
It is legal to defend foreign clients, and U.S. law includes a public disclosure exemption for attorneys.
But the letter seen by Reuters is an example of what transparency advocates and some members of Congress, dozens of whom supported the rule-changing bill, say are legal loopholes that allow lawyers and lobbyists, including former officials, to avoid Disclose information that they provide support to companies that may be subject to U.S. sanctions.
Law firm Paul Weiss declined to comment on the letter, and Lynch did not respond to an email from Reuters. DJI also declined to comment, but has previously said it is not a military company and is preparing to formally challenge its inclusion on the list.
The Foreign Agents Registration Act (FARA) is a decades-old law that requires public disclosure of work performed on behalf of non-U.S. entities, including a series of exemptions, including business activities and legal representation.
The former top U.S. law enforcement official’s work on behalf of a company the Defense Department called a “national security threat” comes as U.S. agencies warn against companies with ties to the Chinese Communist Party and lawmakers push for tightening Disclosure Requirements under the Foreign Agents Registration Act.
The U.S. Departments of Treasury and Commerce said DJI supports biometric surveillance and tracking of China’s Muslim Uyghur minority.
The Defense Department did not respond to a request for comment on Lynch’s letter. DJI remained on the Pentagon’s list when updated in late January.
The Justice Department also declined to comment on the letter and FARA enforcement more broadly.
Nearly a dozen critics of the Foreign Agents Registration Act told Reuters that loopholes in the law have led to less transparency at other companies with alleged ties to the Chinese military, including surveillance technology firm Hikvision and biotech firms WuXi AppTec.
Jim Risch, the top Republican on the Senate Foreign Relations Committee, said the law needs to be reformed and prevent former members of the U.S. government from effectively lobbying on their behalf, given the blurring lines between many Chinese companies and the Chinese government.
“It is alarming that former senior U.S. officials would use their relationships to serve the interests of U.S. adversaries,” Reish said.
However, the American Civil Liberties Union and other groups claim that expanded disclosure requirements could become a barrier to legally protected free speech.
In 2022, the American Civil Liberties Union and 13 other groups wrote to the Justice Department expressing their concerns and warning that the legal issues could “lead to selective enforcement for malicious or malicious reasons.”
Others argue that stricter FARA disclosure rules could provide cover for authoritarian states like Russia and China to suppress free speech.
Jonathan Turley, a professor at George Washington University Law School, said some countries, such as Russia, label citizens and journalists as foreign agents to limit their activities.
“I do have concerns about some of the past investigations and prosecutions that have targeted individuals who appeared to be involved in First Amendment activity,” Turley told Reuters.
request a meeting
The Pentagon added DJI to a list of Chinese military industrial companies in 2022, a designation intended to warn of the risks of doing business with these entities.
In a letter on behalf of DJI to Assistant Secretary of Defense Laura Taylor-Kyle, Lynch urged the Department of Defense to immediately remove the drone maker.
“The widespread use and reliance on DJI products by various U.S. stakeholders reinforces the importance and urgency of removing DJI from the list,” Lynch wrote.
DJI requested “a meeting to discuss the matter,” she added. Reuters could not confirm whether the meeting took place.
Also signing the letter, marked “Confidentiality Requested,” were former Assistant U.S. Attorney Michael Gertzman and Roberto Gonzalez, an assistant White House counsel during the Obama administration. They are both now partners at Paul, Weiss.
Goetzman and Gonzalez did not respond to requests for comment.
Enforcement of the Foreign Agents Registration Act has been stepped up in recent years, with the Ministry of Justice prosecuting individuals representing China’s interests and pushing some law firms to register.
Lawyer Paul Weiss acknowledged that China-related enforcement efforts are increasing.
In a 2022 memo to clients regarding a U.S. court’s dismissal of a lawsuit against casino mogul Steve Wynn, Lynch, Gonzalez and others, Weiss’ Foreign Agents Registration Act (FARA) case, writing: “The Justice Department’s targeting of lobbying on behalf of China is further evidence that Biden intends to use all available legal tools in a multifaceted strategy to confront China. the threat posed.”
Paul Weiss did not respond to questions about the memo, and a White House spokesman did not immediately respond to a request for comment.
At the request of the Justice Department, law firm Sidley Austin retroactively registered lobbying activities on behalf of Hikvision in 2022, which the United States said was involved in human rights abuses against Uyghurs.
Sidley Austin declined to comment on its registration. While the company did not initially file under the Foreign Agents Registration Act, it disclosed under the Lobbying Disclosure Act, which has less stringent disclosure requirements, according to the Justice Department.
The Department of Justice is calling for the repeal of the LDA exemption for FARA filings.
Hikvision did not respond to a request for comment but has previously denied reports that the company is involved in human rights abuses.
Pressure on Congress began to mount again.
On March 5, the House Select Committee on China asked the Justice Department to review lobbying by trade association Biotech Innovation on behalf of Chinese biotech company WuXi AppTec against possible FARA requirements.
BIO told Reuters its advocacy was simply fulfilling its duty to inform Congress and patients about the impact of potential policies and “nothing more.”
When Reuters asked WuXi about the House committee’s request, the company said it opposed “inaccurate assertions and preemptive actions against our company without due process,” adding that it was confident lawmakers would view it as trustworthy. Partner.
Reforms are decided by Congress
Some experts, including those concerned about expanding FARA’s scope, believe the law is vague and creates special challenges for attorneys.
David Laufman, a partner at Wiggin and Dana who oversaw FARA enforcement at the Justice Department, said that while attorneys may not be required to register under FARA if they avoid discussing policy with government officials, the only The way to determine this is to seek an opinion from the Department of Justice.
“In the meantime, life as a lawyer goes on. We have to represent our clients,” he said.
Reform of the law will be decided by Congress. Several bipartisan bills have been introduced aimed at closing loopholes in FARA.
One proposal introduced in the House and Senate last year could require anyone acting as an “agent of a foreign principal” to register retroactively under the Foreign Agents Registration Act.
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
