Lobbying firms in Washington are reportedly rushing to ditch Chinese clients as lawmakers look to increase scrutiny. The move comes amid a surge in Chinese lobbying activity in recent years and growing concerns about China’s influence.
U.S. lawmakers say they are pushing for legislation to increase transparency about who is lobbying for Chinese companies. Lawmakers aim to prevent the Chinese Communist Party and the People’s Liberation Army from using gray areas to covertly advance policy agendas that harm the interests of the American people.
Republican Senator John Cornyn told VOA’s Mandarin Service last week that lawmakers are very close to finalizing legislation aimed at addressing the issue. Last year, members of the Senate passed the Foreign Influence Lobbying Disclosure Act, and members of the House of Representatives introduced a similar bill. Cornyn is one of the co-sponsors of the Senate bill.
“We’ve encountered some dissent, but we’re going to keep working because it’s important to understand who is actually lobbying these policymakers,” Cornyn said. “The main focus is making sure people register under the Foreign Agents Registration Act. As you know, there are a lot of problems because of people not disclosing lobbying contracts with foreign countries.”
plug loopholes
In advancing the legislation, lawmakers hope to close existing loopholes in the Foreign Agents Registration Act (FARA) of 1938 and the Lobbying Disclosure Act (LDA) of 1995, requiring those involved in planning, supervising, directing or controlling lobbying work regardless of whether they make any financial contributions.
Cornyn noted that China presents a unique challenge.
“What’s unique about the Chinese is that there’s no real full private sector; they’re forced to share information with the People’s Liberation Army and their intelligence agencies,” he said. “So, I would say it’s concerning whenever we deal with Chinese companies.”
Lobbying activities in the United States are regulated by the LDA, which requires disclosure of domestic lobbying activities, and FARA, which requires disclosure of lobbying and other forms of influence by foreign governments and political parties. However, in 1995, the Foreign Agents Registration Act was amended to provide an exemption from this provision if the work performed on behalf of a foreign company or individual is not intended to benefit a foreign government or political party. As a result, lobbyists registered under the much less transparent LDA, resulting in a sharp decline in FARA registrations.
customer churn
The heightened scrutiny of China lobbying comes after the Department of Defense released in late January a list of “Chinese military companies” operating directly or indirectly in the United States, known as the “1260H List.”
Lawmakers later said they were considering a measure that would bar lobbyists representing companies on the list from meeting with members of Congress or even discussing issues on behalf of their U.S. clients.
After the 1260H list was released, a chart began circulating on Capitol Hill listing the names of multiple Chinese companies, including some military companies, along with the names of their lobbying firms and whether they appear on the 1260H list.
According to the chart, at least five U.S. lobbying firms had dropped Chinese clients as of the end of February. Law firm Steptoe LLP has terminated its contract with Shenzhen biotech company BGI. Law firm Akin Gump filed cease-and-desist documents to stop lobbying for Chinese lidar maker Hesai Group and to terminate cooperation with Chinese electronics company Xiaomi, which is not included on the 1260H list. The Vogel Group has also dropped its lobbying efforts against Chinese drone company DJI and Complete Genomics, a subsidiary of genetic technology company BGI.
DJI and Hesai are both on the 1260H list. Complete Genomics is not on the list, but its former parent company, BGI, is.
boycott meeting
Republican Senator Marco Rubio told VOA that while it would be difficult to pass a law prohibiting members of Congress from meeting anyone, some congressional offices have decided not to meet with lobbying firms representing Chinese military companies.
“We will not meet with certain entities because we know that, while they may be doing so for commercial reasons, the interests they represent are closely aligned with China’s goals, military goals and aspirations,” he said. “So… we The decision was made unilaterally. “
Lobbying by Chinese military entities has historically been a murky area with weak enforcement, said Robert Sutter, professor of the practice of international affairs at George Washington University’s Elliott School.
“These [companies] Lobbying for these companies…may be legal to some extent. But there are reputational costs, and I think that’s why members of Congress are calling attention to it when they say they’re going to boycott these companies,” he said.
Lobbying activity in China has surged in recent years, according to the money-in-politics website Open Secrets. Between 2019 and 2023, China spent more than $330 million on lobbying. This contrasts with the $60 million spent between 2015 and 2018.
China’s lobbying list
Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, noted that until a few years ago, lobbying by Chinese companies in Washington was almost non-existent, but that changed when the U.S. government went after Huawei.
Since then, “Chinese companies have changed tactics, rapidly scaling up and deploying lobbyists to protect their bottom lines in the face of increasing scrutiny from both Democrats and Republicans,” he said. “Today, China’s lobbying roster reads like a ‘Who’s Who’ of Washington insiders, from retired Pentagon officials to former top congressional aides. The goal of these lobbying operations is simple: disrupt any market that might exist for their clients share conduct that has negative consequences, deflect regulatory scrutiny and withstand sanctions.”
Singleton said the Justice Department, which administers and enforces the Foreign Agents Registration Act, could play a greater role in curbing China’s malign lobbying influence on Capitol Hill.
He said: “The U.S. Department of Justice is currently requiring only two Chinese companies, Huawei and Hikvision, to disclose their lobbying activities under the Foreign Agents Registration Act to provide a comprehensive overview of their activities. Although more Chinese companies have been targeted by the U.S. Flagged by the government as national security risks, the Department of Defense and the Federal Communications Commission, and the Department of Justice have not yet expanded FARA filing requirements to these problematic entities. The only apparent obstacle to such action is a lack of political will within the Department of Justice.”
VOA Mandarin contacted the Justice Department, which declined to comment.
Yihua Li and Adriana Zhang contributed to this report.
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