U.S. lobbying firms abandon representation of Chinese tech giants on Pentagon’s blacklist amid new restrictions on lobbying
The most influential lobbying firms in Washington are now racing to sever ties with Chinese tech giants as new U.S. restrictions reshape the influence landscape of many Chinese companies in Washington.
According to Bloomberg, a law that took effect on June 30 prohibits the Pentagon from partnering with any company represented by lobbyists who simultaneously serve entities blacklisted by the Pentagon for allegedly assisting China’s military. In practice, this clause forces lobbyists to choose between representing Chinese firms and representing U.S. defense contractors.
Based on a series of disclosures released on June 29 and throughout the past week, one Chinese company has just lost representation by five lobbying firms, while another has lost four. These firms include Brownstein Hyatt Farber Schreck, Mercury Public Affairs, and MO Strategies—previously all representing both of these Chinese tech giants.
Marty Obst, founder and president of MO Strategies, commented on the new restrictions tied to the Pentagon’s “China Military Companies” list—commonly known as the “1260H List”—saying: “We will fully comply with the U.S. Department of War’s new policy.”
Section 1260H of the Fiscal Year 2021 National Defense Authorization Act instructs the Pentagon to identify Chinese enterprises that contribute to civil-military integration, whether directly or indirectly operating in the United States. While these designations do not explicitly impose sanctions, they mean the Pentagon is prohibited from entering into direct contracts with listed companies—and starting June 2027, it will also be banned from purchasing their products or services through third parties.
In some cases, the reputational damage caused by such listings could undermine these companies’ sales to other branches of the U.S. government or to American consumers. According to disclosures published last week, Sidley Austin and Greenberg Traurig—law firms previously representing Chinese companies in this litigation—are no longer engaging in lobbying activities on behalf of these firms.
According to a filing in April, Holland & Knight has also taken similar action. None of these law firms have offered comment. The new restrictions apply specifically to lobbying activities but do not extend to legal representation services.
These decisions to drop Chinese clients underscore how the Pentagon’s blacklist has become an increasingly vital tool in America’s broader competition with China—particularly in advanced technologies. With the latest update, the number of designated entities has risen to 188, compared to only 20 under the previous regulations several years ago.
The “1260H List” covers critical sectors including semiconductors, artificial intelligence, robotics, and drones. The latest update in June triggered backlash from China, which responded by adding ten U.S. entities—including Aivio Inc.—to its export control list, among them two rare earth producers previously linked to the Trump administration.
On September 9, Chinese Foreign Ministry spokesperson Lin Jian stated during a regular press briefing: “China has consistently resolutely opposed the U.S. broadening of national security concepts, creating various discriminatory lists, and unjustly targeting Chinese enterprises.”
The criteria established by the U.S. Congress for inclusion are relatively broad, allowing the Pentagon to theoretically legally designate nearly any Chinese company with operations in the United States for the “1260H List.”
At the same time, the U.S. Congress has intensified the consequences of being placed on this list, including the aforementioned lobbying restrictions and a rule prohibiting the Pentagon from signing new contracts with designated entities, effective June 30. Further contract-related restrictions are scheduled to take effect one year later.
Chinese companies on the list are now weighing various response strategies. According to informed sources, companies that previously attempted private appeals to the Pentagon are now considering legal challenges against the agency—but recent lawsuits filed in Washington’s federal courts have not succeeded.
Source: rfi
Original article: toutiao.com/article/1869481358711819/
Disclaimer: This article reflects the views of the author alone