U.S. Rep. John Moolenaar (R-MI) urged strict implementation by the U.S. Defense Secretary of a new ban that prohibits the U.S. Department of Defense (DOD) contracting with companies that retain lobbyists advocating on behalf of Chinese military companies.
“Consistent with your focus on prioritizing our warfighters and delivering the capabilities they need to defend our nation against foreign adversary threats, it is critical that the department’s contractors avoid partnering with firms and lobbyists that simultaneously advance the interests of companies executing the military ambitions of the Chinese Communist Party,” wrote Rep. Moolenaar and Rep. Elise Stefanik (R-NY) in a June 15 letter sent to Defense Secretary Pete Hegseth.
The new requirement for U.S. defense contractors bars them from employing lobbyists or firms representing Chinese military companies that are listed on the Pentagon’s 1260H List.
The letter comes after the Pentagon recently released an updated 1260H List that included numerous Chinese companies long requested by the Select Committee on China, which is chaired by Rep. Moolenaar.
As DOD develops relevant rules and processes to implement Section 851, the lawmakers offered three recommendations for enforcement consideration in their letter.
First, DOD should ensure that the prohibition applies both to prospective and current contractors.
Second, the department’s contractors should be encouraged to consider the full definition of “lobbying activities,” which includes coordination and other supporting work from research to planning that may assist in lobbying contacts.
Some lobbyists and firms working for 1260H List entities may not trigger certain public lobbying disclosure requirements but may still be engaged in lobbying-related activities, according to their letter.
Lastly, implementation should align with the prohibition’s intent to capture U.S.-based subsidiaries of companies on the 1260H List. Chinese companies designated on the 1260H List often operate in the United States through wholly owned subsidiaries and affiliates, wrote Rep. Moolenaar and his colleague.
“Lobbyists representing such clients are inherently advancing the interests of their parent companies designated on the 1260H List, the lawmakers wrote. “Additionally, a lobbyist or firm can be conducting lobbying activities for or on behalf of a client without any direct contract or payment between the firm and that client.”