CHINA WATCHU.S. Lobbyists Drop Chinese Clients Amid Tightened Scrutiny
Lobbying firms in Washington are reportedly rushing to drop clients from China as lawmakers look to tighten scrutiny. The push comes in the wake of a surge in Chinese lobbying in recent years and growing concerns about China’s influence. Legislators aim to prevent the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA) from using gray areas to secretly advance policy agendas that harm the interests of the American people.
Lobbying firms in Washington are reportedly rushing to drop clients from China as lawmakers look to tighten scrutiny. The push comes in the wake of a surge in Chinese lobbying in recent years and growing concerns about China’s influence.
U.S. lawmakers say they are promoting legislation that would provide more transparency into who is lobbying for Chinese companies. The legislators aim to prevent the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA) from using gray areas to secretly 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 completing work on legislation that aims to address the problem. Last year, lawmakers in the Senate passed the disclosing Foreign Influence in Lobbying Act and members of the House have introduced a similar bill. Cornyn was a co-sponsor of the Senate bill.
“We’ve encountered some dissent but will continue to work because it’s important to understand who is actually lobbying these policymakers,” Cornyn said. “The primary focus has been on making sure people register under the Foreign Agents Registration Act. As you know, there’s been a lot of problems associated with people not disclosing their lobby contracts with foreign countries.”
Closing Loopholes
In pushing legislation, lawmakers are looking to close existing loopholes in the Foreign Agents Registration Act of 1938 (FARA) and the Lobbying Disclosure Act of 1995 (LDA) to demand more transparency regarding foreign governments and political parties that participate in the planning, supervision, direction or control of lobbying efforts regardless of whether they have made any financial contributions or not.
China is a unique challenge, Cornyn noted.
“The Chinese are unique in that there is no true solely private sector; they are forced to share information with the PLA and with their intelligence agencies,” he said. “So, I would say anytime we’re dealing with the Chinese-owned enterprise, it’s a cause for concern.”
U.S. lobbying is regulated by the LDA, which requires disclosure of domestic lobbying, and FARA, which requires disclosure of lobbying and other forms of influence by foreign governments and political parties. However, in 1995, FARA was amended to exempt those who represent foreign companies or individuals if the work is not intended to benefit a foreign government or political party. As a result, lobbyists registered under the far less transparent LDA and the result was a dramatic drop in FARA registrations.
