Moolenaar, Stefanik: Defense Contractors Must Cut Off Firms That Also Work For Chinese Military Companies

Chairman John Moolenaar (R-MI) of the Select Committee on China and Chairwoman Elise Stefanik (R-NY) of House Republican Leadership sent a letter to Secretary of War Pete Hegseth urging strict implementation of a new requirement for U.S. defense contractors that bars them from employing lobbyists or firms representing Chinese military companies on the Pentagon’s 1260H List. The letter comes after the Pentagon recently released an updated 1260H List that included numerous Chinese companies the Select Committee has long requested to be added to the list.

In this new letter, the lawmakers write:

“We commend the Department for issuing a robust update of the Chinese military companies list last week. Building on this momentum, we urge strict implementation of the upcoming ban on the Department 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.” 

…

"As the Department develops relevant rules and processes to implement Section 851, we offer three recommendations for enforcement consideration. First, the Department 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. Third, 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. Lobbyists representing such clients are inherently advancing the interests of their parent companies designated on the 1260H List. 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."

Read the full letter here.