Gallagher, Cotton Introduce Bill to Close Lobbying Loopholes for Chinese Companies

October 22, 2020
Press Release

Rep. Mike Gallagher (R-WI) and Senator Tom Cotton (R-AR) today announced they will introduce the Chinese Communist Party Influence Transparency Act, which would close loopholes that allow lobbyists for Chinese companies to avoid registering under the Foreign Agents Registration Act (FARA). The bill comes after Rep. Gallagher and Sen. Cotton wrote to Attorney General Bill Barr last month expressing concerns about these loopholes and whether individuals lobbying on behalf of certain Chinese companies should be required to register under FARA. Click HERE for bill text.

"Even nominally private Chinese firms are not like normal companies. All Chinese firms, and especially those significant enough to register lobbyists in Washington, D.C., are subject to the extrajudicial direction of the Chinese Communist Party," said Rep. Gallagher. "This bill ensures companies subject to the direction of the CCP face appropriate disclosure standards and Americans better understand how our adversaries seek to use the swamp against us." 

“Chinese companies—particularly powerful ones—are all arms of the Chinese Communist Party and remain ultimately under state control. It’s time our laws recognize that reality. Our bill will close legal loopholes and force lobbyists for Chinese companies to register as foreign agents," said Sen. Tom Cotton.

Following calls from Rep. Gallagher and Sen. Cotton, the U.S. Department of Defense released lists of Chinese companies affiliated with the People's Liberation Army. Despite the publication of these lists, individuals lobbying on their behalf can still receive exemptions, including for commercial activity, that allow them to register under the less transparent Lobbying Disclosure Act

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