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

May 21, 2021
Press Release

Rep. Mike Gallagher (R-WI) and Sen. Tom Cotton (R-AR) today introduced the Chinese Communist Party Influence Transparency Act, legislation to close loopholes that allow lobbyists for Chinese companies to avoid registering under the Foreign Agents Registration Act (FARA). Click HERE for bill text.

“Any Chinese company important enough to register lobbyists in Washington, D.C. is significant enough to be co-opted at will by the Chinese Communist Party,” said Rep. Gallagher. “This bill helps close existing loopholes that allow lobbyists to avoid the enhanced scrutiny that comes with the Foreign Agents Registration Act and will reduce the ability of the Chinese Communist Party 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. Cotton.

Last year, Gallagher and Cotton wrote to the Department of Justice expressing concerns about these loopholes and whether individuals lobbying on behalf of certain Chinese companies should be required to register under FARA.

Following calls from Gallagher and Cotton, the U.S. Department of Defense published a list of Chinese companies affiliated with the People’s Liberation Army. Despite the list’s publication, individuals lobbying on the behalf of these Chinese military companies can still receive exemptions that allow them to register under the less transparent Lobbying Disclosure Act.

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