China Exploits Lobbying Loophole to Dodge Disclosure

Chinese tech companies facing federal indictment and sanctions are exploiting a legal loophole to hide their army of Capitol Hill lobbyists from public scrutiny.

The companies-all of which are either owned or closely linked to the Chinese government-have avoided registering the vast majority of their lobbyists as foreign agents through a loophole.

Lobbyists for foreign entities must register under the Foreign Agents Registration Act and disclose detailed information about their influence-peddling operations.

Without FARA registration, government watchdogs will struggle to track how these foreign corporations were able to extract concessions from a Beltway elite that is increasingly hostile to China.

Federal law exempts lobbyists from foreign agent registration "As long as the representation is not on behalf of a foreign government or foreign political party." Because they are only advocating on behalf of regime-linked companies, these foreign lobbyists only have to comply with federal Lobbying Disclosure Act requirements, which have far fewer transparency standards.

The lobbying exemption was carved out in the 1990s to reduce red tape for the many foreign companies active in the United States, according to Smithberger.

Hikvision-a state-controlled company that made surveillance equipment for Xinjiang, a region where the Chinese state is inflicting genocide on the Muslim Uyghur minority-has also failed to register lobbyists with FARA. Ethics and transparency watchdogs say the disclosure system must be reformed.

https://freebeacon.com/national-security/china-exploits-lobbying-loophole-to-dodge-disclosure/