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The Alibaba corporate logo displayed outside an office building in Beijing, China / AP, Yonhap News

Major lobbying firms in Washington, D.C., are cutting ties with Chinese technology giants like Alibaba and Tencent ahead of new legal restrictions, Bloomberg News reported on the 29th (local time).

According to Bloomberg, influential American lobbying groups—including Brownstein Hyatt Farber Schreck, Mercury Public Affairs, and MO Strategies—have terminated their contracts with Chinese firms.

Brownstein Hyatt Farber Schreck and Mercury Public Affairs recently ended their representation of Alibaba and Tencent. MO Strategies has also been severing its relationships with Chinese clients, stating its commitment to being fully compliant with the new defense policy.

Washington political insiders report that Alibaba recently lost five of its lobbying firms, while Tencent was dropped by four.

This wave of terminations is driven by a new provision in the National Defense Authorization Act (NDAA) taking effect on June 30. The regulation restricts the scope of lobbyists and companies permitted to contract or cooperate with the U.S. Department of Defense.

Under the rule, any lobbyist representing a company on the Pentagon's "1260H" Chinese military companies list is barred from working with U.S. defense contractors.

The 1260H roster, maintained and updated annually by the Department of Defense since 2021, identifies entities determined to be assisting or affiliated with the Chinese People's Liberation Army.

Alibaba filed a lawsuit on the 23rd challenging its inclusion on the 1260H list, arguing the designation is groundless and requesting immediate removal.

                                                                                                            Park Jin-sook