House and Senate lawmakers are urging the Pentagon to take an expansive and aggressive approach in implementing a new statutory ban that will bar the department from contracting with companies that maintain relationships with lobbyists representing Chinese military-linked firms, warning that narrow interpretations could undermine Congress' intent to sever indirect ties between U.S. defense contractors and Beijing's defense-industrial base.

In a letter to Defense Secretary Pete Hegseth, House Select Committee on China Chairman John Moolenaar (R-MI) and House Republican Leadership Chairwoman Elise Stefanik (R-NY) pressed the department to enforce Section 851 of the Fiscal Year 2025 National Defense Authorization Act, which takes effect June 30, 2026, and prohibits contracting with firms that retain or contract with entities lobbying on behalf of companies identified on the Pentagon’s Section 1260H list of Chinese military companies.

The Defense Department released the annual 1260H list last week, identifying a range of major commercial technology, industrial and energy firms -- including Alibaba Group Holding Limited, Baidu, Inc., and electric vehicle maker NIO as being linked to the Chinese military.

Moolenaar and Stefanik said the Section 851 ban should apply not only to new contracts but also to existing contractor relationships and urged officials to interpret “lobbying activities” broadly to include consulting, advisory and other supporting work that may facilitate influence efforts even if not formally disclosed under lobbying registration requirements.

They also called for rules ensuring the ban captures subsidiaries and affiliates of listed Chinese firms operating in the United States through complex corporate structures.

“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,” the lawmakers wrote.