lobbyists

June 30 (Asia Today) — Major Washington lobbying firms are ending their relationships with Alibaba, Tencent and other Chinese companies as a new U.S. defense-contracting restriction takes effect Tuesday.

Brownstein Hyatt Farber Schreck, Mercury Public Affairs and MO Strategies were among the influential firms that recently terminated contracts with the Chinese technology companies, Bloomberg reported Monday.

Public lobbying disclosures showed Alibaba had lost five lobbying firms and Tencent had lost four over the past week. MO Strategies said it would comply fully with the new Defense Department requirements.

The shift follows the implementation of Section 851 of the fiscal 2025 National Defense Authorization Act.

The provision prohibits the Defense Department from awarding contracts to a company, including its parent companies and subsidiaries, if that company retains a covered lobbyist who also lobbies for a Chinese business on the Pentagon’s Section 1260H list.

The law does not directly prohibit lobbying firms from representing Chinese companies. In practice, however, it forces firms to choose between Chinese clients on the list and U.S. companies seeking Defense Department business.

The Pentagon established the Section 1260H list under the fiscal 2021 defense authorization act to identify companies it considers affiliated with China’s military or contributors to Beijing’s military-civil fusion strategy.

The Defense Department added Alibaba and dozens of other companies to an updated list published June 8. The latest version includes 188 entities operating directly or indirectly in the United States, according to the department.

Tencent appeared on an earlier version of the list and remained designated in the June update.

A company’s inclusion on the list does not by itself impose comprehensive economic sanctions. Other U.S. laws, however, increasingly connect the designation to federal contracting, procurement and funding restrictions.

Alibaba filed a federal lawsuit last Tuesday seeking removal from the list. The Chinese e-commerce company said the Pentagon lacked sufficient evidence to classify it as a Chinese military company and failed to adequately consider evidence disputing the alleged ties.

Alibaba has denied that it works with the Chinese military or participates in China’s military-civil fusion strategy. Tencent has also denied military links.

Alibaba said in its lawsuit that the new lobbying restriction had already prompted several firms and individual lobbyists to indicate that they would end their relationships with the company.

The Pentagon’s expanded list and the new contracting rule are likely to increase compliance reviews among Washington lobbying firms, law firms, consultants and defense contractors.

Companies seeking Pentagon contracts may need to determine whether outside advisers represent any listed Chinese entities, even when those advisers’ work for the U.S. company is unrelated to national defense.

The development also narrows Chinese companies’ access to experienced lobbyists as they seek to challenge expanding trade, investment and national security restrictions in Washington.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260630010010558

WASHINGTON — The head of the Food and Drug Administration, Dr. Marty Makary, is resigning after a rocky tenure that drew months of complaints from health industry executives, anti-abortion activists, vaping lobbyists and other allies of President Trump.

He steps down after just over a year leading the powerful health regulatory agency, according to a White House official who was not authorized to speak before an announcement expected Tuesday and requested anonymity.

Kyle Diamantas, the agency’s chief for foods, will take over as acting commissioner, the official said. Diamantas is an attorney with personal ties to Donald Trump Jr.

A surgeon and health researcher, Makary came to prominence among Republicans as an outspoken critic of COVID-19 health measures during the pandemic when he frequently appeared on Fox News.

But he struggled to manage the FDA’s bureaucracy and failed to win the confidence of its staff after mass layoffs, leadership changes and a series of controversies in which the agency’s scientific principles appeared to be overridden by political interests, including those of Health Secretary Robert F. Kennedy Jr.

The FDA commissioner, as the leader of an agency that regulates billions of dollars in consumer goods and medicines, is often required to juggle competing priorities that straddle science and politics.

Makary faced a unique challenge in balancing calls by Trump and other Republicans to cut red tape at the FDA, while also tending to Kennedy’s interest in scrutinizing the safety of vaccines, drugs and food additives.

Virtually all of the FDA’s senior career officials resigned, retired or were forced out in the first year of the second-term Trump administration, leading to a steady stream of leaks and negative stories in the media cataloging low morale, dysfunction and frustration among staff.

Makary’s handpicked deputy, Dr. Vinay Prasad, was pushed out of the agency twice in less than a year for running afoul of specialty drugmakers and groups for patients with rare diseases. Makary appeared poised to weather the controversy, despite an ongoing pressure campaign calling on Trump to fire him.

Recent months brought fresh criticisms from other interest groups that the White House considers key to Republican chances in November elections.

Anti-abortion groups have criticized Makary for allegedly slow-walking an internal review of the abortion pill mifepristone, which has been on the market for 25 years but remains a target for conservative activists.

Vaping executives told Trump that Makary was blocking approval of their products, including new flavored e-cigarettes seen as crucial to the industry’s survival.

Last week, the agency abruptly changed course on vaping: authorizing the first fruit-flavored products and issuing guidelines that loosened marketing for major manufacturers. But it wasn’t enough to keep Makary in the job.

A permanent replacement for FDA commissioner will need to be nominated by Trump and confirmed by a majority vote in the Senate.

Faster drug reviews are overshadowed

As a former regular on Fox News, Makary was aggressive about promoting his accomplishments on cable television and podcasts and in online opinion pieces.

More than a half-dozen initiatives from Makary aimed to speed up or streamline FDA drug reviews, including dropping certain study requirements, incorporating artificial intelligence into drug evaluations and offering expedited reviews to medicines that support “national interests.”

But pharmaceutical executives rely on the predictability and consistency of FDA decisions, even more than speedy reviews. Makary’s efforts on drug reviews were overshadowed by internal conflicts and upheavals that created headaches for drugmakers, investors and patients.

A number of specialty drugmakers studying therapies for rare or hard-to-treat diseases said they received rejection letters or requests to run additional studies for drugs that previously had been given the go-ahead by FDA staff. Those drugs were primarily overseen by Prasad, who stepped down for a second time from his role as FDA’s vaccine and biotech chief in April.

Vaccine moves denounced

Prasad repeatedly overruled vaccine staffers to restrict eligibility for new COVID shots. In February, Prasad initially refused to even consider Moderna’s mRNA shot for flu. The FDA was forced to reverse itself after Moderna pledged to formally challenge the decision and called for intervention by the White House.

Some of Makary and Prasad’s most controversial vaccine proposals never came to fruition, despite stoking confusion and anxiety within the FDA and beyond.

In an internal memo in November, Prasad claimed — without publishing evidence — that the FDA had linked COVID shots to the deaths of 10 children. Prasad used that to justify a planned wholesale overhaul of the agency’s approach to approving and updating vaccines.

A dozen former FDA commissioners issued a scathing denunciation of the plan, warning that it would “undermine the public interest” and decimate vaccine development. The FDA has not released its analysis of the deaths or its plan for the vaccine overhaul.

FDA’s drug center had a revolving door

In the FDA’s drug center, which is the agency’s largest division, Makary oversaw a revolving door of leadership changes. Six people served as director over the course of one year.

Makary’s initial pick for the job, Dr. George Tidmarsh, was forced to resign after allegations that he used his FDA position to pursue a personal vendetta against a former business partner.

His replacement, longtime FDA cancer specialist Dr. Rick Pazdur, announced he would retire after just three weeks on the job, after clashing with Makary on multiple issues involving drug reviews.

With Makary’s departure, the fate of many fledgling initiatives is uncertain.

Most of the programs Makary introduced have not gone through federal rulemaking required to enshrine them in U.S. regulations and could easily be overturned by his successors.

Democrats in Congress have questioned the legality of some of those efforts, including a program that offers drugmakers expedited reviews for innovative medicines.

Perrone and Kim write for the Associated Press.