Tuesday, June 18, 2024

Trade associations find themselves in the anti-China crosshairs

Delivered daily, Influence gives you a comprehensive rundown and analysis of all lobby hires and news on K Street.
Jun 18, 2024 View in browser
 
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By Caitlin Oprysko

With Daniel Lippman

PROGRAMMING NOTE: We’ll be off tomorrow for Juneteenth but will be back in your inboxes on Thursday.

TREND ALERT: More than half a dozen lobbying firms dumped Chinese clients earlier this year after PI reported that congressional offices were threatening to blacklist them for working for companies linked to the Chinese military. And as distrust of the Chinese government reaches a fever pitch in Washington on both sides of the aisle, companies with roots in the country — or suspected links to the Chinese Communist Party — are rapidly finding themselves without allies to make their case to lawmakers, your host reports.

— The pressure campaign is now turning to Washington’s trade associations, with several major industry groups including NetChoice and BIO buckling under demands to boot China-linked members when faced with congressional inquiries.

— It’s a marked change from even a few years ago, when the Chinese telecom giant ZTE was able to hire major names like former Sens. Norm Coleman and Joe Lieberman to defend it in Washington as it fought to stay off of federal blacklists.

Craig Singleton, director of the China Program at the Foundation for Defense of Democracies, expects the trend to ripple across a number of tech-adjacent sectors — especially industries China is looking to dominate such as telecom, electric and autonomous vehicles, batteries and drones.

— If anything, Congress’ surprise success in pushing a TikTok divest-or-ban bill across the finish line in April may act as a galvanizing force for lawmakers to target Chinese companies with exponentially less risk for political blowback. And if members opt to try to replicate their covert TikTok push, that will require trade groups to be especially discerning.

— “Every single tech industry group, every single industry group that has Chinese company membership and participation is … in a state of analyzing” its potential risk exposure, said Singleton.

— The Chinese government itself has lost all its U.S. lobbyists after Squire Patton Boggs, the last lobbying firm registered to work for a formal arm of the Chinese government, parted ways with China’s U.S. Embassy as of the end of 2023 after nearly two decades, according to DOJ filings.

— But all hope is not lost for Chinese-linked companies looking for allies in Washington. Even as some firms raced to sever ties with their controversial clients and others swore off Chinese clients altogether, another subset of lobbying shops swooped in to save the day.

— It’s a series of events that “looks eerily similar to the backlash the Saudi lobby faced following the murder of Jamal Khashoggi,” said Ben Freeman, director of the Democratizing Foreign Policy program at the Quincy Institute for Responsible Statecraft, noting that “the Saudi lobby slowly but surely came roaring back and is, arguably, as influential as ever.” He expects China to chart a similar path.

Happy Tuesday and welcome to PI. Send tips: coprysko@politico.com. And be sure to follow me on X: @caitlinoprysko.

 

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HILL REPUBLICANS DEFEND RESTAURANT FEES: Republicans across the Hill are rushing to the defense of the restaurant industry in restaurants’ fight with the Biden administration over so-called junk fees. Nearly three dozen House Republicans and seven Republican senators dashed off letters to the FTC in the past week, warning that its plan to crack down on fees across a variety of industries is too sweeping.

— “We continue to be concerned with the broad scope of transactions deemed as ‘junk fees,’” the lawmakers wrote, arguing that “there are well-established, transparent fees, particularly in the restaurant context that serve specific business purposes for the betterment of the consumer and business owner.”

— FTC’s proposal “mischaracterizes all restaurant fees and surcharges as ‘junk fees’ that must be included within a ‘total price’ for each menu item,” they argued, positing that the current rule would force restaurants to “significantly raise prices in order to comply.”

— The letters single out charges like delivery fees, automatic gratuity for large parties and service charges in lieu of tips — surcharges that the National Restaurant Association implored FTC to preserve in its own comments on the junk fee proposal in February. Disclosure of “well-established business practices,” the lawmakers argued, “helps clarify for the consumers the additional cost of providing the service they are requesting,” and should be allowed to continue.

WHO’S BANKROLLING GOP GREEN GROUPS: “Conservative climate change advocates may not see eye-to-eye with their liberal counterparts on a host of issues, but they do share something important,” per E&E News’ Timothy Cama and Kelsey Brugger: where their cash comes from.

— “Philanthropic donors like Bill Gates’ Breakthrough Energy Foundation, the Charles Stewart Mott Foundation and the MacArthur Foundation that fund Democratic-aligned green groups like the League of Conservation Voters are also spending millions on ‘eco-right’ groups — as they are commonly known — according to an analysis by POLITICO's E&E News.”

— “The conservative groups, such as Citizens for Responsible Energy Solutions and the American Conservation Coalition, eschew policies like regulation and big spending to fight climate change. They dismiss such actions as partisan ideas that won’t spur innovation to transform the planet. And donors are fine with that,” arguing that “funding both political sides is a strategy to make climate legislation more durable.”

MCCARTHY’S NEW GIG: Former House Speaker Kevin McCarthy has made his first move in the private sector since leaving Congress, joining the advisory board of C3 AI, an AI software provider that does defense and intelligence work, to act as a strategic adviser and to further the company’s “expansion of AI solutions among all levels of government (ranging from local/state to federal), as well as foster relationships with allied nations,” per a press release.

— The company registered its first lobbyists last summer and hired the McCarthy-allied CGCN Group earlier this year, making the addition of the former speaker a key step in building out its presence in Washington.

TIM'S TEST: "Few politicians know how to win over a billionaire like Tim Scott does. An event Wednesday in Washington will test whether he can leverage that clout to become Donald Trump’s running mate,"
Bloomberg's Ben Steverman and Amanda Gordon write.

— "The policy summit-cum-fundraiser on the Juneteenth holiday will include some of the world’s wealthiest people: Citadel’s Ken Griffin, Apollo’s Marc Rowan, Pershing Square’s Bill Ackman and venture capitalist Marc Andreessen are all featured speakers on topics ranging from tax policy to crypto."

— "Sponsored by Scott’s political advocacy group, Great Opportunity Policy Inc., and seeking donations of up to $250,000, the gathering shows the powerful network the former presidential candidate has built — and the money he can potentially attract. ... It also comes at a pivotal time for the South Carolina senator, who is the closest he’s ever been to realizing a dream 30 years in the making: becoming vice president. As the veepstakes heats up, his best shot at winning Trump’s approval may come from his ability to charm billionaires who’ve been hesitant to endorse the controversial former president."

IN CASE YOU MISSED IT: “A former oil CEO at the center of a price-fixing scandal has turned to one of the most prominent lobby shops on K Street,” per Tim and E&E News’ Kevin Bogardus. “Scott Sheffield, who was the founding chief executive of Pioneer Natural Resources, has hired Brownstein Hyatt Farber Schreck to advocate on his behalf, according to recently posted disclosure records.”

— “Last month, the Federal Trade Commission claimed Sheffield coordinated with OPEC officials via text messages and private discussions to keep oil production low. The agency approved the sale of Pioneer to Exxon Mobil but barred him from serving on its board. Sheffield has denied the allegations. His lawyers have said he has been ‘unjustly smeared’ by the FTC and have pushed the agency to withdraw its complaint.”

— Brownstein began working for Sheffield on May 29 on “issues related to the FTC,” and the team working on the account includes firm founder and Chair Norm Brownstein; former McCarthy aide Will Dunham; Marc Lampkin; former House Oversight aide Bill McGrath; and former DOJ official Will Moschella.

Jobs report

— The U.S.-China Business Council has tapped Rich Harper to lead its government affairs team in D.C. He spent the past 10 years with the Outdoor Industry Association, most recently as director of government affairs, and is a Dianne Feinstein alum.

Abid Qureshi and Daniel Walsh have been elected co-chairs of Akin Gump Strauss Hauer & Feld starting next April. They will succeed Kim Koopersmith, who has served as chair since 2013.

James Weingarten has joined Milbank LLP as a partner in the firm’s antitrust and competition group. Weingarten was most recently chief trial counsel for the FTC’s Bureau of Competition.

Brad Wood is joining the National Foreign Trade Council as senior director for trade and innovation policy. He previously served as trade program manager for innovation and industrial policy and the U.S. representative for Innovation, Science and Economic Development at the Canadian Embassy.

Govini hired Pete Modigliani as a senior adviser. He was previously a vice president at Beacon Global Strategies.

Leif  Larson is now director of communications and public relations at Shared Hope International. He previously was a managing director at FP1.

National Chicken Council President Mike Brown will retire after 13 years leading the trade group. Gary Jay Kushner will be the group's interim president.

Mari Manoogian is joining the Biden campaign as battleground political and coalitions director for the Midwest. She’s taking a leave of absence from her role as political director at The Next 50.

Shawn Whyte is joining Diageo as government relations manager. He most recently was federal government affairs manager at Walmart.

Justin Kintz is joining Forbes Tate Partners as a partner on its government relations team to oversee international and technology work. He most recently created and led Peloton Interactive’s government affairs, and is an Uber alum.

Meira Bernstein is now senior adviser for comms at NASA. She most recently was at FGS Global and is a DHS and Biden 2020 alum.

Rose Feliciano has been named TechNet’s new executive director to oversee its advocacy in Washington state and the Northwest.

New Joint Fundraisers

Pennsylvania Victory Fund 2024 (Mackenzie for Congress Committee, Rob for PA, Mercuri for Congress, Republican Federal Committee of Pennsylvania, NRCC)

Slotkin Schiff Alsobrooks Victory Fund (Reps. Elissa Slotkin, Adam Schiff, Alsobrooks for Senate)

New PACs

IMWU SUPER PAC (Super PAC)

Inland Empire Local Voice PAC (PAC)

Wicomico Democrats for Democracy (PAC)

New Lobbying REGISTRATIONS

Avoq, LLC (Fra Team Subject Matter, LLC): Science Corporation

Brownstein Hyatt Farber Schreck, LLP: Sierra Northern Railway & Sierra Energy Corporation

Ervin Graves Strategy Group, LLC: Chenega Supply Chain Solutions, LLC

Murray, Montgomery & O'Donnell: City Of Mountain View

Patel Partners: Form Energy

Relation Strategy, LLC: Akin Gump Strauss Hauer & Feld (Obo 1-800 Contacts)

Relation Strategy, LLC: Akin Gump Strauss Hauer & Feld (Obo Gila River Indian Community)

Relation Strategy, LLC: Akin Gump Strauss Hauer & Feld (Obo USs Constitution Museum)

The Conafay Group, LLC: Rosalind Franklin University Of Medicine And Science

The Daschle Group: Heimdal, Inc.

Tides Group, LLC: Redbird Capital Partners Management LLC

Tiger Hill Partners LLC: Federal Home Loan Bank Of Atlanta

New Lobbying Terminations

Rulon & White Governance Strategies: International Outdoor

 

JOIN US ON 6/26 FOR A TALK ON AMERICA’S SUPPLY CHAIN: From the energy grid to defense factories, America’s critical sites and services are a national priority. Keeping them up and running means staying ahead of the threat and protecting the supply chains that feed into them. POLITICO will convene U.S. leaders from agencies, Congress and the industry on June 26 to discuss the latest challenges and solutions for protecting the supply lines into America’s critical infrastructure. REGISTER HERE.

 
 
 

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