Asia, Biden transition, Business & trade, New in Lobbying, US-China tensions

TikTok picks up former US Sens. Lott and Breaux for post-Trump era

The US subsidiary of Chinese viral video app TikTok has hired its first former members of Congress as it seeks to scroll past the Donald Trump era.

Ex-Sens. Trent Lott (R-Miss.) and John Breaux (D-La.) of Crossroads Strategies will lobby on “internet technology and learning-enabled content platforms” for California-based TikTok Inc., according to a new lobbying filing. The registration was effective Dec. 7.

Also lobbying on the account are Crossroads Executive Vice Presidents Ben McMakin and Sam Adcock. McMakin is a former legislative director for Sen. Patty Murray (D-Wash.), the third-most senior Democrat in the Senate.

This marks the first lobbying hire for TikTok itself. Four other firms lobby for parent company ByteDance: Monument Advocacy, K & L Gates, Mehlman Castagnetti and American Continental Group. That’s on top of ByteDance’s in-house lobbying, which topped $1.5 million in the first three quarters of 2020 (see chart below).

The new push comes as TikTok has gotten a reprieve from this summer’s demand by the Trump administration that ByteDance sell the app, citing concerns that US users’ data could be shared with the Chinese government. This past week the US government extended the deadline in a court battle with TikTok until Feb. 18, kicking the issue over to the Joe Biden administration.

Biden shared few specifics about his approach to Chinese technology companies during the presidential campaign, but many of his advisers share Trump’s concerns about unfair trade practices. The president-elect himself called Chinese President Xi Jinping a “thug” last year. And the Biden campaign has labeled China’s discrimination against its Muslim Uyghur minority “genocide.”

Crossroads’ hiring brings to at least six the number of former members of Congress registered to lobby for Chinese technology companies. Others include:

  • Former House Foreign Affairs Committee Chairman Ed Royce (R-Calif.), who is lobbying for tech conglomerate Tencent and image sensor manufacturer Omnivision via Brownstein Hyatt Farber Schreck;
  • Former Sen. David Vitter (R-La.), a Mercury Public Affairs lobbyist for video-surveillance company Hikvision;
  • Former Rep. Peter Roskam (R-Ill.), who lobbies for cloud computing company Inspur via Sidley Austin; and
  • Former Rep. Jon Christensen (R-Neb.), who is helping smartphone maker OnePlus with visa applications via Appo-G.

Foreign Lobby Report analysis (see chart below) of lobbying filings reveals that at least 15 Chinese technology companies spent almost $16 million in lobbying and public relations in the first three quarters of 2020. That’s up from around $15.3 million for all of 2019, which itself dwarfed 2018.


READ MORE:

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China’s biggest chipmaker hires first US lobbying firm amid export restrictions



The lobbying surge has not been without controversy. Last week former Sen. Barbara Boxer (D-Calif.) said she would drop Hikvision after news of her involvement sparked a backlash. The company is accused of involvement in the surveillance of Uyghurs in the western province of Xinjiang.

ByteDance in particular has been ramping up its US presence in recent months to push back against political and economic threats to its popularity with young people, a coveted demographic. The company claims 100 million active monthly users in the US.

Former Walt Disney executive Kevin Mayer became the company’s first chief executive in June but quit after 100 days. Michael Beckerman, a former president of the Internet Association, continues to run the company’s in-house lobbying team, which also includes:

  • David Urban, a senior adviser to the 2016 Trump campaign and former chief of staff to former Sen. Arlen Specter of Pennsylvania;
  • Michael Bloom, a former senior aide to House Speaker Nancy Pelosi (D-Calif.);
  • Kim Lipsky, a former Democratic staff director of the Senate commerce panel; and
  • Edgar McConnell Abrams, a former chief of staff to ex-Sen. Dean Heller (R-Nev.).

TikTok is the second foreign client for Lott and Breaux since their acrimonious departure from Squire Patton Boggs in June 2020. They are also lobbying for the government of Alberta, the western Canadian province that is part-owner of the Keystone XL oil pipeline that Biden has vowed to block.

Read more: Canada province braces for fight with Biden over Keystone Pipeline

Lobbying by Chinese technology firms and their US affiliates

Company
Current lobbying issues
Influence firms
2020 spending
(Q1 – Q3)
2019 spending
(excluding subcontractors)
ByteDance

(Entertainment)
Parent company of TikTok

Targeted by President
Donald Trump
Executive Order
of Aug. 6, 2020
ByteDance
(in-house lobbying)

Covington & Burling

Monument Advocacy

K & L Gates

Mehlman Castagnetti

American Continental Group
$1.53 million


terminated

$330,000

$120,000

$300,000

$260,000
$270,000


$140,000

$100,000

$40,000

New in 2020

New in 2020
DJI Technology Inc.

(Drones)
Accused of human rights
abuses in Xinjiang

Added to Commerce Department
“entity list” restricting US
technology exports
to the company on Dec. 18, 2020
DJI Technology Inc.
(in-house lobbying)

K & L Gates

BGR Gov’t Affairs

Akin Gump

Cassidy & Associates

CLS Strategies
$1 million


$190,000

terminated

$240,000

$90,000

$10,000
$680,000


$240,000

$80,000

$40,000

New in 2020

New in 2020
Fujian Jinhua

(Semi-conductors)
Accused of intellectual
property theft

Added to Commerce Department
entity list in October 2018
Steptoe & Johnson

Brownstein Hyatt Farber Schreck

Jim Handy

Blueprint Communications
$210,000

$360,000

Unknown

$17,500/month
$240,000

$670,000

Unknown

New in 2020
Hikvision

(Video
Surveillance)
Accused of human rights
abuses in Xinjiang

Added to Commerce Department
entity list in October 2019
Sidley Austin

Glover Park Group

Mercury Public Affairs

Burson-Marsteller (public relations)
$1.5 million

terminated

$767,000 (Jan. – June)

$1.04 million (Jan. – June)

$640,000

$240,000

$1.4 million

$820,000
Huawei Technologies

(Tele-
communications)
Accused of being a threat
to US national security

Added to Commerce Department
entity list in May 2019

Designated a national security threat
by the Federal Communications
Commission in June 2020
Huawei Technologies USA
(in-house lobbying)

Jones Day

Racepoint Global (public relations)

Steptoe & Johnson

Sidley Austin

Squire Patton Boggs

Pivot Integrated Communications


Ruder Finn
(public relations)
$450,000


$0*

$2.4 million

$160,000

$0*

$380,000

$964,000
(terminated)

Unknown**
$2.99 million


$60,000

$1.05 million

$210,000

$0*

$230,000

$282,000


New in 2020
iFLYTEK

(Voice recognition)
Accused of human rights abuses
in Xinjiang

Added to Commerce Department
entity list in May 2019
Chartwell Strategy Group

Pillsbury Winthrop Shaw Pittman
$300,000


$753,000 (Feb-July)
$150,000


$865,000
(through Jan. 2020)
Inspur Group

(Cloud computing)
Added to list of Department
of Defense list of “Communist
Chinese military companies”
in June 2020
Sidley Austin
Unknown
No lobbying
Lenovo

(Computers)
Dutko Worldwide
$100,000
$260,000
Lexmark

(Printers)
Richard Goodstein

Venn Strategies
$120,000

$120,000
$160,000

$0*
Omnivision
Technologies


(Image sensors)
Approved to sell image
sensors to Huawei in Oct. 2020
Brownstein Hyatt Farber Schreck
Unknown
No lobbying
OnePlus

(Smartphones)
APPO-G
Unknown
No lobbying
Riot Games

(Video games)
Owned by Tencent (see below)
Platinum Advisors
$150,000
No lobbying
Semiconductor
Manufacturing
Int’l Corp (SMIC)


(Semi-conductors)
Accused of ties to entities
of concern in the Chinese
military industrial complex

Added to Commerce
Department “entity list” restricting
US technology exports to the
company on Dec. 18, 2020
Akin Gump


Capitol Counsel (via Akin Gump)
$50,000

Unknown
No lobbying
Tencent

(Tech conglomerate)
Parent company of WeChat app

Targeted by President Donald
Trump’s executive order of
Aug. 6, 2020
Tencent Holdings (in-house lobbying)

Paul Weiss Rifkind Wharton & Garrison

Toby Myerson

Brownstein Hyatt Farber Schreck
$500,000


$210,000


$150,000

$130,000
No lobbying
ZTE Corporation

(Tele-
communications)
Designated a national security
threat by the Federal
Communications Commission in June 2020
ZTE USA (in-house lobbying)

APPO-G

Hogan Lovells

Akin Gump
$30,000

$50,000

terminated

$850,000
$120,000

$150,000

$2.94 million

$80,000
* $5K or less per quarter
** Huawei signed a year-long, $1.45 million contract with Ruder Finn at the end of October

Source: Lobbying Disclosure Act (Congress) / Foreign Agents Registration Act (Department of Justice)

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