US-China Tensions Drive Lobbying Work for D.C.'s Big Law Firms

Big law firms’ lobbying shops in Washington continue to be flushed with business in 2023, fueled by annual funding bills and increasing tension between the US and China.

Brownstein Hyatt, whose largest clients include private equity firm Apollo Global Management, raked in $15.7 million in fees for federal lobbying work in the second quarter, according to public filings. That was the highest total among lobbying shops, down slightly from the $15.8 million the firm tallied in the previous quarter.

Two other major law firms were also at the top of the list. Akin earned $13.4 million in federal lobbying revenue, its fourth straight quarter eclipsing the $13 million mark. Holland & Knight reported $12 million in lobbying revenue over the three-month stretch, a 12% increase from the first quarter.

Companies are increasingly turning to lobbyists to navigate international trade and investment regulations complicated by tensions between the US and China.

Regulatory work has “really ramped up,” said Brian Pomper, an Akin partner and former a Senate Finance Committee aide.

“The best example is China,” Pomper said. “There’s just so much going on for companies who are focused on either trying to defend their existing supply chains or investments. At the same time, we’re working with companies trying to take advantage of it for competitive reasons.”

Akin during the second quarter earned $230,000 in fees from San Diego-based tech giant Qualcomm Inc. The firm lobbied on competition and “outbound investment,” among other areas, as the Biden administration considers a policy restricting investment in certain industries in China.

Squire Patton Boggs, which represents many foreign entities, earned $5.8 million for federal lobbying in the second quarter, roughly even with its first quarter revenue.

An “unprecedented deployment of export controls, sanctions and other economic trade policies have broad implications for businesses and continue to drive activity for our teams,” said Ed Newberry, the firm’s public policy leader.

K&L Gates posted $4.1 million in second quarter lobbying revenue, down from $5.5 million between January and March. Hogan Lovells, meanwhile, reported about $2.5 million in revenue, up from $2 million in the first quarter.

‘A Lot to Finish’

Lawmakers are expected in the coming months to focus on annual spending legislation, including a sweeping measure to fund the Defense Department. They’re also jostling over longer-term measures, like the Farm Bill and a Federal Aviation Administration reauthorization.

“There’s an acknowledgment that fewer bills are getting across the finish line” because of the divided Congress, said Karishma Page, a leader of K&L Gates’ public policy practice. Those that are likely to pass are “carrying a much broader issue set,” which companies are honing in on, she said.

Pomper added that Congress has “a lot of stuff they’re going to try to finish,” suggesting activity will see little slowdown in the second half of the year.

Akin’s biggest lobbying clients during the quarter included the Gila River Indian Community ($710,000) and the Americano Media Group ($400,000).

Other notable contracts from law firms include Covington & Burling earning $390,000 from Intellectual Keystone Technology, a group formed by South Korea-based Samsung in 2013. The firm advocated on intellectual property and supply chain issues in the “display industry,” according to a lobbying disclosure.

DLA Piper, a longtime lobbyist of the PGA Tour, also received $160,000 during the quarter in which the golf league announced a planned merger with the Saudi-backed LIV Golf Circuit. The firm lobbied on “oversight of golf league proposals,” per a filing.