# § 4663. Prohibition on contracting with covered entities that contract with lobbyists for Chinese military companies
**(a)** **Prohibition on Entering Into Contracts With Covered Entities.—** Except as provided in subsection (c), the Secretary of Defense may not enter into a contract with an entity, a parent company of such entity, or a subsidiary of such entity if such entity is a party to a contract with a covered lobbyist.
**(b)** **Exception.—** The prohibition in subsection (a) shall not apply with respect to an entity that made reasonable inquires regarding the lobbying activities of another entity and determined such entity was not a covered lobbyist.
**(c)** **Waiver.—** Upon notification to Congress, the Secretary of Defense may waive the requirements of this section.
**(d)** **Definitions.—** In this section:
**(1)** The term “covered lobbyist” means an entity that engages in lobbying activities for any entity determined to be a Chinese military company listed in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note).
**(2)** The term “lobbying activities” has the meaning given in section 1045(c) of the National Defense Authorization Act for Fiscal Year 2018 (10 U.S.C. 971 note prec.).
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**Source Credit**: (Added Pub. L. 118–159, div. A, title VIII, § 851(a), Dec. 23, 2024, 138 Stat. 1995; amended Pub. L. 119–60, div. A, title XVII, § 1701(a)(29), Dec. 18, 2025, 139 Stat. 1209.)
## Editorial Notes
### References in Text
Section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, referred to in subsec. (d)(1), is , which is set out as a note under .
Section 1045(c) of the National Defense Authorization Act for Fiscal Year 2018, referred to in subsec. (d)(2), is , which is set out in a note preceding .
### Amendments
2025—Subsec. (a). inserted “if such entity” before “is a party”.
## Statutory Notes and Related Subsidiaries
### Effective Date
> “This section [enacting this section] and the amendments made by this section shall take effect on
>
> .”
, , , provided that: