(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 is ¹ 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.).