Alibaba (HKG:9988) and Tencent (HKG:0700) are losing Washington lobbyists after both companies were added to the Pentagon's list of "Chinese military companies."

Lobbying disclosures filed over the past week show Alibaba has lost five firms and Tencent has lost four, including Brownstein Hyatt Farber Schreck, Mercury Public Affairs and MO Strategies, all of which previously represented both companies.

The departures come as new U.S. restrictions force lobbying firms to choose between representing Chinese clients and U.S. defense contractors.

The companies were designated under the Pentagon's Section 1260H list, which identifies entities the Defense Department alleges have links to China's military or support military-civil fusion efforts.

Under a law taking effect Tuesday, the Defense Department will be barred from working with contractors represented by lobbyists who also represent companies on the Section 1260H list.

Alibaba and Tencent have denied ties to China's military. Alibaba has sued the U.S. government seeking removal from the list, arguing the designation has "no basis in fact or law."

In its lawsuit, the tech giant also said the new lobbying restrictions "has already resulted in several firms and lobbyists indicating that they will end their relationship with Alibaba."

Tencent and Alibaba did not immediately respond to MT Newswires' request for comment regarding the lobbyist move.