The House Committee on Small Business held a hearing on Mar. 25 to discuss the risks posed by foreign adversaries, particularly the Chinese Communist Party (CCP), to American small businesses and explore solutions for protecting them.
The issue is considered important because small businesses are seen as vital to both economic strength and national security. The committee focused on how the CCP may target entrepreneurs, steal intellectual property, and undermine innovation.
Chairman Roger Williams said, “Defending Main Street from emerging threats is pivotal to preserving our economic strength and national security.” He added, “The CCP is actively working to undermine and exploit America’s small businesses—posing serious risks for entrepreneurs and threatening American innovation. This Committee will continue to work with Administrator Loeffler to ensure that small businesses have access to safe, trusted capital and the resources they need to secure and strengthen supply chains. We must remain vigilant in safeguarding Main Street and the entrepreneurial spirit that drives our nation.”
During the hearing, witnesses discussed methods used by foreign actors like the CCP. Mr. Lyons said cyberattacks are common ways intellectual property is stolen from U.S. companies, followed by insider threats involving programs such as Thousand Talents. He also mentioned that due diligence processes used by venture firms can result in siphoning of sensitive information.
Lawmakers asked about possible steps Congress could take. Mr. Murphy said making resources like loans from the Small Business Administration more accessible would help entrepreneurs deal with these challenges: “That’s where entrepreneurs right now—as an entrepreneur, I wouldn’t even have thought to go to the SBA…But for that to be a resource that entrepreneurs and small businesses can turn to that actually helps with capital and diligence across all these pieces.”
Mr. Pahutski suggested greater accountability within government agencies when addressing these issues: “So, I think it starts with accountability...having trusted capital programs do an amazing job…illuminating those supply chains…providing a list of trusted vendors and sources is also a critical step in this.”
As concerns over foreign influence continue, committee members indicated they will seek further action aimed at helping protect America’s small business sector.
