Bill Overview
Title: Protecting Our Homeland from Chinese Espionage Act
Description: This bill requires Department of Homeland Security (DHS) contractors to disclose relevant commercial ties with covered Chinese entities. DHS must terminate a contract with a contractor if, based on a disclosure required by this bill, DHS determines that continuation of the contract violates federal law or is not in the public's interest. The bill defines covered entity to include the Chinese government, the Chinese Communist Party, the Chinese military, and entities that have certain connections to China.
Sponsors: Rep. Harshbarger, Diana [R-TN-1]
Target Audience
Population: DHS Contractors with Chinese Commercial Ties
Estimated Size: 100000
- This bill directly affects contractors working with the Department of Homeland Security (DHS) who have commercial ties with certain Chinese entities.
- The contractors who are required to disclose their ties are a specific sub-group within the broader contracting sector.
- Chinese contractors or contractors with ties to Chinese entities will be particularly scrutinized, potentially affecting their business operations.
- The population indirectly affected includes employees of these DHS contractors, who might face job uncertainty if contracts are terminated.
- Entities in China that may experience indirect economic effects due to lost business with DHS contractors.
Reasoning
- The target population consists of DHS contractors with commercial ties to Chinese entities. This includes a mix of large and small businesses involved in sectors like technology, defense, and security. Not all contractors will be impacted equally, with some seeing no change due to having no relevant ties.
- The policy may have significant implications for the employed workforce of these contractors, potentially affecting job security and economic activities in local communities dependent on these businesses.
- The budget constraints suggest a focus on managing and terminating contracts rather than supporting associated economic transitions for displaced workers.
Simulated Interviews
Project Manager at a defense contractor (Virginia)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'm concerned about job security if contracts are terminated.
- I believe in national security but hope the policy considers the economic impact on employees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 5 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Owner of a tech startup (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- This policy doesn't directly impact me, but it could level the playing field against companies with unfair advantages.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Software Engineer (Texas)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I think our company might see some restructuring, but I'm hopeful my team won't be affected directly.
- National security is important, but so is job stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Supply Chain Analyst (New York)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm nervous about how our company's contracts with DHS might be affected.
- This policy might necessitate finding new business partners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Consultant (Maryland)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- Some of my clients are worried, which means I have to be adaptable to changing needs.
- This might actually increase demand for consultancy services like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Government Contractor (Washington)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I feel confident this won't impact us since we don't have ties with covered entities.
- It's a good move for national security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
DHS Policy Analyst (Massachusetts)
Age: 30 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is necessary in strengthening our national security.
- It's my job to ensure the smooth implementation of such policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
HR Manager at a mid-sized contracting firm (Michigan)
Age: 53 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Potential restructuring worries me especially for how it impacts employee morale.
- We must balance compliance with keeping our workforce steady.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 6 |
| Year 2 | 4 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Owner of a small IT firm (Florida)
Age: 48 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- I see this policy as a safeguard, our firm is unaffected directly.
- There's an opportunity to gain clients who need secure US-only solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Junior Analyst (Illinois)
Age: 26 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 9/20
Statement of Opinion:
- I hope this won't negatively affect job growth in our industry.
- It's good to be cautious but also support small businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $180000000 (Low: $140000000, High: $230000000)
Year 3: $160000000 (Low: $120000000, High: $210000000)
Year 5: $150000000 (Low: $110000000, High: $200000000)
Year 10: $130000000 (Low: $90000000, High: $170000000)
Year 100: $50000000 (Low: $30000000, High: $70000000)
Key Considerations
- The complexity of verifying contractor ties to Chinese entities and assessing the risk they pose.
- Potential legal challenges resulting from contract terminations.
- Impact on supply chains if surrogate contracting options aren't readily available.
- Balance between national security concerns and economic impacts on small and medium businesses.