Why it Matters

American small businesses are caught in a vise: the Chinese Communist Party's economic practices are squeezing them from one side, and the tariffs designed to counter those practices are squeezing them from the other. The House Small Business Committee is convening on March 25, 2026, to examine CCP small business threats head-on — a hearing titled "Defending Main Street: Combating CCP Threats to America's Small Businesses" that arrives at a moment when the data on both the threat and the cost of fighting it has become impossible to ignore.

A JPMorgan Chase Institute analysis reported by Fortune found that while tariffs have reduced U.S. midsize firms' outflows to China by roughly 20 percent since 2024, monthly tariff payments by those same firms have tripled compared with early 2025 levels. A Federal Reserve report covered by Reuters confirmed that small firms faced significant tariff-related price pressures over the past year. The Defending Main Street hearing is designed to probe whether Congress can protect small businesses from Chinese threats to American small businesses without crushing them under the weight of the countermeasures.

The Threat Landscape Driving the Hearing

Trade Competition and Tariff Costs

The core tension animating this congressional hearing on CCP in 2026 is straightforward: China small business competition is real, but so is the collateral damage from the U.S. response. Small businesses lack the supply chain flexibility and financial reserves that large corporations use to absorb or redirect tariff costs. The JPMorgan data — showing tripled tariff payments — suggests that Main Street is bearing a disproportionate share of the decoupling burden.

Intellectual Property Theft and Cyber Threats

Beyond trade, the Chinese Communist Party's impact on the US economy extends into intellectual property theft and cyber-espionage. Fox News reported on China's systematic IP theft campaign, noting indictments of Chinese nationals for cyber-espionage against U.S. companies and dozens of prosecutions under the DOJ's China Initiative for trade secret theft. The piece called for stronger defenses, particularly for smaller firms with limited cybersecurity resources.

A CyberUnit report detailed the intensifying cyber threat landscape for U.S. small businesses in 2026, noting that small businesses often serve as vendors and contractors to larger organizations — making them attractive targets for state-sponsored actors. The report noted that many small business owners face "enterprise-level threats with small-business resources."

Broader Congressional Action on CCP Economic Access

The Watch Journal reported that Congress has already moved to curb CCP access to sensitive U.S. economic sectors — including quantum computing, semiconductors, and AI — through defense legislation. Craig Singleton of the Foundation for Defense of Democracies told the publication that "Capitol Hill is locking in a hard-edged, long-term competition with Beijing." The Small Business Committee hearing extends that posture from defense and technology sectors into the broader Main Street economy.

Lobbying Activity Reflects the Stakes

The past year of lobbying disclosures shows that the intersection of CCP threats and American small businesses has drawn sustained attention from a range of corporate and advocacy interests.

CRRC MA Corp., a subsidiary of a Chinese state-owned enterprise, filed lobbying disclosures across the first three quarters of 2025 — making it a direct example of CCP-linked business activity in the U.S. that the hearing is likely to scrutinize.

First Solar Inc. filed three lobbying reports between the first and third quarters of 2025, focused on CCP trade threats and Chinese competition in clean energy manufacturing. PayPal Inc. filed disclosures across three consecutive quarters through the fourth quarter of 2025, lobbying on issues related to Chinese fintech and e-commerce competition affecting U.S. small business sellers.

Faire Wholesale Inc., a marketplace for independent small businesses and boutique retailers, filed two lobbying reports on China trade issues before terminating its registration in the second quarter of 2025. The Economic Security Project Action Inc. filed three reports between the second and fourth quarters of 2025 focused on economic security and foreign threats.

Of these organizations, First Solar, PayPal, and Las Vegas Sands maintain active political action committees. None of the PAC contributions identified in FEC records over the past two years went directly to members of the House Small Business Committee.

The Hearing Details

The hearing is chaired by Rep. Roger Williams (R-TX-25), with Rep. Nydia Velázquez (D-NY-7) serving as ranking member and Rep. Morgan McGarvey (D-KY-3) as vice ranking member. A public notice has been posted. The committee includes 27 members — 15 Republicans and 12 Democrats — spanning delegations from Texas, New York, California, Pennsylvania, Minnesota, and beyond.

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