Senate panel debates tighter SBIR safeguards as witnesses warn of Chinese tech theft

The Senate Committee on Small Business and Entrepreneurship heard detailed testimony from policy experts and researchers warning that China is exploiting U.S. innovation ecosystems and federal small-business research programs, and lawmakers debated legislative and administrative ways to tighten safeguards.

The committee's chair, Senator Joni Ernst, framed the hearing as part of an effort to "lock down our innovation pipeline," citing a range of threats including investment, talent-recruitment programs and industrial espionage. Ernst said a U.S. Trade Representative and FBI estimate places annual intellectual-property losses to China between $225 billion and $600 billion, and she told the panel her recent report found that "64% of applications flagged for foreign risk were still eligible to receive taxpayer dollars." Ernst also noted she introduced the Innovate Act to standardize foreign-ties due diligence across federal programs.

Why it matters: The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs award federal funds intended to help startups and small firms move research from prototype to…