As far as I understand, companies are generally free to make their own hiring decisions, so long as they do not amount to discrimination against a protected class. That limitation, by the way, stems from federal legislation--so companies are very much not extra-legal entities operating without any judicial accountability. If a state or federal Congress decide to further regulate companies' hiring decisions, they are free to do so.
I don't understand what exactly you would like companies to do: Simply ignore potential security risks? Do you have a specific process you advocate should be used to evaluate risks? What different kind of restrictions on companies' personnel decisions would you like to see? Do you just have a problem with a focus on risk from family members in PRC as opposed to a broader vetting process where that is only one risk factor?
> Security clearances are actually defined by law
I am not sure that an exact formula for grant/deny decisions exists in statute. These decisions strike me as inherently subjective, although certain facts are obviously pertinent to the decision. I would be very interested to read the relevant laws and regulations, though, if you'd be so kind as to point me to them.
Companies like Apple and others should be allowed to be concerned about theft of sensitive data just as much as the government. Just because it’s not a matter of national security doesn’t mean it’s okay.
Nobody here is trying to discriminate against a race. The problem is having ties to relatives living under a government that is known for making people disappear. The same would apply for a white person with many relatives there, etc.
Your argument of companies not being allowed to take cautionary steps against a foreign government doesn’t hold water.
They already are, with most disputes being settled with Binding Arbitration rather than via the court systems.
Others have already pointed out though, that a company needs to act in its own interests and one of the things it would certainly find interesting is whether an individual is capable of being coerced into sabotaging/sharing corporate trade secrets.
This has to do with companies making their own rules about what is right or wrong without any checks, balances, or voter feedback. Security clearances are actually defined by law, I’m against corporations becoming their own extra judicial entities.