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That regulation would say what counts as trying to hire natives first.

Yes, and because the underlying concept is economically meaningless, the regulation can't possibly do what it sets out to do. So companies, quite reasonably, wind up using loop holes.

And it won't say the company has to try hiring the employees of other companies.

So what is there are actually two native employees with the relevant skills but one is working at a lower skill engineering job that doesn't require those skills? What if he's working at a low skill non-engineering job, say pumping gas, because he can't find an engineering job for someone with his skills?