What does Preamble of Economic Espionage Prevention Act do?

This bill aims to impose sanctions related to economic or industrial espionage by foreign adversarial companies. The bill was received in the Senate on May 6, 2025, and referred to the Committee on Foreign Relations.

What does SHORT TITLE. of Economic Espionage Prevention Act do?

This bill is formally titled the Economic Espionage Prevention Act

What does FINDINGS. of Economic Espionage Prevention Act do?

This section outlines findings related to exports from the People's Republic of China to Russia. According to the Department of State, China's exports of semiconductors to Russia increased substantially since Russia's invasion of Ukraine. The exports include both Chinese and United States-branded semiconductors, potentially supporting Russia's military capabilities. China also exported significant amounts to transshipment hubs. Nearly all chips produced worldwide, including in China, are subject to U.S. export controls if destined for Russia or Belarus. Advanced semiconductors have been subject to a license requirement if destined for Russia since its invasion of Ukraine. Deputy Secretary of State Kurt Campbell stated that Russia has reconstituted militarily, posing a threat to Ukraine and potentially to European stability and NATO allies.

What does REPORT. of Economic Espionage Prevention Act do?

This section requires a report on foreign persons or entities from China involved with Russia's defense or intelligence sectors. The report must be submitted to congressional committees within 90 days of the Act's enactment. The report includes analysis of transactions and deliveries of critical components to Russia or its allies.

What does IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC OR INDUSTRIAL of Economic Espionage Prevention Act do?

This section outlines the imposition of sanctions against foreign persons determined by the President to be foreign adversary entities. Sanctions may be imposed 30 days after the Act's enactment. Foreign persons are subject to sanctions if they engage in economic or industrial espionage, provide support to foreign adversaries' entities, or violate U.S. export control laws. Sanctions include property blocking and visa ineligibility/revocation. Exceptions exist for authorized intelligence activities, compliance with international obligations, and law enforcement activities. The President may waive sanctions for up to 180-day periods if deemed in the national security interest. Violations of this section's provisions are subject to penalties under the International Emergency Economic Powers Act. The President must establish procedures and guidelines for sanctions implementation and enforcement. The President is required to submit an annual report on economic or industrial espionage activities unless sanctions were imposed in the previous year.

What does IMPORTATION OF GOODS EXCEPTION. of Economic Espionage Prevention Act do?

This section establishes an exception for the importation of goods from sanctions. The term 'good' is defined to include various articles and products, excluding technical data.

What does DEFINITIONS. of Economic Espionage Prevention Act do?

This section defines key terms used throughout the Act. “Appropriate congressional committees” are defined as the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. “Economic or industrial espionage” and related terms like “own,” “proprietary information,” and “trade secret” are defined by reference to section 1637(d) of the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015. “Foreign person” is defined as any person that is not a United States person. “Knowingly” means having actual knowledge or should have known. “Person” is defined as an individual or entity. “United States person” includes United States citizens, aliens lawfully admitted for permanent residence, and entities organized under U.S. laws. “Foreign adversary” is defined by reference to section 7.4 of title 15, Code of Federal Regulations.

Back to bills

Economic Espionage Prevention Act

Last updated: 5/6/2025 · Introduced: 2/21/2025

Author: Richard McCormick (R-GA)

TL;DR (AI)

The bill imposes sanctions on foreign persons or entities that engage in economic or industrial espionage, provide support to foreign adversaries' entities, or violate U.S. export control laws.
The President is required to submit an annual report on economic or industrial espionage activities, unless sanctions were imposed in the previous year, and may waive sanctions for up to 180-day periods if deemed in the national security interest.
The bill requires a report to be submitted to congressional committees within 90 days of enactment, analyzing transactions and deliveries of critical components to Russia or its allies, particularly from China.

119th Congresspassed houseOfficial page

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Other Sections

Includes provisions on preamble, short title., and 5 more.

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