[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1486 Engrossed in House (EH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1486
_______________________________________________________________________
AN ACT
To impose sanctions with respect to economic or industrial espionage by
foreign adversarial companies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Economic Espionage Prevention Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) On March 14, 2024, the Department of State notified
Congress of the following:
(A) People's Republic of China exports of
semiconductors to Russia have increased substantially
since Russia's full-scale invasion of Ukraine.
(B) In the second half of 2023, China exported
between $25,000,000 and $50,000,000 in additional
semiconductors to Russia every month relative to pre-
invasion levels.
(C) During the same period, China also exported
between $50,000,000 and $100,000,000 in additional
exports to Russia every month to known transshipment
hubs.
(D) These exports include both Chinese and United
States-branded semiconductors (integrated circuits),
according to analysis of commercially available trade
data by the Bureau of Industry and Security of the
Department of Commerce, and are almost certainly
supporting Russia's military capabilities based on
Ukrainian analysis of recovered Russian weapons.
(E) Because of the prevalence of United States
manufacturing equipment in global semiconductor supply
chains, nearly all chips produced worldwide, including
in the People's Republic of China, are subject to
United States export controls if destined for Russia or
Belarus.
(F) All advanced semiconductors described on the
Commerce Control List have been subject to a license
requirement if destined to an entity in Russia since
its further invasion of Ukraine.
(2) On April 3, 2024, Deputy Secretary of State, Kurt
Campbell, said ``I think we have assessed, over the course of
the last couple of months that Russia has almost completely
reconstituted militarily. And after the initial setbacks on the
battlefield delivered to them by a brave and hearty group in
Ukraine, with the support of China in particular, dual use
capabilities and a variety of other efforts, industrial and
commercial, Russia has retooled and now poses a threat to
Ukraine . . . But not just to Ukraine, its new found
capabilities pose a longer term challenge to stability in
Europe and threatens NATO allies.''.
SEC. 3. REPORT.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of State, in coordination with the
heads of relevant Federal departments and agencies, as appropriate,
shall submit to the appropriate congressional committees, a written
report that contains the following:
(1) An analysis and description of the extent to which any
foreign person who is a citizen of the People's Republic of
China or an entity organized under the laws of the People's
Republic of China, or any foreign person or entity controlled
by or operating at the direction of the Government of the
People's Republic of China--
(A) is knowingly a material source of critical
components necessary for the manufacture of weapons,
vehicles, and other military equipment by the defense
industrial base of the Russian Federation;
(B) has knowingly delivered critical components to
or entered into any agreement relating to the sale or
delivery of critical components with any entity
operating in the defense or intelligence sectors of the
Government of the Russian Federation;
(C) has knowingly delivered critical components to
or entered into any agreement relating to the sale or
delivery of critical components with any country or
entity with which the defense or intelligence sectors
of the Government of Russian Federation are cooperating
in support of Russia's war against Ukraine; or
(D) has knowingly delivered critical components to
or entered into any agreement relating to the sale or
delivery of critical components with a foreign person
that knowingly and directly provides these components
to the defense or intelligence sectors of the
Government of the Russian Federation.
(2) The extent to which--
(A) any foreign person that is a citizen of the
People's Republic of China or an entity organized under
the laws of the People's Republic of China has
knowingly engaged, on or after the date of the
enactment of this Act, in transactions with a person
that is part of, or operates on behalf of, the defense
or intelligence sectors of the Government of the
Russian Federation;
(B) any foreign person identified pursuant to
subparagraph (A) has engaged in transactions which
would constitute a significant transaction with persons
that have been sanctioned for being part of, or
operating on behalf of, the defense or intelligence
sectors of the Government of the Russian Federation; or
(C) any foreign person identified pursuant to
subparagraph (A) has been subjected to sanctions
imposed pursuant to sections 231 and 235 of the
Countering America's Adversaries Through Sanctions Act
(22 U.S.C. 9525 and 9529).
(b) Form and Availability.--
(1) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
(2) Availability.--The unclassified portion of the report
required by subsection (a) may also be made available to the
public.
SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC OR INDUSTRIAL
ESPIONAGE BY FOREIGN ADVERSARY ENTITIES.
(a) In General.--On and after the date that is 30 days after the
date of the enactment of this Act, the President (a) may impose the
sanctions described in subsection (c) against any of the foreign
persons described in subsection (b).
(b) Foreign Persons Described.--A foreign person is described in
this subsection if the President determines on or after the date of the
enactment of this Act that the person is a foreign adversary entity
that knowingly engages in--
(1) economic or industrial espionage with respect to trade
secrets or proprietary information owned by United States
persons;
(2) the provision of material support or services to a
foreign adversaries' military, intelligence, or other national
security entities; or
(3) the violation of United States export control laws.
(c) Sanctions Described.--The sanctions that may be imposed with
respect to a foreign person under subsection (b) are the following:
(1) Property blocking.--The exercise of all powers granted
to the President by the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) to the extent necessary to block
and prohibit all transactions in property and interests in
property of the foreign person if such property and interests
in property are in the United States, come within the United
States, or are or come within the possession or control of a
United States person.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--An alien
described in subsection (b) is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted
or paroled into the United States or to receive
any other benefit under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--An alien described in
subsection (b) is subject to revocation of any
visa or other entry documentation regardless of
when the visa or other entry documentation is
or was issued.
(ii) Immediate effect.--A revocation under
clause (i) shall take effect immediately and
automatically cancel any other valid visa or
entry documentation that is in the alien's
possession.
(d) Exceptions.--
(1) Exception for intelligence activities.--Sanctions under
this section shall not apply to any activity subject to the
reporting requirements under title V of the National Security
Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized
intelligence activities of the United States.
(2) Exception to comply with international obligations.--
Sanctions under subsection (c)(2) shall not apply with respect
to the admission of an alien if admitting or paroling the alien
into the United States is necessary to permit the United States
to comply with--
(A) the Agreement regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947,
and entered into force November 21, 1947, between the
United Nations and the United States; or
(B) other applicable international obligations.
(3) Exception to carry out or assist law enforcement
activities.--Sanctions under subsection (c)(2) shall not apply
with respect to an alien if admitting or paroling the alien
into the United States is necessary to carry out or assist law
enforcement activity in the United States.
(e) Waiver.--The President may waive the application of sanctions
under this section with respect to a foreign person for renewable
periods of not more than 180 days each if the President determines and
submits to the appropriate congressional committees a report that
contains a determination of the President that such a waiver is in the
national security interests of the United States.
(f) Implementation; Penalties.--
(1) Implementation.--The President may exercise the
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to the extent necessary to carry out this
section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of
subsection (a) or any regulation, license, or order issued to
carry out that subsection shall be subject to the penalties set
forth in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705) to
the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
(3) Procedures and guidelines for sanctions.--The President
shall establish procedures and guidelines for the
implementation and enforcement of sanctions imposed under this
section.
(4) Annual report.--
(A) Unless the exception in subparagraph (B)
applies, not later than one year after the date of the
enactment of this Act, and for each of the 5 years
thereafter, the President shall submit to the
appropriate congressional committees a report on any
notable developments regarding economic or industrial
espionage activities by foreign persons.
(B) The President shall not be required to submit
the annual report described by subparagraph (A) if the
President has imposed sanctions as authorized under
this section within the previous calendar year.
(g) Rule of Construction.--For purposes of this section, a
transaction shall not be construed to include participation in an
international standards-setting body or the activities of such a body.
SEC. 5. IMPORTATION OF GOODS EXCEPTION.
(a) In General.--The authorities and requirements to impose
sanctions under this Act shall not include the authority or a
requirement to impose sanctions on the importation of goods.
(b) Good Defined.--In this section, the term ``good'' means any
article, natural or manmade substance, material, supply, or
manufactured product, including inspection and test equipment, and
excluding technical data.
SEC. 6. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs of the House
of Representatives; and
(B) the Committee on Foreign Relations of the
Senate.
(2) Economic or industrial espionage.--The term ``economic
or industrial espionage'' has the meaning given that term in
section 1637(d) of the Carl Levin and Howard P. ``Buck'' McKeon
National Defense Authorization Act for Fiscal Year 2015.
(3) Foreign person.--The term ``foreign person'' means any
person that is not a United States person.
(4) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(5) Own, proprietary information, and trade secret.--The
terms ``own'', ``proprietary information'', and ``trade
secret'' have the meanings given those terms in section 1637(d)
of the Carl Levin and Howard P. ``Buck'' McKeon National
Defense Authorization Act for Fiscal Year 2015 (50 U.S.C.
1708(d)).
(6) Person.--The term ``person'' means an individual or
entity.
(7) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity.
(8) Foreign adversary.--The term ``foreign adversary''
means the countries listed in section 7.4 of title 15, Code of
Federal Regulations.
Passed the House of Representatives May 5, 2025.
Attest:
Clerk.
119th CONGRESS
1st Session
H. R. 1486
_______________________________________________________________________
AN ACT
To impose sanctions with respect to economic or industrial espionage by
foreign adversarial companies, and for other purposes.