Economic Espionage Prevention Act
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Would authorize the President to impose visa restrictions and property-blocking sanctions on foreign adversary entities — from countries including China, Russia, Iran, and North Korea — that knowingly engage in economic espionage, steal U.S. trade secrets, or violate export control laws.
It would also require the Secretary of State to report within 90 days on whether Chinese entities are supplying critical military components to Russia, directly linking economic espionage concerns to Russia's war in Ukraine.
What this bill would do
What it would do
The bill would authorize the President, beginning 30 days after enactment, to impose two categories of sanctions on qualifying foreign adversary entities: property-blocking sanctions that freeze assets in or entering the United States, and visa-related measures rendering foreign nationals inadmissible, ineligible for visas, and subject to immediate revocation of existing entry documentation. These sanctions could target entities from designated foreign adversary countries — defined by existing regulations to include China, Russia, Iran, North Korea, Cuba, and the Maduro regime of Venezuela — that knowingly engage in economic or industrial espionage against U.S. trade secrets, provide material support to adversary military or intelligence entities, or violate U.S. export control laws. Penalties for violating imposed sanctions would follow the enforcement framework of the International Emergency Economic Powers Act.
The bill would separately require the Secretary of State to submit a written report to Congress within 90 days analyzing the extent to which Chinese entities are knowingly supplying critical components to Russia's defense and intelligence sectors. The bill explicitly excludes sanctions on the importation of goods. The President may waive sanctions for renewable 180-day periods on national security grounds, and must report annually on economic espionage developments unless sanctions have already been imposed in the prior year.
Key provisions
- 1Would require the Secretary of State to submit a report within 90 days on the extent to which Chinese entities are supplying critical components to Russia's defense and intelligence sectors.
- 2Would authorize the President to impose property-blocking sanctions on foreign adversary entities that knowingly engage in economic espionage, support adversary national security entities, or violate U.S. export control laws.
- 3Would render sanctioned foreign nationals inadmissible to the United States and subject to immediate revocation of any existing visas or entry documentation.
- 4Would allow the President to waive sanctions for renewable periods of up to 180 days each upon a national security determination reported to Congress.
- 5Would require the President to submit annual reports on notable economic espionage developments, unless sanctions under the Act have been imposed in the prior year.
- 6Would explicitly exclude authority to impose sanctions on the importation of goods, defined to include materials and manufactured products but not technical data.
Who would be affected
Foreign companies and individuals from designated adversary nations — China, Russia, Iran, North Korea, Cuba, and Venezuela's Maduro regime — that engage in economic espionage, export control violations, or material support of adversary national security entities. U.S. companies and individuals whose trade secrets are targeted by foreign adversaries are the intended beneficiaries. The Secretary of State and relevant federal agencies would be directed to produce the mandated report on Chinese-Russian military supply chains.
Why it matters
U.S. businesses whose proprietary information or trade secrets are stolen by foreign adversary entities would gain a new federal sanctions tool aimed at deterrence. Foreign nationals and companies from adversary nations engaged in espionage or export control violations could face U.S. asset freezes and loss of visa eligibility. The separate China-Russia reporting requirement could expose specific firms aiding Russia's military, creating a predicate for further sanctions action.
What would change
Changes to existing law
Creates International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (Sec. 4)
Establishes a new sanctions authority using IEEPA's property-blocking and penalty framework against foreign adversary entities engaged in espionage or export control violations.
Creates Countering America's Adversaries Through Sanctions Act, 22 U.S.C. 9525 and 9529 (Sec. 3)
References CAATSA sections 231 and 235 as benchmarks for identifying foreign persons already sanctioned for operating in Russia's defense or intelligence sectors.
Creates Carl Levin and Howard P. 'Buck' McKeon National Defense Authorization Act for Fiscal Year 2015 (50 U.S.C. 1708(d)) (Sec. 6)
Incorporates that Act's definitions of 'economic or industrial espionage,' 'trade secret,' and 'proprietary information' for purposes of this new sanctions regime.
Agencies directed to act
Effective dates
- President's authority to impose sanctions becomes operative
- Secretary of State report on Chinese entities supplying Russia's military due
- First annual presidential report on economic espionage developments due
How implementation would work
The President would have discretionary authority to impose sanctions and must establish formal procedures and guidelines for doing so. Sanctions enforcement and penalties would operate through the existing International Emergency Economic Powers Act framework. The President may waive sanctions for renewable 180-day periods upon notifying the appropriate congressional committees of a national security justification. Annual reports on economic espionage activities are required unless sanctions have been imposed in the prior calendar year. Separately, the Secretary of State, coordinating with relevant agencies, must deliver the China-Russia supply chain report within 90 days; that report may include a classified annex.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
Official CRS summary
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This bill authorizes the President to impose visa- and property-blocking sanctions on foreign adversary entities that knowingly engage in (1) economic and industrial espionage with respect to trade secrets and proprietary information owned by U.S. persons, (2) the provision of material support or services to a foreign adversaries' national security entities, or (3) the violation of U.S. export control laws. The bill cites regulations that define China, Russia, Iran, North Korea, Cuba, and the Maduro regime of Venezuela as foreign adversaries.
The bill also limits certain exemptions from the President's authority under the International Emergency Economic Powers Act (IEEPA). IEEPA provides the President broad authority to regulate a variety of economic transactions following a declaration of national emergency, but exempts from this authority activities such as (1) the import or export of information or informational materials; (2) transactions ordinarily incident to international travel, such as the importation of personal baggage; and (3) personal communications, such as postal or telephonic communications, that do not transfer anything of value. Under the bill, the first two of these exemptions are not applicable if the President determines such imports and exports would seriously impair the ability to deal with a declared national emergency. Additionally, the bill specifies that the first and third exemptions listed above do not apply to bulk sensitive personal data or source code used in a connected software application.
Legislative subjects
Asia; China; Civil actions and liability; Europe; Immigration status and procedures; Intelligence activities, surveillance, classified information; International Affairs; Presidents and presidential powers, Vice Presidents; Russia; Sanctions; Trade restrictions; Trade secrets and economic espionage; Visas and passports