Economic Espionage Prevention Act
The Economic Espionage Prevention Act would give the President new authority to sanction foreign adversary entities that knowingly engage in economic or industrial espionage against U.S. persons, provide material support to foreign militaries or intelligence services, or violate U.S. export controls. Sanctions could include blocking the foreign person’s property in the United States and prohibiting U.S. persons from engaging in transactions with them, as well as visa and immigration consequences for individuals involved. The act also requires a State Department-led report (within 90 days of enactment) analyzing links between Chinese entities and Russia’s defense sector, and it requires ongoing annual reporting on notable developments in economic/industrial espionage unless sanctions have already been imposed in the prior year. Importantly, the act explicitly does not authorize sanctions on the importation of goods. Definitions are provided for key terms such as “foreign adversary,” “knowingly,” and “economic or industrial espionage,” tying them to existing statutory language. In short, the bill aims to deter and punish overseas actors—especially those tied to China and other listed adversaries—who steal or improperly transfer U.S. trade secrets or otherwise assist foreign security services, by broadening the use of sanctions and creating formal reporting and implementation processes.
Key Points
- 1Establishes sanctions under the International Emergency Economic Powers Act (IEEPA) against foreign adversary entities that knowingly engage in economic or industrial espionage, provide support to foreign military/intelligence entities, or violate U.S. export controls.
- 2Sanctions tools include property blocking and visa/admission restrictions for individuals and entities, with potential visa revocation and entry bans for designated persons.
- 3A 30-day countdown after enactment for implementing sanctions, plus a waiver authority (renewable up to 180 days) if the President determines the waiver serves U.S. national security interests.
- 4Requires a State Department-led report to Congress within 90 days (unclassified, with possible classified annex) assessing whether PRC-connected individuals or entities supply critical components to Russia’s defense-industrial base, and related sanctionFootnote transactions; includes ongoing annual reporting on notable espionage developments for five years unless sanctions were already imposed in the prior year.
- 5Importation of goods is expressly not subject to sanctions; the act focuses sanctions on persons and transactions, not on goods themselves.
- 6Uses the CFR “foreign adversary” list (section 7.4 of title 15) to define who qualifies for sanctions; adopts definitions of “economic/industrial espionage,” “trade secrets,” and related terms from prior NDAA authorities.