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S 672119th CongressIn Committee

Protect America’s Innovation and Economic Security from CCP Act of 2025

Introduced: Feb 20, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Protect America’s Innovation and Economic Security from CCP Act of 2025 would create a new program, the CCP Initiative, within the Department of Justice’s National Security Division. The Initiative is designed to counter Chinese state-related threats by focusing on intellectual property and academic espionage, and by developing enforcement strategies against nontraditional tech transfers (e.g., researchers in labs, universities, and the defense industrial base). It would also incorporate modernization efforts to Foreign Investment in the United States (CFIUS) authorities as updated by the Foreign Investment Risk Review Modernization Act of 2018, in coordination with the Treasury, and would identify and pursue cases under the Foreign Corrupt Practices Act involving Chinese companies. The bill prioritizes trade secret theft, hacking, economic espionage, protection of critical infrastructure from foreign investment and supply chain threats, and scrutiny of Chinese investments tied to the Entity List or identified as Chinese military companies. It requires annual reporting on progress, resources, interagency coordination, and economic impact, and it includes a sunset after six years and a severability clause.

Key Points

  • 1Establishment and purpose of the CCP Initiative: A DOJ National Security Division program dedicated to countering nation-state threats from the Chinese Communist Party, curb espionage and IP theft, and address nontraditional collectors and transfers of technology.
  • 2Regulatory and enforcement scope: Implement and coordinate with the Treasury on amended CFIUS authorities (as updated by FIRREA 2018) to monitor and regulate foreign investments, with a focus on national security in technology and critical sectors.
  • 3FCPA and corporate scrutiny: Identify and pursue Chinese companies that may violate the Foreign Corrupt Practices Act, particularly in areas that compete with U.S. businesses.
  • 4Priorities and investigative focus: Emphasize prosecuting trade secret theft, hacking, economic espionage; protect critical U.S. infrastructure from external threats via foreign investment and supply chains; identify IP theft affecting small businesses.
  • 5Reporting, independence, and sunset: Requires annual reporting on progress, resources, interagency coordination, and economic impact; the Initiative must remain separate from other DOJ counter-nation-state efforts; the Act sunsets six years after enactment, with a severability clause to keep the rest valid if any provision is struck down.

Impact Areas

Primary group/area affected: U.S. Department of Justice (especially the National Security Division and the FBI in coordination), U.S. government agencies involved in national security and foreign investment (e.g., Treasury, Commerce, Defense), and the private sector (universities, laboratories, defense contractors, and small businesses engaged in technology and research).Secondary group/area affected: Foreign investors and Chinese-listed or affiliated companies, particularly those on the Entity List or identified as Chinese military companies; U.S. academic and research institutions that may face increased scrutiny over collaborations and technology transfer.Additional impacts: Potential increase in regulatory and enforcement activity related to foreign investments, trade secrets, and cyber espionage; possible changes in how universities and industry partner with foreign entities; enhanced coordination between DOJ, FBI, and other federal agencies; a defined review timeline and annual accountability reporting to Congress.
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