Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1486 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 I
22 119THCONGRESS
33 1
44 STSESSION H. R. 1486
55 To impose sanctions with respect to economic or industrial espionage by
66 foreign adversarial companies, and for other purposes.
77 IN THE HOUSE OF REPRESENTATIVES
88 FEBRUARY21, 2025
99 Mr. M
1010 CCORMICK(for himself and Mr. MOOLENAAR) introduced the following
1111 bill; which was referred to the Committee on Foreign Affairs, and in ad-
1212 dition to the Committee on the Judiciary, for a period to be subsequently
1313 determined by the Speaker, in each case for consideration of such provi-
1414 sions as fall within the jurisdiction of the committee concerned
1515 A BILL
1616 To impose sanctions with respect to economic or industrial
1717 espionage by foreign adversarial companies, and for other
1818 purposes.
1919 Be it enacted by the Senate and House of Representa-1
2020 tives of the United States of America in Congress assembled, 2
2121 SECTION 1. SHORT TITLE. 3
2222 This Act may be cited as the ‘‘Economic Espionage 4
2323 Prevention Act’’. 5
2424 SEC. 2. FINDINGS. 6
2525 Congress finds the following: 7
2626 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
2727 ssavage on LAPJG3WLY3PROD with BILLS 2
2828 •HR 1486 IH
2929 (1) On March 14, 2024, the Department of 1
3030 State notified Congress of the following: 2
3131 (A) People’s Republic of China exports of 3
3232 semiconductors to Russia have increased sub-4
3333 stantially since Russia’s full-scale invasion of 5
3434 Ukraine. 6
3535 (B) In the second half of 2023, China ex-7
3636 ported between $25,000,000 and $50,000,000 8
3737 in additional semiconductors to Russia every 9
3838 month relative to pre-invasion levels. 10
3939 (C) During the same period, China also ex-11
4040 ported between $50,000,000 and $100,000,000 12
4141 in additional exports to Russia every month to 13
4242 known transshipment hubs. 14
4343 (D) These exports include both Chinese 15
4444 and United States-branded semiconductors (in-16
4545 tegrated circuits), according to analysis of com-17
4646 mercially available trade data by the Bureau of 18
4747 Industry and Security of the Department of 19
4848 Commerce, and are almost certainly supporting 20
4949 Russia’s military capabilities based on Ukrain-21
5050 ian analysis of recovered Russian weapons. 22
5151 (E) Because of the prevalence of United 23
5252 States manufacturing equipment in global semi-24
5353 conductor supply chains, nearly all chips pro-25
5454 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
5555 ssavage on LAPJG3WLY3PROD with BILLS 3
5656 •HR 1486 IH
5757 duced worldwide, including in the People’s Re-1
5858 public of China, are subject to United States 2
5959 export controls if destined for Russia or 3
6060 Belarus. 4
6161 (F) All advanced semiconductors described 5
6262 on the Commerce Control List have been sub-6
6363 ject to a license requirement if destined to an 7
6464 entity in Russia since its further invasion of 8
6565 Ukraine. 9
6666 (2) On April 3, 2024, Deputy Secretary of 10
6767 State, Kurt Campbell, said ‘‘I think we have as-11
6868 sessed, over the course of the last couple of months 12
6969 that Russia has almost completely reconstituted 13
7070 militarily. And after the initial setbacks on the bat-14
7171 tlefield delivered to them by a brave and hearty 15
7272 group in Ukraine, with the support of China in par-16
7373 ticular, dual use capabilities and a variety of other 17
7474 efforts, industrial and commercial, Russia has re-18
7575 tooled and now poses a threat to Ukraine . . . But 19
7676 not just to Ukraine, its new found capabilities pose 20
7777 a longer term challenge to stability in Europe and 21
7878 threatens NATO allies.’’. 22
7979 SEC. 3. REPORT. 23
8080 (a) I
8181 NGENERAL.—Not later than 90 days after the 24
8282 date of the enactment of this Act, the Secretary of State, 25
8383 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
8484 ssavage on LAPJG3WLY3PROD with BILLS 4
8585 •HR 1486 IH
8686 in coordination with the heads of relevant Federal depart-1
8787 ments and agencies, as appropriate, shall submit to the 2
8888 appropriate congressional committees, a written report 3
8989 that contains the following: 4
9090 (1) An analysis and description of the extent to 5
9191 which any foreign person who is a citizen of the Peo-6
9292 ple’s Republic of China or an entity organized under 7
9393 the laws of the People’s Republic of China, or any 8
9494 foreign person or entity controlled by or operating at 9
9595 the direction of the Government of the People’s Re-10
9696 public of China— 11
9797 (A) is knowingly a material source of crit-12
9898 ical components necessary for the manufacture 13
9999 of weapons, vehicles, and other military equip-14
100100 ment by the defense industrial base of the Rus-15
101101 sian Federation; 16
102102 (B) has knowingly delivered critical compo-17
103103 nents to or entered into any agreement relating 18
104104 to the sale or delivery of critical components 19
105105 with any entity operating in the defense or in-20
106106 telligence sectors of the Government of the Rus-21
107107 sian Federation; 22
108108 (C) has knowingly delivered critical compo-23
109109 nents to or entered into any agreement relating 24
110110 to the sale or delivery of critical components 25
111111 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
112112 ssavage on LAPJG3WLY3PROD with BILLS 5
113113 •HR 1486 IH
114114 with any country or entity with which the de-1
115115 fense or intelligence sectors of the Government 2
116116 of Russian Federation are cooperating in sup-3
117117 port of Russia’s war against Ukraine; or 4
118118 (D) has knowingly delivered critical compo-5
119119 nents to or entered into any agreement relating 6
120120 to the sale or delivery of critical components 7
121121 with a foreign person that knowingly and di-8
122122 rectly provides these components to the defense 9
123123 or intelligence sectors of the Government of the 10
124124 Russian Federation. 11
125125 (2) The extent to which— 12
126126 (A) any foreign person that is a citizen of 13
127127 the People’s Republic of China or an entity or-14
128128 ganized under the laws of the People’s Republic 15
129129 of China has knowingly engaged, on or after the 16
130130 date of the enactment of this Act, in trans-17
131131 actions with a person that is part of, or oper-18
132132 ates on behalf of, the defense or intelligence 19
133133 sectors of the Government of the Russian Fed-20
134134 eration; 21
135135 (B) any foreign person identified pursuant 22
136136 to subparagraph (A) has engaged in trans-23
137137 actions which would constitute a significant 24
138138 transaction with persons that have been sanc-25
139139 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
140140 ssavage on LAPJG3WLY3PROD with BILLS 6
141141 •HR 1486 IH
142142 tioned for being part of, or operating on behalf 1
143143 of, the defense or intelligence sectors of the 2
144144 Government of the Russian Federation; or 3
145145 (C) any foreign person identified pursuant 4
146146 to subparagraph (A) has been subjected to 5
147147 sanctions imposed pursuant to sections 231 and 6
148148 235 of the Countering America’s Adversaries 7
149149 Through Sanctions Act (22 U.S.C. 9525 and 8
150150 9529). 9
151151 (b) F
152152 ORM ANDAVAILABILITY.— 10
153153 (1) F
154154 ORM.—The report required by subsection 11
155155 (a) shall be submitted in unclassified form, but may 12
156156 include a classified annex. 13
157157 (2) A
158158 VAILABILITY.—The unclassified portion of 14
159159 the report required by subsection (a) may also be 15
160160 made available to the public. 16
161161 SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO ECO-17
162162 NOMIC OR INDUSTRIAL ESPIONAGE BY FOR-18
163163 EIGN ADVERSARY ENTITIES. 19
164164 (a) I
165165 NGENERAL.—On and after the date that is 30 20
166166 days after the date of the enactment of this Act, the Presi-21
167167 dent (a) may impose the sanctions described in subsection 22
168168 (c) against any of the foreign persons described in sub-23
169169 section (b). 24
170170 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
171171 ssavage on LAPJG3WLY3PROD with BILLS 7
172172 •HR 1486 IH
173173 (b) FOREIGNPERSONSDESCRIBED.—A foreign per-1
174174 son is described in this subsection if the President deter-2
175175 mines on or after the date of the enactment of this Act 3
176176 that the person is a foreign adversary entity that know-4
177177 ingly engages in— 5
178178 (1) economic or industrial espionage with re-6
179179 spect to trade secrets or proprietary information 7
180180 owned by United States persons; 8
181181 (2) the provision of material support or services 9
182182 to a foreign adversaries’ military, intelligence, or 10
183183 other national security entities; or 11
184184 (3) the violation of United States export control 12
185185 laws. 13
186186 (c) S
187187 ANCTIONSDESCRIBED.—The sanctions that 14
188188 may be imposed with respect to a foreign person under 15
189189 subsection (b) are the following: 16
190190 (1) P
191191 ROPERTY BLOCKING .—The exercise of all 17
192192 powers granted to the President by the International 18
193193 Emergency Economic Powers Act (50 U.S.C. 1701 19
194194 et seq.) to the extent necessary to block and prohibit 20
195195 all transactions in property and interests in property 21
196196 of the foreign person if such property and interests 22
197197 in property are in the United States, come within 23
198198 the United States, or are or come within the posses-24
199199 sion or control of a United States person. 25
200200 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
201201 ssavage on LAPJG3WLY3PROD with BILLS 8
202202 •HR 1486 IH
203203 (2) INELIGIBILITY FOR VISAS, ADMISSION, OR 1
204204 PAROLE.— 2
205205 (A) V
206206 ISAS, ADMISSION, OR PAROLE.—An 3
207207 alien described in subsection (b) is— 4
208208 (i) inadmissible to the United States; 5
209209 (ii) ineligible to receive a visa or other 6
210210 documentation to enter the United States; 7
211211 and 8
212212 (iii) otherwise ineligible to be admitted 9
213213 or paroled into the United States or to re-10
214214 ceive any other benefit under the Immigra-11
215215 tion and Nationality Act (8 U.S.C. 1101 et 12
216216 seq.). 13
217217 (B) C
218218 URRENT VISAS REVOKED .— 14
219219 (i) I
220220 N GENERAL.—An alien described 15
221221 in subsection (b) is subject to revocation of 16
222222 any visa or other entry documentation re-17
223223 gardless of when the visa or other entry 18
224224 documentation is or was issued. 19
225225 (ii) I
226226 MMEDIATE EFFECT .—A revoca-20
227227 tion under clause (i) shall take effect im-21
228228 mediately and automatically cancel any 22
229229 other valid visa or entry documentation 23
230230 that is in the alien’s possession. 24
231231 (d) E
232232 XCEPTIONS.— 25
233233 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
234234 ssavage on LAPJG3WLY3PROD with BILLS 9
235235 •HR 1486 IH
236236 (1) EXCEPTION FOR INTELLIGENCE ACTIVI -1
237237 TIES.—Sanctions under this section shall not apply 2
238238 to any activity subject to the reporting requirements 3
239239 under title V of the National Security Act of 1947 4
240240 (50 U.S.C. 3091 et seq.) or any authorized intel-5
241241 ligence activities of the United States. 6
242242 (2) E
243243 XCEPTION TO COMPLY WITH INTER -7
244244 NATIONAL OBLIGATIONS .—Sanctions under sub-8
245245 section (c)(2) shall not apply with respect to the ad-9
246246 mission of an alien if admitting or paroling the alien 10
247247 into the United States is necessary to permit the 11
248248 United States to comply with— 12
249249 (A) the Agreement regarding the Head-13
250250 quarters of the United Nations, signed at Lake 14
251251 Success June 26, 1947, and entered into force 15
252252 November 21, 1947, between the United Na-16
253253 tions and the United States; or 17
254254 (B) other applicable international obliga-18
255255 tions. 19
256256 (3) E
257257 XCEPTION TO CARRY OUT OR ASSIST LAW 20
258258 ENFORCEMENT ACTIVITIES .—Sanctions under sub-21
259259 section (c)(2) shall not apply with respect to an alien 22
260260 if admitting or paroling the alien into the United 23
261261 States is necessary to carry out or assist law en-24
262262 forcement activity in the United States. 25
263263 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
264264 ssavage on LAPJG3WLY3PROD with BILLS 10
265265 •HR 1486 IH
266266 (e) WAIVER.—The President may waive the applica-1
267267 tion of sanctions under this section with respect to a for-2
268268 eign person for renewable periods of not more than 180 3
269269 days each if the President determines and submits to the 4
270270 appropriate congressional committees a report that con-5
271271 tains a determination of the President that such a waiver 6
272272 is in the national security interests of the United States. 7
273273 (f) I
274274 MPLEMENTATION; PENALTIES.— 8
275275 (1) I
276276 MPLEMENTATION.—The President may ex-9
277277 ercise the authorities provided to the President 10
278278 under sections 203 and 205 of the International 11
279279 Emergency Economic Powers Act (50 U.S.C. 1702 12
280280 and 1704) to the extent necessary to carry out this 13
281281 section. 14
282282 (2) P
283283 ENALTIES.—A person that violates, at-15
284284 tempts to violate, conspires to violate, or causes a 16
285285 violation of subsection (a) or any regulation, license, 17
286286 or order issued to carry out that subsection shall be 18
287287 subject to the penalties set forth in subsections (b) 19
288288 and (c) of section 206 of the International Emer-20
289289 gency Economic Powers Act (50 U.S.C. 1705) to the 21
290290 same extent as a person that commits an unlawful 22
291291 act described in subsection (a) of that section. 23
292292 (3) P
293293 ROCEDURES AND GUIDELINES FOR SANC -24
294294 TIONS.—The President shall establish procedures 25
295295 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
296296 ssavage on LAPJG3WLY3PROD with BILLS 11
297297 •HR 1486 IH
298298 and guidelines for the implementation and enforce-1
299299 ment of sanctions imposed under this section. 2
300300 (4) A
301301 NNUAL REPORT.— 3
302302 (A) Unless the exception in subparagraph 4
303303 (B) applies, not later than one year after the 5
304304 date of the enactment of this Act, and for each 6
305305 of the 5 years thereafter, the President shall 7
306306 submit to the appropriate congressional com-8
307307 mittees a report on any notable developments 9
308308 regarding economic or industrial espionage ac-10
309309 tivities by foreign persons. 11
310310 (B) The President shall not be required to 12
311311 submit the annual report described by subpara-13
312312 graph (A) if the President has imposed sanc-14
313313 tions as authorized under this section within 15
314314 the previous calendar year. 16
315315 (g) R
316316 ULE OFCONSTRUCTION.—For purposes of this 17
317317 section, a transaction shall not be construed to include 18
318318 participation in an international standards-setting body or 19
319319 the activities of such a body. 20
320320 SEC. 5. CLARIFYING AMENDMENTS. 21
321321 Section 203 of the International Emergency Eco-22
322322 nomic Powers Act (50 U.S.C. 1702) is amended— 23
323323 (1) in subsection (b)— 24
324324 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
325325 ssavage on LAPJG3WLY3PROD with BILLS 12
326326 •HR 1486 IH
327327 (A) in the matter preceding paragraph (1), 1
328328 by striking ‘‘, directly or indirectly’’; 2
329329 (B) in paragraph (3)— 3
330330 (i) by striking ‘‘including but not lim-4
331331 ited to’’ and all that follows through ‘‘news 5
332332 wire feeds.’’ and inserting ‘‘except to the 6
333333 extent that the President determines that 7
334334 such imports and exports would seriously 8
335335 impair his ability to deal with any national 9
336336 emergency declared under section 202.’’; 10
337337 and 11
338338 (ii) by striking ‘‘under section 5 of the 12
339339 Export Administration Act of 1979, or 13
340340 under section 6 of such Act’’ and inserting 14
341341 ‘‘under other statutory or regulatory ex-15
342342 port control authorities’’; and 16
343343 (C) in paragraph (4), by inserting ‘‘, ex-17
344344 cept to the extent that the President determines 18
345345 that such imports and exports would seriously 19
346346 impair the ability to deal with any national 20
347347 emergency declared under section 202’’ before 21
348348 the period at the end; and 22
349349 (2) by adding at the end the following: 23
350350 ‘‘(d) R
351351 ULES OFCONSTRUCTIONRELATING TOSEN-24
352352 SITIVE ANDPERSONALDATA.—The communication, the 25
353353 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
354354 ssavage on LAPJG3WLY3PROD with BILLS 13
355355 •HR 1486 IH
356356 importation to a country, or the exportation from a coun-1
357357 try, directly or indirectly, whether commercial or other-2
358358 wise, of bulk sensitive personal data or of source code used 3
359359 in a connected software application may not be construed 4
360360 to constitute— 5
361361 ‘‘(1) a ‘postal, telegraphic, telephonic, or other 6
362362 personal communication’, for purposes of subsection 7
363363 (b)(1); or 8
364364 ‘‘(2) an importation from a country, or an ex-9
365365 portation to a country, of ‘information or informa-10
366366 tional materials’, for purposes of subsection (b)(3).’’. 11
367367 SEC. 6. DEFINITIONS. 12
368368 In this Act: 13
369369 (1) A
370370 PPROPRIATE CONGRESSIONAL COMMIT -14
371371 TEES.—The term ‘‘appropriate congressional com-15
372372 mittees’’ means— 16
373373 (A) the Committee on Foreign Affairs of 17
374374 the House of Representatives; and 18
375375 (B) the Committee on Foreign Relations of 19
376376 the Senate. 20
377377 (2) E
378378 CONOMIC OR INDUSTRIAL ESPIONAGE .— 21
379379 The term ‘‘economic or industrial espionage’’ has 22
380380 the meaning given that term in section 1637(d) of 23
381381 the Carl Levin and Howard P. ‘‘Buck’’ McKeon Na-24
382382 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
383383 ssavage on LAPJG3WLY3PROD with BILLS 14
384384 •HR 1486 IH
385385 tional Defense Authorization Act for Fiscal Year 1
386386 2015. 2
387387 (3) F
388388 OREIGN PERSON.—The term ‘‘foreign per-3
389389 son’’ means any person that is not a United States 4
390390 person. 5
391391 (4) K
392392 NOWINGLY.—The term ‘‘knowingly’’, with 6
393393 respect to conduct, a circumstance, or a result, 7
394394 means that a person has actual knowledge, or should 8
395395 have known, of the conduct, the circumstance, or the 9
396396 result. 10
397397 (5) O
398398 WN, PROPRIETARY INFORMATION , AND 11
399399 TRADE SECRET.—The terms ‘‘own’’, ‘‘proprietary in-12
400400 formation’’, and ‘‘trade secret’’ have the meanings 13
401401 given those terms in section 1637(d) of the Carl 14
402402 Levin and Howard P. ‘‘Buck’’ McKeon National De-15
403403 fense Authorization Act for Fiscal Year 2015 (50 16
404404 U.S.C. 1708(d)). 17
405405 (6) P
406406 ERSON.—The term ‘‘person’’ means an in-18
407407 dividual or entity. 19
408408 (7) U
409409 NITED STATES PERSON .—The term 20
410410 ‘‘United States person’’ means— 21
411411 (A) a United States citizen or an alien law-22
412412 fully admitted for permanent residence to the 23
413413 United States; or 24
414414 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1486.IH H1486
415415 ssavage on LAPJG3WLY3PROD with BILLS 15
416416 •HR 1486 IH
417417 (B) an entity organized under the laws of 1
418418 the United States or any jurisdiction within the 2
419419 United States, including a foreign branch of 3
420420 such an entity. 4
421421 (8) F
422422 OREIGN ADVERSARY .—The term ‘‘foreign 5
423423 adversary’’ means the countries listed in section 7.4 6
424424 of title 15, Code of Federal Regulations. 7
425425 Æ
426426 VerDate Sep 11 2014 23:19 Mar 15, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6301 E:\BILLS\H1486.IH H1486
427427 ssavage on LAPJG3WLY3PROD with BILLS