Economic Espionage Prevention Act

Key Points

• The bill gives the president power to sanction foreign companies and individuals who steal American trade secrets, support foreign militaries, or violate U.S. export controls. Sanctions include freezing property and blocking financial transactions in the United States.
• Congress highlights that Chinese companies have been shipping billions of dollars worth of semiconductors to Russia since its invasion of Ukraine, including U.S.-branded chips that are likely ending up in Russian weapons.
• Anyone targeted by these sanctions would be banned from entering the United States, and any existing visas would be immediately revoked.
• Within 90 days of enactment, the Secretary of State must deliver a report to Congress identifying Chinese persons and entities that are materially helping Russia's defense and intelligence sectors.
• The bill does not allow sanctions on the importation of goods themselves, meaning it targets financial assets and people rather than blocking physical trade at the border.
• The president must submit annual reports to Congress on economic espionage activities for six years, unless sanctions were already imposed in the prior year.