119-hr1486

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1486 Referred in Senate

    (RFS) ]

<DOC>
119th CONGRESS
 1st Session
 H. R. 1486

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 6, 2025

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

 AN ACT

To impose sanctions with respect to economic or industrial espionage by 
 foreign adversarial companies, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Economic Espionage Prevention Act''.

SEC. 2. FINDINGS.

 Congress finds the following:

    (1) On March 14, 2024, the Department of State notified 
 Congress of the following:
        (A) People's Republic of China exports of 
 semiconductors to Russia have increased substantially 
 since Russia's full-scale invasion of Ukraine.
        (B) In the second half of 2023, China exported 
 between $25,000,000 and $50,000,000 in additional 
 semiconductors to Russia every month relative to pre-
 invasion levels.
            (C) During the same period, China also exported 
 between $50,000,000 and $100,000,000 in additional 
 exports to Russia every month to known transshipment 
 hubs.
            (D) These exports include both Chinese and United 
 States-branded semiconductors (integrated circuits), 
 according to analysis of commercially available trade 
 data by the Bureau of Industry and Security of the 
 Department of Commerce, and are almost certainly 
 supporting Russia's military capabilities based on 
 Ukrainian analysis of recovered Russian weapons.
        (E) Because of the prevalence of United States 
 manufacturing equipment in global semiconductor supply 
 chains, nearly all chips produced worldwide, including 
 in the People's Republic of China, are subject to 
 United States export controls if destined for Russia or 
 Belarus.
        (F) All advanced semiconductors described on the 
 Commerce Control List have been subject to a license 
 requirement if destined to an entity in Russia since 
 its further invasion of Ukraine.

    (2) On April 3, 2024, Deputy Secretary of State, Kurt 
 Campbell, said ``I think we have assessed, over the course of 
 the last couple of months that Russia has almost completely 
 reconstituted militarily. And after the initial setbacks on the 
 battlefield delivered to them by a brave and hearty group in 
 Ukraine, with the support of China in particular, dual use 
 capabilities and a variety of other efforts, industrial and 
 commercial, Russia has retooled and now poses a threat to 
 Ukraine . . . But not just to Ukraine, its new found 
 capabilities pose a longer term challenge to stability in 
 Europe and threatens NATO allies.''.

SEC. 3. REPORT.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State, in coordination with the 
heads of relevant Federal departments and agencies, as appropriate, 
shall submit to the appropriate congressional committees, a written 
report that contains the following:

    (1) An analysis and description of the extent to which any 
 foreign person who is a citizen of the People's Republic of 
 China or an entity organized under the laws of the People's 
 Republic of China, or any foreign person or entity controlled 
 by or operating at the direction of the Government of the 
 People's Republic of China--
        (A) is knowingly a material source of critical 
 components necessary for the manufacture of weapons, 
 vehicles, and other military equipment by the defense 
 industrial base of the Russian Federation;
        (B) has knowingly delivered critical components to 
 or entered into any agreement relating to the sale or 
 delivery of critical components with any entity 
 operating in the defense or intelligence sectors of the 
 Government of the Russian Federation;
            (C) has knowingly delivered critical components to 
 or entered into any agreement relating to the sale or 
 delivery of critical components with any country or 
 entity with which the defense or intelligence sectors 
 of the Government of Russian Federation are cooperating 
 in support of Russia's war against Ukraine; or
            (D) has knowingly delivered critical components to 
 or entered into any agreement relating to the sale or 
 delivery of critical components with a foreign person 
 that knowingly and directly provides these components 
 to the defense or intelligence sectors of the 
 Government of the Russian Federation.

    (2) The extent to which--
        (A) any foreign person that is a citizen of the 
 People's Republic of China or an entity organized under 
 the laws of the People's Republic of China has 
 knowingly engaged, on or after the date of the 
 enactment of this Act, in transactions with a person 
 that is part of, or operates on behalf of, the defense 
 or intelligence sectors of the Government of the 
 Russian Federation;
        (B) any foreign person identified pursuant to 
 subparagraph
        (A) has engaged in transactions which 
 would constitute a significant transaction with persons 
 that have been sanctioned for being part of, or 
 operating on behalf of, the defense or intelligence 
 sectors of the Government of the Russian Federation; or
            (C) any foreign person identified pursuant to 
 subparagraph
        (A) has been subjected to sanctions 
 imposed pursuant to sections 231 and 235 of the 
 Countering America's Adversaries Through Sanctions Act 
 (22 U.S.C. 9525 and 9529).

    (b) Form and Availability.--

    (1) Form.--The report required by subsection

    (a) shall be 
 submitted in unclassified form, but may include a classified 
 annex.

    (2) Availability.--The unclassified portion of the report 
 required by subsection

    (a) may also be made available to the 
 public.

SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC OR INDUSTRIAL 
 ESPIONAGE BY FOREIGN ADVERSARY ENTITIES.

    (a) In General.--On and after the date that is 30 days after the 
date of the enactment of this Act, the President

    (a) may impose the 
sanctions described in subsection
            (c) against any of the foreign 
persons described in subsection

    (b) .

    (b) Foreign Persons Described.--A foreign person is described in 
this subsection if the President determines on or after the date of the 
enactment of this Act that the person is a foreign adversary entity 
that knowingly engages in--

    (1) economic or industrial espionage with respect to trade 
 secrets or proprietary information owned by United States 
 persons;

    (2) the provision of material support or services to a 
 foreign adversaries' military, intelligence, or other national 
 security entities; or

    (3) the violation of United States export control laws.
            (c) Sanctions Described.--The sanctions that may be imposed with 
respect to a foreign person under subsection

    (b) are the following:

    (1) Property blocking.--The exercise of all powers granted 
 to the President by the International Emergency Economic Powers 
 Act (50 U.S.C. 1701 et seq.) to the extent necessary to block 
 and prohibit all transactions in property and interests in 
 property of the foreign person if such property and interests 
 in property are in the United States, come within the United 
 States, or are or come within the possession or control of a 
 United States person.

    (2) Ineligibility for visas, admission, or parole.--
        (A) Visas, admission, or parole.--An alien 
 described in subsection

    (b) is--
            (i) inadmissible to the United States;
            (ii) ineligible to receive a visa or other 
 documentation to enter the United States; and
            (iii) otherwise ineligible to be admitted 
 or paroled into the United States or to receive 
 any other benefit under the Immigration and 
 Nationality Act (8 U.S.C. 1101 et seq.).
        (B) Current visas revoked.--
            (i) In general.--An alien described in 
 subsection

    (b) is subject to revocation of any 
 visa or other entry documentation regardless of 
 when the visa or other entry documentation is 
 or was issued.
            (ii) Immediate effect.--A revocation under 
 clause
            (i) shall take effect immediately and 
 automatically cancel any other valid visa or 
 entry documentation that is in the alien's 
 possession.
            (d) Exceptions.--

    (1) Exception for intelligence activities.--Sanctions under 
 this section shall not apply to any activity subject to the 
 reporting requirements under title V of the National Security 
 Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
 intelligence activities of the United States.

    (2) Exception to comply with international obligations.--
 Sanctions under subsection
            (c) (2) shall not apply with respect 
 to the admission of an alien if admitting or paroling the alien 
 into the United States is necessary to permit the United States 
 to comply with--
        (A) the Agreement regarding the Headquarters of the 
 United Nations, signed at Lake Success June 26, 1947, 
 and entered into force November 21, 1947, between the 
 United Nations and the United States; or
        (B) other applicable international obligations.

    (3) Exception to carry out or assist law enforcement 
 activities.--Sanctions under subsection
            (c) (2) shall not apply 
 with respect to an alien if admitting or paroling the alien 
 into the United States is necessary to carry out or assist law 
 enforcement activity in the United States.

    (e) Waiver.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 180 days each if the President determines and 
submits to the appropriate congressional committees a report that 
contains a determination of the President that such a waiver is in the 
national security interests of the United States.

    (f) Implementation; Penalties.--

    (1) Implementation.--The President may exercise the 
 authorities provided to the President under sections 203 and 
 205 of the International Emergency Economic Powers Act (50 
 U.S.C. 1702 and 1704) to the extent necessary to carry out this 
 section.

    (2) Penalties.--A person that violates, attempts to 
 violate, conspires to violate, or causes a violation of 
 subsection

    (a) or any regulation, license, or order issued to 
 carry out that subsection shall be subject to the penalties set 
 forth in subsections

    (b) and
            (c) of 

section 206 of the 
 International Emergency Economic Powers Act (50 U.S.C. 1705) to 
 the same extent as a person that commits an unlawful act 
 described in subsection

    (a) of that section.

    (3) Procedures and guidelines for sanctions.--The President 
 shall establish procedures and guidelines for the 
 implementation and enforcement of sanctions imposed under this 
 section.

    (4) Annual report.--
        (A) Unless the exception in subparagraph
        (B) applies, not later than one year after the date of the 
 enactment of this Act, and for each of the 5 years 
 thereafter, the President shall submit to the 
 appropriate congressional committees a report on any 
 notable developments regarding economic or industrial 
 espionage activities by foreign persons.
        (B) The President shall not be required to submit 
 the annual report described by subparagraph
        (A) if the 
 President has imposed sanctions as authorized under 
 this section within the previous calendar year.

    (g) Rule of Construction.--For purposes of this section, a 
transaction shall not be construed to include participation in an 
international standards-setting body or the activities of such a body.

SEC. 5. IMPORTATION OF GOODS EXCEPTION.

    (a) In General.--The authorities and requirements to impose 
sanctions under this Act shall not include the authority or a 
requirement to impose sanctions on the importation of goods.

    (b) Good Defined.--In this section, the term ``good'' means any 
article, natural or manmade substance, material, supply, or 
manufactured product, including inspection and test equipment, and 
excluding technical data.

SEC. 6. DEFINITIONS.

 In this Act:

    (1) Appropriate congressional committees.--The term 
 ``appropriate congressional committees'' means--
        (A) the Committee on Foreign Affairs of the House 
 of Representatives; and
        (B) the Committee on Foreign Relations of the 
 Senate.

    (2) Economic or industrial espionage.--The term ``economic 
 or industrial espionage'' has the meaning given that term in 
 

section 1637
            (d) of the Carl Levin and Howard P. ``Buck'' McKeon 
 National Defense Authorization Act for Fiscal Year 2015.

    (3) Foreign person.--The term ``foreign person'' means any 
 person that is not a United States person.

    (4) Knowingly.--The term ``knowingly'', with respect to 
 conduct, a circumstance, or a result, means that a person has 
 actual knowledge, or should have known, of the conduct, the 
 circumstance, or the result.

    (5) Own, proprietary information, and trade secret.--The 
 terms ``own'', ``proprietary information'', and ``trade 
 secret'' have the meanings given those terms in 

section 1637
            (d) of the Carl Levin and Howard P. ``Buck'' McKeon National 
 Defense Authorization Act for Fiscal Year 2015 (50 U.S.C. 
 1708
            (d) ).

    (6) Person.--The term ``person'' means an individual or 
 entity.

    (7) United states person.--The term ``United States 
 person'' means--
        (A) a United States citizen or an alien lawfully 
 admitted for permanent residence to the United States; 
 or
        (B) an entity organized under the laws of the 
 United States or any jurisdiction within the United 
 States, including a foreign branch of such an entity.

    (8) Foreign adversary.--The term ``foreign adversary'' 
 means the countries listed in 

section 7.4 of title 15, Code of 
 Federal Regulations.

 Passed the House of Representatives May 5, 2025.

 Attest:

 KEVIN F. MCCUMBER,

 Clerk.