118TH CONGRESS 

2D SESSION H. R. 8361 

AN ACT 

To impose sanctions with respect to economic or industrial 

espionage by foreign adversarial companies, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Economic Espionage 

3 Prevention Act’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds the following: 

6 (1) On March 14, 2024, the Department of 

7 State notified Congress of the following: 

8 (A) People’s Republic of China exports of 

9 semiconductors to Russia have increased sub10 stantially since Russia’s full-scale invasion of 

11 Ukraine. 

12 (B) In the second half of 2023, China ex13 ported between $25,000,000 and $50,000,000 

14 in additional semiconductors to Russia every 

15 month relative to pre-invasion levels. 

16 (C) During the same period, China also ex17 ported between $50,000,000 and $100,000,000 

18 in additional exports to Russia every month to 

19 known transshipment hubs. 

20 (D) These exports include both Chinese 

21 and United States-branded semiconductors (in22 tegrated circuits), according to analysis of com23 mercially available trade data by the Bureau of 

24 Industry and Security of the Department of 

25 Commerce, and are almost certainly supporting 
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1 Russia’s military capabilities based on Ukrain2 ian analysis of recovered Russian weapons. 

3 (E) Because of the prevalence of United 

4 States manufacturing equipment in global semi5 conductor supply chains, nearly all chips pro6 duced worldwide, including in the People’s Re7 public of China, are subject to United States 

8 export controls if destined for Russia or 

9 Belarus. 

10 (F) All advanced semiconductors described 

11 on the Commerce Control List have been sub12 ject to a license requirement if destined to an 

13 entity in Russia since its further invasion of 

14 Ukraine. 

15 (2) On April 3, 2024, Deputy Secretary of 

16 State, Kurt Campbell, said ‘‘I think we have as17 sessed, over the course of the last couple of months 

18 that Russia has almost completely reconstituted 

19 militarily. And after the initial setbacks on the bat20 tlefield delivered to them by a brave and hearty 

21 group in Ukraine, with the support of China in par22 ticular, dual use capabilities and a variety of other 

23 efforts, industrial and commercial, Russia has re24 tooled and now poses a threat to Ukraine. . .But not 

25 just to Ukraine, its new found capabilities pose a 
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1 longer term challenge to stability in Europe and 

2 threatens NATO allies.’’. 

3 SEC. 3. REPORT. 

4 (a) IN GENERAL.—Not later than 90 days after the 

5 date of the enactment of this Act, the Secretary of State, 

6 in coordination with the heads of relevant Federal depart7 ments and agencies, as appropriate, shall submit to the 

8 appropriate congressional committees, a written report 

9 that contains the following: 

10 (1) An analysis and description of the extent to 

11 which any foreign person who is a citizen of the Peo12 ple’s Republic of China or an entity organized under 

13 the laws of the People’s Republic of China, or any 

14 foreign person or entity controlled by or operating at 

15 the direction of the Government of the People’s Re16 public of China— 

17 (A) is knowingly a material source of crit18 ical components necessary for the manufacture 

19 of weapons, vehicles, and other military equip20 ment by the defense industrial base of the Rus21 sian Federation; 

22 (B) has knowingly delivered critical compo23 nents to or entered into any agreement relating 

24 to the sale or delivery of critical components 

25 with any entity operating in the defense or in-
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1 telligence sectors of the Government of the Rus2 sian Federation; 

3 (C) has knowingly delivered critical compo4 nents to or entered into any agreement relating 

5 to the sale or delivery of critical components 

6 with any country or entity with which the de7 fense or intelligence sectors of the Government 

8 of Russian Federation are cooperating in sup9 port of Russia’s war against Ukraine; or 

10 (D) has knowingly delivered critical compo11 nents to or entered into any agreement relating 

12 to the sale or delivery of critical components 

13 with a foreign person that knowingly and di14 rectly provides these components to the defense 

15 or intelligence sectors of the Government of the 

16 Russian Federation. 

17 (2) The extent to which— 

18 (A) any foreign person that is a citizen of 

19 the People’s Republic of China or an entity or20 ganized under the laws of the People’s Republic 

21 of China has knowingly engaged, on or after the 

22 date of the enactment of this Act, in trans23 actions with a person that is part of, or oper24 ates on behalf of, the defense or intelligence 
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1 sectors of the Government of the Russian Fed2 eration; 

3 (B) any foreign person identified pursuant 

4 to subparagraph (A) has engaged in trans5 actions which would constitute a significant 

6 transaction with persons that have been sanc7 tioned for being part of, or operating on behalf 

8 of, the defense or intelligence sectors of the 

9 Government of the Russian Federation; or 

10 (C) any foreign person identified pursuant 

11 to subparagraph (A) has been subjected to 

12 sanctions imposed pursuant to sections 231 and 

13 235 of the Countering America’s Adversaries 

14 Through Sanctions Act (22 U.S.C. 9525 and 

15 9529). 

16 (b) FORM AND AVAILABILITY.— 

17 (1) FORM.—The report required by subsection 

18 (a) shall be submitted in unclassified form, but may 

19 include a classified annex. 

20 (2) AVAILABILITY.—The unclassified portion of 

21 the report required by subsection (a) may also be 

22 made available to the public. 
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1 SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO ECO2 NOMIC OR INDUSTRIAL ESPIONAGE BY FOR3 EIGN ADVERSARY ENTITIES. 

4 (a) IN GENERAL.—On and after the date that is 30 

5 days after the date of the enactment of this Act, the Presi6 dent (a) may impose the sanctions described in subsection 

7 (c) against any of the foreign persons described in sub8 section (b). 

9 (b) FOREIGN PERSONS DESCRIBED.—A foreign per10 son is described in this subsection if the President deter11 mines on or after the date of the enactment of this Act 

12 that the person is a foreign adversary entity that know13 ingly engages in— 

14 (1) economic or industrial espionage with re15 spect to trade secrets or proprietary information 

16 owned by United States persons; 

17 (2) the provision of material support or services 

18 to a foreign adversaries’ military, intelligence, or 

19 other national security entities; or 

20 (3) the violation of United States export control 

21 laws. 

22 (c) SANCTIONS DESCRIBED.—The sanctions that 

23 may be imposed with respect to a foreign person under 

24 subsection (b) are the following: 

25 (1) PROPERTY BLOCKING.—The exercise of all 

26 powers granted to the President by the International 
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1 Emergency Economic Powers Act (50 U.S.C. 1701 

2 et seq.) to the extent necessary to block and prohibit 

3 all transactions in property and interests in property 

4 of the foreign person if such property and interests 

5 in property are in the United States, come within 

6 the United States, or are or come within the posses7 sion or control of a United States person. 

8 (2) INELIGIBILITY FOR VISAS, ADMISSION, OR

9 PAROLE.— 

10 (A) VISAS, ADMISSION, OR PAROLE.—An 

11 alien described in subsection (b) is— 

12 (i) inadmissible to the United States; 

13 (ii) ineligible to receive a visa or other 

14 documentation to enter the United States; 

15 and 

16 (iii) otherwise ineligible to be admitted 

17 or paroled into the United States or to re18 ceive any other benefit under the Immigra19 tion and Nationality Act (8 U.S.C. 1101 et 

20 seq.). 

21 (B) CURRENT VISAS REVOKED.— 

22 (i) IN GENERAL.—An alien described 

23 in subsection (b) is subject to revocation of 

24 any visa or other entry documentation re-
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1 gardless of when the visa or other entry 

2 documentation is or was issued. 

3 (ii) IMMEDIATE EFFECT.—A revoca4 tion under clause (i) shall take effect im5 mediately and automatically cancel any 

6 other valid visa or entry documentation 

7 that is in the alien’s possession. 

8 (d) EXCEPTIONS.— 

9 (1) EXCEPTION FOR INTELLIGENCE ACTIVI10 TIES.—Sanctions under this section shall not apply 

11 to any activity subject to the reporting requirements 

12 under title V of the National Security Act of 1947 

13 (50 U.S.C. 3091 et seq.) or any authorized intel14 ligence activities of the United States. 

15 (2) EXCEPTION TO COMPLY WITH INTER16 NATIONAL OBLIGATIONS.—Sanctions under sub17 section (c)(2) shall not apply with respect to the ad18 mission of an alien if admitting or paroling the alien 

19 into the United States is necessary to permit the 

20 United States to comply with— 

21 (A) the Agreement regarding the Head22 quarters of the United Nations, signed at Lake 

23 Success June 26, 1947, and entered into force 

24 November 21, 1947, between the United Na25 tions and the United States; or 
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1 (B) other applicable international obliga2 tions. 

3 (3) EXCEPTION TO CARRY OUT OR ASSIST LAW

4 ENFORCEMENT ACTIVITIES.—Sanctions under sub5 section (c)(2) shall not apply with respect to an alien 

6 if admitting or paroling the alien into the United 

7 States is necessary to carry out or assist law en8 forcement activity in the United States. 

9 (e) WAIVER.—The President may waive the applica10 tion of sanctions under this section with respect to a for11 eign person for renewable periods of not more than 180 

12 days each if the President determines and submits to the 

13 appropriate congressional committees a report that con14 tains a determination of the President that such a waiver 

15 is in the national security interests of the United States. 

16 (f) IMPLEMENTATION; PENALTIES.— 

17 (1) IMPLEMENTATION.—The President may ex18 ercise the authorities provided to the President 

19 under sections 203 and 205 of the International 

20 Emergency Economic Powers Act (50 U.S.C. 1702 

21 and 1704) to the extent necessary to carry out this 

22 section. 

23 (2) PENALTIES.—A person that violates, at24 tempts to violate, conspires to violate, or causes a 

25 violation of subsection (a) or any regulation, license, 
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1 or order issued to carry out that subsection shall be 

2 subject to the penalties set forth in subsections (b) 

3 and (c) of section 206 of the International Emer4 gency Economic Powers Act (50 U.S.C. 1705) to the 

5 same extent as a person that commits an unlawful 

6 act described in subsection (a) of that section. 

7 (3) PROCEDURES AND GUIDELINES FOR SANC8 TIONS.—The President shall establish procedures 

9 and guidelines for the implementation and enforce10 ment of sanctions imposed under this section. 

11 (4) ANNUAL REPORT.— 

12 (A) Unless the exception in subparagraph 

13 (B) applies, not later than one year after the 

14 date of the enactment of this Act, and for each 

15 of the 5 years thereafter, the President shall 

16 submit to the appropriate congressional com17 mittees a report on any notable developments 

18 regarding economic or industrial espionage ac19 tivities by foreign persons. 

20 (B) The President shall not be required to 

21 submit the annual report described by subpara22 graph (A) if the President has imposed sanc23 tions as authorized under this section within 

24 the previous calendar year. 
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1 (g) RULE OF CONSTRUCTION.—For purposes of this 

2 section, a transaction shall not be construed to include 

3 participation in an international standards-setting body or 

4 the activities of such a body. 

5 SEC. 5. CLARIFYING AMENDMENTS. 

6 Section 203 of the International Emergency Eco7 nomic Powers Act (50 U.S.C. 1702) is amended— 

8 (1) in subsection (b)— 

9 (A) in the matter preceding paragraph (1), 

10 by striking ‘‘, directly or indirectly’’; 

11 (B) in paragraph (3)— 

12 (i) by striking ‘‘including but not lim13 ited to’’ and all that follows through ‘‘news 

14 wire feeds.’’ and inserting ‘‘except to the 

15 extent that the President determines that 

16 such imports and exports would seriously 

17 impair his ability to deal with any national 

18 emergency declared under section 202.’’; 

19 and 

20 (ii) by striking ‘‘under section 5 of the 

21 Export Administration Act of 1979, or 

22 under section 6 of such Act’’ and inserting 

23 ‘‘under other statutory or regulatory ex24 port control authorities’’; and 
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1 (C) in paragraph (4), by inserting ‘‘, ex2 cept to the extent that the President determines 

3 that such imports and exports would seriously 

4 impair the ability to deal with any national 

5 emergency declared under section 202’’ before 

6 the period at the end; and 

7 (2) by adding at the end the following: 

8 ‘‘(d) RULES OF CONSTRUCTION RELATING TO SEN9 SITIVE AND PERSONAL DATA.—The communication, the 

10 importation to a country, or the exportation from a coun11 try, directly or indirectly, whether commercial or other12 wise, of bulk sensitive personal data or of source code used 

13 in a connected software application may not be construed 

14 to constitute— 

15 ‘‘(1) a ‘postal, telegraphic, telephonic, or other 

16 personal communication’, for purposes of subsection 

17 (b)(1); or 

18 ‘‘(2) an importation from a country, or an ex19 portation to a country, of ‘information or informa20 tional materials’, for purposes of subsection (b)(3).’’. 

21 SEC. 6. DEFINITIONS. 

22 In this Act: 

23 (1) APPROPRIATE CONGRESSIONAL COMMIT24 TEES.—The term ‘‘appropriate congressional com25 mittees’’ means— 
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1 (A) the Committee on Foreign Affairs of 

2 the House of Representatives; and 

3 (B) the Committee on Foreign Relations of 

4 the Senate. 

5 (2) ECONOMIC OR INDUSTRIAL ESPIONAGE.— 

6 The term ‘‘economic or industrial espionage’’ has 

7 the meaning given that term in section 1637(d) of 

8 the Carl Levin and Howard P. ‘‘Buck’’ McKeon Na9 tional Defense Authorization Act for Fiscal Year 

10 2015. 

11 (3) FOREIGN PERSON.—The term ‘‘foreign per12 son’’ means any person that is not a United States 

13 person. 

14 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 

15 respect to conduct, a circumstance, or a result, 

16 means that a person has actual knowledge, or should 

17 have known, of the conduct, the circumstance, or the 

18 result. 

19 (5) OWN, PROPRIETARY INFORMATION, AND

20 TRADE SECRET.—The terms ‘‘own’’, ‘‘proprietary in21 formation’’, and ‘‘trade secret’’ have the meanings 

22 given those terms in section 1637(d) of the Carl 

23 Levin and Howard P. ‘‘Buck’’ McKeon National De24 fense Authorization Act for Fiscal Year 2015 (50 

25 U.S.C. 1708(d)). 
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1 (6) PERSON.—The term ‘‘person’’ means an in2 dividual or entity. 

3 (7) UNITED STATES PERSON.—The term 

4 ‘‘United States person’’ means— 

5 (A) a United States citizen or an alien law6 fully admitted for permanent residence to the 

7 United States; or 

8 (B) an entity organized under the laws of 

9 the United States or any jurisdiction within the 

10 United States, including a foreign branch of 

11 such an entity. 

12 (8) FOREIGN ADVERSARY.—The term ‘‘foreign 

13 adversary’’ means the countries listed in section 7.4 

14 of title 15, Code of Federal Regulations. 

Passed the House of Representatives September 9, 

2024. 

Attest: 

Clerk. 
118TH CONGRESS 

2D SESSION H. R. 8361 

AN ACT 

To impose sanctions with respect to economic or innies, and for other purposes. dustrial espionage by foreign adversarial compa-