I 
119TH CONGRESS 
1ST SESSION H. R. 1486 
To impose sanctions with respect to economic or industrial espionage by 
foreign adversarial companies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 21, 2025 
Mr. MCCORMICK (for himself and Mr. MOOLENAAR) introduced the following 
bill; which was referred to the Committee on Foreign Affairs, and in ad-
dition to the Committee on the Judiciary, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
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 Representa-
tives 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: 
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(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 sub-
stantially since Russia’s full-scale invasion of 
Ukraine. 
(B) In the second half of 2023, China ex-
ported 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 ex-
ported 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 (in-
tegrated circuits), according to analysis of com-
mercially 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 Ukrain-
ian analysis of recovered Russian weapons. 
(E) Because of the prevalence of United 
States manufacturing equipment in global semi-
conductor supply chains, nearly all chips pro-
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duced worldwide, including in the People’s Re-
public 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 sub-
ject 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 as-
sessed, over the course of the last couple of months 
that Russia has almost completely reconstituted 
militarily. And after the initial setbacks on the bat-
tlefield delivered to them by a brave and hearty 
group in Ukraine, with the support of China in par-
ticular, dual use capabilities and a variety of other 
efforts, industrial and commercial, Russia has re-
tooled 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, 
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in coordination with the heads of relevant Federal depart-
ments 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 Peo-
ple’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 Re-
public of China— 
(A) is knowingly a material source of crit-
ical components necessary for the manufacture 
of weapons, vehicles, and other military equip-
ment by the defense industrial base of the Rus-
sian Federation; 
(B) has knowingly delivered critical compo-
nents to or entered into any agreement relating 
to the sale or delivery of critical components 
with any entity operating in the defense or in-
telligence sectors of the Government of the Rus-
sian Federation; 
(C) has knowingly delivered critical compo-
nents to or entered into any agreement relating 
to the sale or delivery of critical components 
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with any country or entity with which the de-
fense or intelligence sectors of the Government 
of Russian Federation are cooperating in sup-
port of Russia’s war against Ukraine; or 
(D) has knowingly delivered critical compo-
nents to or entered into any agreement relating 
to the sale or delivery of critical components 
with a foreign person that knowingly and di-
rectly 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 or-
ganized 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 trans-
actions with a person that is part of, or oper-
ates on behalf of, the defense or intelligence 
sectors of the Government of the Russian Fed-
eration; 
(B) any foreign person identified pursuant 
to subparagraph (A) has engaged in trans-
actions which would constitute a significant 
transaction with persons that have been sanc-
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tioned 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 ECO-
NOMIC OR INDUSTRIAL ESPIONAGE BY FOR-
EIGN ADVERSARY ENTITIES. 
(a) IN GENERAL.—On and after the date that is 30 
days after the date of the enactment of this Act, the Presi-
dent (a) may impose the sanctions described in subsection 
(c) against any of the foreign persons described in sub-
section (b). 
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(b) FOREIGN PERSONS DESCRIBED.—A foreign per-
son is described in this subsection if the President deter-
mines on or after the date of the enactment of this Act 
that the person is a foreign adversary entity that know-
ingly engages in— 
(1) economic or industrial espionage with re-
spect 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 posses-
sion or control of a United States person. 
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(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 re-
ceive any other benefit under the Immigra-
tion 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 re-
gardless of when the visa or other entry 
documentation is or was issued. 
(ii) IMMEDIATE
EFFECT.—A revoca-
tion under clause (i) shall take effect im-
mediately and automatically cancel any 
other valid visa or entry documentation 
that is in the alien’s possession. 
(d) EXCEPTIONS.— 
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(1) EXCEPTION
FOR
INTELLIGENCE
ACTIVI-
TIES.—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 intel-
ligence activities of the United States. 
(2) EXCEPTION
TO
COMPLY
WITH
INTER-
NATIONAL
OBLIGATIONS.—Sanctions under sub-
section (c)(2) shall not apply with respect to the ad-
mission 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 Head-
quarters of the United Nations, signed at Lake 
Success June 26, 1947, and entered into force 
November 21, 1947, between the United Na-
tions and the United States; or 
(B) other applicable international obliga-
tions. 
(3) EXCEPTION TO CARRY OUT OR ASSIST LAW 
ENFORCEMENT
ACTIVITIES.—Sanctions under sub-
section (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 en-
forcement activity in the United States. 
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(e) WAIVER.—The President may waive the applica-
tion of sanctions under this section with respect to a for-
eign 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 con-
tains 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 ex-
ercise 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, at-
tempts 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 Emer-
gency 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 SANC-
TIONS.—The President shall establish procedures 
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and guidelines for the implementation and enforce-
ment 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 com-
mittees a report on any notable developments 
regarding economic or industrial espionage ac-
tivities by foreign persons. 
(B) The President shall not be required to 
submit the annual report described by subpara-
graph (A) if the President has imposed sanc-
tions 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. CLARIFYING AMENDMENTS. 
Section 203 of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1702) is amended— 
(1) in subsection (b)— 
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(A) in the matter preceding paragraph (1), 
by striking ‘‘, directly or indirectly’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘including but not lim-
ited to’’ and all that follows through ‘‘news 
wire feeds.’’ and inserting ‘‘except to the 
extent that the President determines that 
such imports and exports would seriously 
impair his ability to deal with any national 
emergency declared under section 202.’’; 
and 
(ii) by striking ‘‘under section 5 of the 
Export Administration Act of 1979, or 
under section 6 of such Act’’ and inserting 
‘‘under other statutory or regulatory ex-
port control authorities’’; and 
(C) in paragraph (4), by inserting ‘‘, ex-
cept to the extent that the President determines 
that such imports and exports would seriously 
impair the ability to deal with any national 
emergency declared under section 202’’ before 
the period at the end; and 
(2) by adding at the end the following: 
‘‘(d) RULES OF CONSTRUCTION RELATING TO SEN-
SITIVE AND PERSONAL DATA.—The communication, the 
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importation to a country, or the exportation from a coun-
try, directly or indirectly, whether commercial or other-
wise, of bulk sensitive personal data or of source code used 
in a connected software application may not be construed 
to constitute— 
‘‘(1) a ‘postal, telegraphic, telephonic, or other 
personal communication’, for purposes of subsection 
(b)(1); or 
‘‘(2) an importation from a country, or an ex-
portation to a country, of ‘information or informa-
tional materials’, for purposes of subsection (b)(3).’’. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ 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 Na-
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tional Defense Authorization Act for Fiscal Year 
2015. 
(3) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ 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 in-
formation’’, and ‘‘trade secret’’ have the meanings 
given those terms in section 1637(d) of the Carl 
Levin and Howard P. ‘‘Buck’’ McKeon National De-
fense Authorization Act for Fiscal Year 2015 (50 
U.S.C. 1708(d)). 
(6) PERSON.—The term ‘‘person’’ means an in-
dividual or entity. 
(7) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a United States citizen or an alien law-
fully admitted for permanent residence to the 
United States; or 
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(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. 
Æ 
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