Economic Espionage Prevention Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 8361) to impose sanctions with respect to economic or industrial espionage by foreign adversarial companies, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this measure.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in strong support of H.R. 8361, the Economic Espionage Prevention Act, introduced by my colleague and friend from Georgia, Mr. McCormick.

Today, our adversaries are working more closely than ever before. The Chinese Communist Party is providing massive industrial and economic support to Russia's renewed invasion of Ukraine.

In fact, our State Department assesses that in the second half of 2023, China supported the transfer of nearly $300 million worth of semiconductors to Russia, including for use in missiles and drones.

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 . . . with the support of China in particular.''

The Economic Espionage Prevention Act is therefore essential to changing the nature of the battlefield in Ukraine. This bill addresses cooperation between the CCP and Russia's defense industrial base by providing for sanctions against Chinese and Iranian individuals and entities that violate U.S. export control laws, engage in economic or industrial espionage, or support the Russian defense industrial base.

The bill also requires the State Department to issue a report identifying Chinese individuals and entities that are supporting the Russian defense industrial base.

The United States and our allies cannot stand for China's decisive support

of Russia's illegal war of aggression against Ukraine. The Chinese companies providing that support must be subjected to the full weight of our sanctions regime.

Mr. Speaker, I urge my colleagues to support this bipartisan bill, and I reserve the balance of my time.

House of Representatives,

Committee on the Judiciary,

Washington, DC, September 3, 2024.

Hon. Michael McCaul,

Chairman, Committee on Foreign Affairs,

House of Representatives, Washington, DC.

Dear Chairman McCaul: I write regarding H.R. 8361, the

Economic Espionage Prevention Act. Provisions of this bill

fall within the Judiciary Committee's rule X jurisdiction,

and I appreciate that you consulted with us on those

provisions. The Judiciary Committee agrees that it shall be

discharged from further consideration of the bill so that it

may proceed expeditiously to the House floor.

The Committee takes this action with the understanding that

forgoing further consideration of this measure does not in

any way alter the Committee's jurisdiction or waive any

future jurisdictional claim over these provisions or their

subject matter. We also reserve the right to seek appointment

of an appropriate number of conferees in the event of a

conference with the Senate involving this measure or similar

legislation.

I ask that you please include this letter in your

committee's report to accompany this legislation or insert

this letter in the Congressional Record during consideration

of H.R. 8361 on the House floor. I appreciate the cooperative

manner in which our committees have worked on this matter,

and I look forward to working collaboratively in the future

on matters of shared jurisdiction. Thank you for your

attention to this matter.

Sincerely,

Jim Jordan,

Chairman.

Mr. Speaker, I yield 5 minutes to the gentleman from Georgia (Mr. McCormick), a member of the Committee on Foreign Affairs and the author of this bill.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, I thank Representative McCormick for his bill and for his service, as well as Chairman McCaul, Ranking Member Meeks, and Judiciary Committee Chairman Jim Jordan for working to bring this bipartisan bill to the floor to ensure that we address China's support for Russia's defense industrial base.

There should be no doubt that the Chinese Communists are aiding and abetting Putin in his illegal aggression against Ukraine. General Secretary Xi and Putin have described the bilateral alliance between the PRC and Russia as a no-limits relationship. The material support that China is providing Russia with the semiconductors is evidence of that.

Mr. Speaker, that is why I urge all Members to support H.R. 8361, and I yield back the balance of my time.

Mr. Speaker, I rise in strong support of H.R. 8361, as amended, and I yield myself such time as I may consume.

Mr. Speaker, 2\1/2\ years ago, we saw an unprovoked and brutal invasion of Ukraine by Russia, an act that has destabilized Europe and challenged the principles of sovereignty and self-determination. This blatant aggression is a direct attack on the international order that has kept the peace for decades.

Though Russia's illegal behavior is uniquely indefensible, countries such as China that have aggressively done business with the Russian military-industrial defense base are certainly not blameless.

The United States Government, including the House Committee on Foreign Affairs in a bipartisan manner, has engaged in extensive diplomacy to discourage countries from providing financial and material support for the Russian invasion.

The Biden-Harris administration has also used economic statecraft, including expansive export controls, to prevent key dual-use electronics items from reaching Moscow. Full blocking sanctions are a particularly formidable economic weapon, and the Biden-Harris administration has begun to use this part of the arsenal.

Bipartisan support for this legislation affirms that position, and financial sanctions must be on the table.

Finally, by imposing sanctions on the PRC and other entities that are fueling Russia's military machine, we send a clear message: We will not stand idly by while Ukraine's sovereignty is trampled.

This bill underscores the importance of unity among nations in opposing tyranny and supporting democracy.

Mr. Speaker, I encourage my colleagues to support this bill, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, H.R. 8361, as amended, is a valuable bill that grants the administration important authorities with necessary flexibility to sanction the PRC and other foreign businesses in league with the Russian defense industry base. I think this is something we all agree upon, and I urge all of my colleagues to vote ``yea'' on this legislation.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, since illegally invading Ukraine, the Russian Federation has become reliant on the People's Republic of China for the supply of semiconductors and other critical dual-use technologies.

The State Department notified Congress this March that the PRC exports of semiconductors significantly increased last year compared to the pre-invasion levels.

These semiconductors are critical to aspects of the Russian war effort, including electronic warfare, command and control, and targeting. These components allow Russia to terrorize Ukrainian civilians with ballistic missile strikes at will.

The prevalence of U.S. manufacturing equipment in global semiconductor production means nearly all are subject to U.S. export controls if destined for Russia or Belarus.

My bill seeks to reduce Russia's access to these semiconductors by authorizing sanctions on foreign countries and adversaries that materially support Russia's military and intelligence services, violate U.S. export laws, and steal U.S. intellectual property.

It further requires a report on whether China is providing significant support to Russia's military and updates existing law to provide greater flexibility to pursue sanctions against China and other foreign adversaries if they violate these export controls.

The PRC may publicly claim that they do not provide material support to the Russian invasion of Ukraine, but their continued provision of dual-use technologies with military applications demonstrates otherwise.

Cutting off the supply of semiconductors will seriously hamper the Russian war effort and show the world that we will not allow our adversaries to work together in destroying sovereign nations and undermining the international system.

I thank Chairman McCaul, Ranking Member Meeks, and my bipartisan colleagues on the Committee on Foreign Affairs for supporting the bill before us today. I urge my colleagues to support H.R. 8361.