H.R. 1486House119th Congress (2025-2027)Passed House

Economic Espionage Prevention Act

Introduced February 21, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:31 AM UTC

The Economic Espionage Prevention Act authorizes the U.S. government to sanction foreign individuals and companies—particularly those linked to China—that steal U.S. trade secrets, violate export controls, or supply critical semiconductor components to Russia’s military. It requires a detailed report on such activities, gives the President authority to block assets and deny visas, and sets up ongoing reporting and waiver mechanisms. The law targets non‑U.S. persons engaged in economic or industrial espionage and related support to foreign adversaries.

Key Provisions

  • Within 90 days the Secretary of State must submit a report describing any Chinese‑linked persons or entities that are supplying critical semiconductor components to Russia’s defense sector or violating U.S. export controls.
  • Starting 30 days after enactment, the President may sanction any foreign person (non‑U.S.) who knowingly engages in economic/industrial espionage against U.S. trade secrets, provides material support to a foreign adversary’s military or intelligence, or breaches U.S. export‑control laws.
  • Sanctions can include blocking all property and interests in the United States, and making the person inadmissible to the U.S., revoking any existing visas, and denying future visas.
  • The law provides limited exceptions for U.S. intelligence activities, compliance with international obligations, and law‑enforcement cooperation, and allows the President to waive sanctions for up to 180‑day periods with congressional notification.
  • The President must issue procedures for enforcing the sanctions and submit an annual report on espionage activities, unless sanctions were already imposed in the prior year.
  • The act clarifies that sanctions do not apply to the importation of goods (excluding technical data).

Legislative Activity

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8 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Foreign Relations.

May 6, 2025

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HouseIntro Referral

Introduced in House

February 21, 2025

HouseIntro Referral

Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

February 21, 2025

HouseFloor

Mr. Mast moved to suspend the rules and pass the bill, as amended.

May 5, 2025 • 3:46 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H1828-1830)

May 5, 2025 • 3:46 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 1486.

May 5, 2025 • 3:46 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1828-1829: 1)

May 5, 2025 • 3:55 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1828-1829)

May 5, 2025 • 3:55 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

May 5, 2025 • 3:56 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Foreign Relations.

May 6, 2025

Floor Debate

3 members

What members said about H.R. 1486 on the floor

2 Republicans1 Democrat
Brian J. Mast
Rep. Brian J. MastR-FL-21 · May 5, 2025

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1486) to impose sanctions with respect to economic or industrial espionage by foreign adversarial companies, and for other purposes,…

Johnny Olszewski, Jr.
Rep. Johnny Olszewski, Jr.D-MD-2 · May 5, 2025

Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I rise in support of H.R. 1486. This is legislation that authorizes sanctions against any person or entity that provides…

Richard McCormick
Rep. Richard McCormickR-GA-7 · May 5, 2025

Madam Speaker, I thank Chairman Mast and the minority party for supporting this bill. Since illegally invading Ukraine, the Russian Federation has become reliant on the People's Republic of China for…

Bill Text

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Latest
Referred in SenateIssued May 6, 2025

IIB

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.


1.

Short title

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

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..

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.

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.

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.

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.

Kevin F. McCumber,

Clerk.