House passes bill to sanction foreign companies engaged in economic espionage

The US House of Representatives has passed legislation aimed at sanctioning foreign companies engaged in economic and industrial espionage against American businesses. The bill specifically targets entities from China, Russia, Iran, North Korea, Cuba and Venezuela’s Maduro regime, amid ongoing concerns about foreign theft of US trade secrets and intellectual property.

The Economic Espionage Prevention Act (H.R. 1486), introduced by Rep. Richard McCormick (R-GA), passed the House by voice vote on Monday and has been referred to the Senate Foreign Relations Committee, according to the legislative record.

‘This bill authorizes the President to impose visa- and property-blocking sanctions on foreign adversary entities that knowingly engage in economic and industrial espionage with respect to trade secrets and proprietary information owned by U.S. persons,’ according to the congressional summary of the legislation.

The measure also expands presidential authority under the International Emergency Economic Powers Act (‘IEEPA’) by limiting certain exemptions that previously restricted sanctions implementation in cases involving informational materials and transactions related to international travel. Under the bill, these exemptions would no longer apply if the President determines such activities ‘would seriously impair the ability to deal with a declared national emergency’.

The push for tougher regulations comes as US officials and intelligence agencies continue to raise alarms over foreign efforts to obtain American technological advancements, particularly in fields such as semiconductor production, artificial intelligence and defence technology. The FBI and the Office of the US Trade Representative have previously identified China and Russia as leading state actors involved in economic espionage, often using cyber theft and corporate infiltration to obtain sensitive information.

Recent intelligence reports have highlighted growing concerns over foreign data collection efforts, particularly regarding China’s use of technology firms to access US consumer data and software vulnerabilities.

The bill, which had three Republican cosponsors – Michigan’s John Moolenaar, Michael Baumgartner who represents Washington, and New York’s Michael Lawler – was passed under suspension of the rules, an expedited procedure typically used for non-controversial measures.

https://www.congress.gov/bill/119th-congress/house-bill/1486/all-info