Economic Espionage Prevention Act

This legislation mandates the Secretary of State to submit a detailed report to Congress within 90 days of enactment. The report must analyze the extent to which Chinese persons or entities knowingly provide critical components to the Russian Federation's defense industrial base, engage in transactions with Russia's defense or intelligence sectors, or support countries cooperating with Russia's war against Ukraine. These findings are crucial, as the bill highlights significant increases in China's semiconductor exports to Russia, supporting its military capabilities despite U.S. export controls. Furthermore, the bill grants the President authority to impose sanctions on foreign adversary entities that knowingly engage in specific harmful activities. These activities include economic or industrial espionage targeting U.S. persons' trade secrets, providing material support or services to a foreign adversary's military, intelligence, or national security entities, or violating United States export control laws . The sanctions can involve blocking property and interests in property within U.S. jurisdiction and rendering individuals ineligible for U.S. visas or admission. The legislation includes exceptions for U.S. intelligence activities, international obligations, or assisting law enforcement, and allows the President to waive sanctions for national security interests. Notably, the bill explicitly states that the sanctions authority does not extend to the importation of goods. An annual report on economic or industrial espionage activities is also required, unless sanctions have been imposed in the preceding year.