H.R.1486 - Economic Espionage Prevention Act (119th Congress)
Summary
H.R.1486, the Economic Espionage Prevention Act, aims to impose sanctions on foreign entities, particularly those associated with adversarial nations like the People's Republic of China, that engage in economic or industrial espionage against the United States. The bill is motivated by concerns over the transfer of sensitive technologies, especially semiconductors, to countries like Russia, which could bolster their military capabilities. It mandates a report from the Secretary of State detailing the extent of foreign entities' involvement in providing critical components to Russia's defense industrial base.
Expected Effects
The bill's enactment would likely lead to increased scrutiny and potential sanctions on foreign companies suspected of economic espionage or supporting adversarial nations. This could disrupt supply chains and impact international trade relationships, particularly with China. The legislation also seeks to clarify and strengthen the President's authority under the International Emergency Economic Powers Act (IEEPA) to address emerging threats related to data and technology.
Potential Benefits
- Protection of U.S. Intellectual Property: The Act aims to safeguard trade secrets and proprietary information of U.S. companies.
- National Security: By preventing the transfer of critical technologies to adversarial nations, the Act enhances U.S. national security.
- Economic Competitiveness: Protecting U.S. businesses from economic espionage can bolster their competitiveness in the global market.
- Deterrence: The threat of sanctions may deter foreign entities from engaging in economic espionage.
- Support for Ukraine: By limiting Russia's access to critical components, the Act indirectly supports Ukraine's defense.
Potential Disadvantages
- Potential for Retaliation: Sanctions could lead to retaliatory measures from other countries, harming U.S. businesses.
- Supply Chain Disruptions: Increased scrutiny and sanctions could disrupt global supply chains, potentially increasing costs for U.S. consumers.
- Increased Trade Tensions: The Act could exacerbate trade tensions with countries like China.
- Implementation Challenges: Defining and proving economic espionage can be complex and resource-intensive.
- Overreach: Broadly defined sanctions could unintentionally harm legitimate international collaborations.
Constitutional Alignment
The bill aligns with the constitutional power of Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3) and to provide for the common defense (Article I, Section 8, Clause 1). The imposition of sanctions falls under the President's authority to conduct foreign policy, though subject to congressional oversight. The bill also includes provisions for waivers and exceptions, ensuring flexibility in implementation and compliance with international obligations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).