Economic Espionage Bill Grants President Power to Freeze Assets, Ban Visas Over Export Violations

This bill, the Economic Espionage Prevention Act, is basically a national security package that gives the President new, powerful tools to punish foreign entities that steal U.S. trade secrets or help adversaries like Russia. It’s a direct response to intelligence findings showing a significant jump in semiconductor exports from China to Russia since the invasion of Ukraine, with estimates showing tens of millions of dollars in extra chip exports monthly (SEC. 2).

The China-Russia Connection: What the Report Will Reveal

The first big action item in this bill is transparency. Within 90 days of enactment, the State Department must deliver a detailed, unclassified report to Congress on exactly how Chinese citizens or companies are helping Russia’s defense industry (SEC. 3). This isn't just about general trade; the report must track whether Chinese actors are knowingly supplying essential components for weapons or military equipment to Russian defense or intelligence entities. It also needs to detail specific transactions and whether those actors have already been hit with sanctions under existing laws. For those of us keeping score, this report is the government’s way of putting the receipts out for public view.

New Hammer: Asset Freezes and Automatic Visa Bans

Section 4 is where the real teeth of this bill lie. It grants the President the authority to impose severe sanctions on any "foreign adversary entity" that knowingly engages in one of three activities: 1) economic or industrial espionage against U.S. companies, 2) providing significant support to a foreign adversary’s military or intelligence apparatus, or 3) violating U.S. export control laws. This is a broad mandate.

If a foreign person or entity is targeted, the President can use the International Emergency Economic Powers Act (IEEPA) to freeze all their assets that are in the U.S. or controlled by a U.S. person. Even more impactful, if they are a non-U.S. citizen, they become automatically inadmissible to the U.S., and any visa they hold—even if it’s currently valid—is immediately and automatically revoked (SEC. 4). This means someone’s business trip or family visit could be instantly canceled if their company is flagged for, say, selling advanced chips to a sanctioned Russian entity.

The Fine Print: Waivers and Exceptions

While these powers are sweeping, there are a few checks and balances—or lack thereof. The President can waive these sanctions for renewable 180-day periods if they determine it is in the national security interest of the U.S., but they only need to report that justification to Congress. This means the power to punish and the power to forgive are both concentrated in the executive branch. On the flip side, the bill explicitly carves out exceptions for authorized U.S. intelligence activities, and it clarifies that visa restrictions cannot be used if admitting the person is necessary for international agreements or law enforcement (SEC. 4).

One interesting note for global business: Section 5 clarifies that the government cannot use this Act to sanction people by blocking the importation of physical goods. So, while assets can be frozen and visas revoked, the power to stop a shipment of widgets at the border isn't part of this specific law. This exclusion applies to all physical articles but not to technical data like software or blueprints.

Ultimately, this bill is less about creating new crimes and more about establishing swift, high-impact penalties—asset freezes and travel bans—for foreign actors already breaking existing rules around export controls and intellectual property theft. It’s a clear escalation of how the U.S. plans to police its technology and trade secrets on the global stage.