The bill
Economic Espionage Prevention Act
HR. 1486, 119th Congress — read as touching Semiconductors & Hardware.
Sponsored by
Rep. McCormick, Richard [R-GA-7]
ID: M001218
Follow the money
The bill
HR. 1486, 119th Congress — read as touching Semiconductors & Hardware.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
20 itemised contributions to this sponsor, pulled from FEC filings.
The alignment
This bill's text tracks the "Trade" section, p. 816-818 of the Mandate for Leadership.
Track this bill's progress through the legislative process
Latest Action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
May 5, 2025
📍 Current Status
Next: Both chambers must agree on the same version of the bill.
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Another brilliant example of congressional theater, where our esteemed leaders pretend to care about national security while lining their pockets with lobby money.
**Main Purpose & Objectives:** The Economic Espionage Prevention Act (HR 1486) claims to impose sanctions on foreign entities engaging in economic or industrial espionage against the United States. The bill's primary objective is to punish China for allegedly supporting Russia's military capabilities by exporting semiconductors and other critical components.
**Key Provisions & Changes to Existing Law:** The bill requires the Secretary of State to submit a report within 90 days, detailing Chinese entities involved in transactions with Russia's defense or intelligence sectors. The President can then impose sanctions on these entities, including asset freezes, travel bans, and export restrictions. This is just a rehashing of existing laws, with some minor tweaks to make it sound like they're doing something new.
**Affected Parties & Stakeholders:** The usual suspects are affected: Chinese companies, Russian defense contractors, and anyone else who might be caught in the crossfire. But let's not forget the real stakeholders – the politicians and lobbyists who will benefit from this bill. They'll get to grandstand about national security while raking in campaign donations from the defense industry.
**Potential Impact & Implications:** This bill is a joke. It won't stop China or Russia from doing whatever they want, but it might give our politicians some nice soundbites for their re-election campaigns. The real impact will be on American businesses that rely on Chinese components and technology – they'll face increased costs, delays, and bureaucratic headaches.
In medical terms, this bill is a placebo – it looks like treatment, but it won't actually cure the disease. The disease, in this case, is corruption, incompetence, and greed. Our politicians are just treating the symptoms while ignoring the underlying illness.
Diagnosis: Terminal Stupidity Syndrome (TSS). Symptoms include:
* Grandstanding about national security without actual action * Ignoring the root causes of economic espionage (e.g., our own country's lack of investment in R&D) * Prioritizing campaign donations over effective policy
Prognosis: Poor. This bill will not address the real issues, and we'll be back to square one soon enough.
Rep. McCormick, Richard [R-GA-7]
Congress 119 • 2024 Election Cycle
No PAC contributions found
No organization contributions found
No committee contributions found
This bill has 3 cosponsors. Below are their top campaign contributors.
ID: M001194
Top Contributors
10
ID: B001322
Top Contributors
10
ID: L000599
Top Contributors
10
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 57 nodes and 29 connections (42 secondary connections hidden)
Total contributions: $173,600
Showing top 19 donors by contribution amount
Which industries are materially affected by specific provisions in this bill. 3 harmed.
Section 2 findings note China's export of semiconductors to Russia, and Section 4(b)(3) allows sanctions for violation of U.S. export control laws, which would affect semiconductor manufacturers and exporters.
Section 4(b)(2) targets provision of material support to foreign adversaries' military, intelligence, or national security entities, which could impact defense contractors engaging with sanctioned foreign persons.
Section 4(b)(1) covers economic or industrial espionage with respect to trade secrets or proprietary information owned by U.S. persons, which could apply to AI and cloud firms' intellectual property.
This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.
AI Analysis:
"The bill directly targets Chinese economic and industrial espionage that supports Russia's military, mirroring Project 2025's focus on countering Communist China's economic aggression, technology‑forcing policies, and IP theft through trade‑related sanctions and export controls."
— 783 — Trade tariffs.17 A conservative Administration might do well to look at such a tax as part of its trade agenda. CHALLENGE #2: COMMUNIST CHINA’S ECONOMIC AGGRESSION AND QUEST FOR WORLD DOMINATION18 Among all of its bilateral trade relationships, America’s relationship with Com- munist China is the most fraught with difficulty. The problem is not just that the relentlessly mercantilist and protectionist trade policies that China has pursued ever since its accession to the WTO in 2001 have led to chronic, massive, and ever-expanding trade deficits. Communist China’s economic aggression in the traditional trade policy space is further facilitated by equally aggressive industrial policies and technology transfer–forcing policies that are designed to shift the world’s manufacturing and supply chains to Communist Chinese soil. The Chinese Communist Party’s policy goal is to propel the Chinese economy, but its broader goal is to strengthen Communist China’s defense industrial base and associated warfighting capabilities. That China unabashedly seeks to supplant America as the world’s dominant economic and military power is not in dispute. Rather, it is a prominent feature of Communist Chinese dictator Xi Jinping’s rhet- oric. Xi has promised that the deed will be done by 2049, the 100-year anniversary of the Communist takeover of the Mainland.19 In light of Communist China’s broader geopolitical and military agenda, the American President who takes office in January 2025 must view the U.S.–China trade relationship and associated policy reforms within the context of the broader existential threat posed by Communist China. The question is whether that next President should seek to decouple economically and financially from Communist China as America’s first best response to China’s unrelenting aggression or con- tinue efforts to negotiate with an authoritarian country and brutal dictatorship with a well-established reputation for failing to abide by any agreements it enters. Institutionalized Aggression. Table 5 depicts more than 50 types of policy aggression institutionalized by the CCP across six different categories of such aggression. Viewed as whole, the extent of Communist China’s aggression is breathtaking. At the trade policy level, Communist China relies heavily on a wide range of mercantilist and protectionist tools to protect its own markets and unfairly exploit foreign markets. These instruments of Communist Chinese trade aggression include high tariffs and nontariff barriers, currency manipulation, a heavy reli- ance on sweatshop labor and pollution havens, the dumping of unfairly subsidized exports, and widespread counterfeiting and piracy: Communist China is the world’s largest source of counterfeit and pirated products. In addition, Communist Chinese enterprises benefit from preferential policies that have burdened world markets with subsidized overcapacity. The resultant glut — 784 — Mandate for Leadership: The Conservative Promise of Communist Chinese exports in turn depresses world prices and pushes foreign rivals out of the global market—steel is a major example.20 Industrial policy tools that further reinforce Communist China’s mercantilist and protectionist trade policies include numerous direct and indirect subsidies to boost exports and the consolidation of heavily subsidized state-owned enterprises into “national champi- ons” that can compete with foreign companies in both domestic and global markets. Communist China also uses a predatory “debt trap” model of economic develop- ment aid that proffers substantial financing to developing countries in exchange for their willingness to mortgage their natural resources and allow Communist China access to their markets. The practical effect of this debt trap model is to give Com- munist China a competitive edge internationally that stems from its preferential access to relatively lower-cost commodities needed in the manufacturing process. These commodities range from bauxite, copper, and nickel to rarer commodities such as beryllium, titanium, and rare earth minerals. As a complement to this debt trap gambit and to exploit its commanding share of a wide range of critical raw materials that are essential to the global supply chain and production of high-technology and high-value-added products, Com- munist China strategically uses protectionist export restraints, including export quotas and export duties. These export restraints thereby restrict access to raw materials such as rare earth, tungsten, and molybdenum that are essential in the high-technology production space. The result is to drive up world prices and thereby put pressure on American and other foreign downstream producers to move their operations, technologies, and jobs to Communist China. American industries that have been affected by Communist China’s export restraints range from steel, chemicals, and electric cars to wind turbines, lasers, semiconductors, and refrigerants. Technology-Forcing Policies. Table 6, extracted from the White House Office of Trade and Manufacturing Policy’s report on Communist China’s economic aggression,21 provides a summary of the various policies the Chinese Communist Party uses to force the transfer of the West’s technologies to Communist Chinese soil. Formally, Communist Chinese industrial policy seeks to promote the “diges- tion, absorption, and re-innovation” of technologies and intellectual property (IP) from around the world.22 As noted in Table 6, this policy is carried out, for example, through state-spon- sored IP theft—coercive and intrusive regulatory gambits to force technology transfer, typically in exchange for limited access to the Chinese market. Commu- nist China’s looting of American technology is further enhanced by “information harvesting” conducted by Communist Chinese nationals who infiltrate U.S. uni- versities, national laboratories, and other centers of innovation. Strategic sectors targeted by Communist Chinese economic espionage have included electronics, telecommunications, robotics, data services, pharmaceuticals, mobile phone
AI Analysis:
"The bill aligns strongly with Project 2025's focus on tightening export controls against China and Russia, particularly through sanctions on entities supporting adversarial military capabilities and enhancing enforcement mechanisms. Both emphasize countering civil-military fusion strategies and restricting technology transfers that bolster authoritarian regimes."
— 673 — Department of Commerce Export Enforcement officers through improved and frequent training so they are able to detect export-control violations. EAR Revisions. The U.S. Government needs a new export control moderniza- tion effort to tighten the EAR policies governing licenses to countries of concern, including China and Russia (specifically, revise and/or reverse the 2008 through 2016 policies). When authoritarian governments explain what they plan to do, believe them unless hard evidence demonstrates otherwise. Case in point: China’s and Russia’s stated civil–military fusion policies demand central government command-and-control style systems in which every private entity serves the interests of the state and is forced to provide technology, services, capacity, and data to the central govern- ment and the military. Through this structure, commercial activities are routinely weaponized by authoritarian regimes that repeatedly identify the U.S. as an enemy. Accordingly, U.S. export control policies must be updated to reflect these realities and the associated threats to national security. Key priorities for EAR modernization for countries of concern should be: l Eliminating the “specially designed” licensing loophole; l Redesignating China and Russia to more highly prohibitive export licensing groups (country groups D or E); l Eliminating license exceptions; l Broadening foreign direct product rules; l Reducing the de minimis threshold from 25 percent to 10 percent—or 0 percent for critical technologies; l Tightening the deemed export rules to prevent technology transfer to foreign nationals from countries of concern; l Tightening the definition of “fundamental research” to address exploitation of the open U.S. university system by authoritarian governments through funding, students and researchers, and recruitment; l Eliminating license exceptions for sharing technology with controlled entities/countries through standards-setting “activities” and bodies; and l Improving regulations regarding published information for technology transfers. — 674 — Mandate for Leadership: The Conservative Promise The next few years will prove or disprove the assertion that the U.S. stands on the precipice of a Cold War with China. Many believe that a Cold War has already begun; if so, then strategic decoupling from China is necessary and, fundamentally, any exports of goods, software, and technology to countries of concern, whether directly or indirectly, should be prohibited or controlled in the absence of good cause (e.g., humanitarian and medical aid, food aid). Entity List and Sanctions. There are currently just over 500 Chinese and over 500 Russian companies on the Department of Commerce’s Entity List, which reg- ulates exports of controlled and uncontrolled items to designated entities. Given China’s Civil–Military Fusion Strategy and Russia’s massive war efforts facili- tated by a broad range of the Russian economy, BIS must add more entities to the Entity List and apply a license review “policy of denial” that prohibits exports to these entities. Entity List parties that violate export controls should be placed on the BIS Denied Persons List (and thereby lose export privileges) and, if the violations are significant enough, they should also be sanctioned by the Department of Treasury. Data Transfer and Apps Used for Surveillance. Department of Commerce leadership should work across government agencies to address privacy and data concerns arising out of “big tech” from national security and export control per- spectives. In particular, they should draft and implement an executive order (EO) based on the International Emergency Economic Powers Act, which expands export control authority beyond ECRA’s scope (goods, software, technology) to regulate and restrict exports of U.S. persons’ data to countries of concern. The EO should establish a framework for the types of personal data subject to export controls and licensing policy by country, and the BIS should implement the EO through regulations. BIS should additionally designate app providers (such as WeChat and Byte Dance/TikTok) known for undermining U.S. national security through data collection, surveillance, and influence operations, to the Entity List. This listing would prevent app users from program updates, which would quickly make these apps non-operational in the United States. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION Break Up NOAA. The single biggest Department of Commerce agency outside of decennial census years is the National Oceanic and Atmospheric Administration, which houses the National Weather Service, National Marine Fisheries Service, and other components. NOAA garners $6.5 billion of the department’s $12 billion annual operational budget and accounts for more than half of the department’s personnel in non-decadal Census years (2021 figures). NOAA consists of six main offices: l The National Weather Service (NWS);
AI Analysis:
"Both the bill and the Project 2025 proposal focus on tightening export controls and imposing sanctions on China and Russia to prevent the transfer of critical technology that could enhance their military capabilities, aligning on national security objectives and the use of export control tools."
— 672 — Mandate for Leadership: The Conservative Promise regulate exports of emerging and foundational technologies. Although the scope of such technologies is vast, to date BIS has only controlled just over 40 of these technologies. This does not meet the clear statutory intent of Congress that ECRA be leveraged to ensure that the United States maintains a technological advantage in technologies bearing upon national security interests. Currently, BIS self-identifies technologies that merit control under the EAR with minimal input from other federal agencies. This mechanism should be improved. BIS should create an open, transparent rulemaking process by which any industry participant, private entity, or branch of the government may, at any time, submit nominations for emerging/foundational technologies for control. Then, on a quarterly basis, BIS should make public such recommendations (while holding the identity of the submitter confidential) for public input, followed by an explanation about its ultimate decision to control or not control the items, its reasons, the level of controls applied (stringent or permissive), and the relevant Export Control Classification Number (ECCN) under the Commerce Control List. Commerce should also institute a mechanism whereby its decisions can be challenged, including on a confidential basis. Licensing Procedures: Adjudication and Transparency. Currently, if the Departments of Defense, State, Commerce, and Energy disagree on an export license decision, the disagreement may be escalated to the Operating Commit- tee—and subsequently to the Advisory Committee on Export Policy led by BIS’s Assistant Secretary for Export Administration. The Assistant Secretary does not need to lead the dispute resolution, and this process should be revised by giving lead authority to BIS’s Under Secretary, who is better able to account for diverging views. Moreover, BIS’s authority to overrule other agency votes should be changed. Each agency should have one equal vote and, if a licensing dispute remains unre- solved, the final decision should be elevated to the National Security Advisor and the Secretaries of Defense, State, Commerce, and Energy. Additionally, to improve congressional oversight of BIS’s license adjudication process, BIS should provide specific congressional committees with data from the Automated Export System on a quarterly basis. Electronic files should contain U.S. exporter by name; product description (e.g., harmonized system code and ECCN/U. S. Munitions List designation); end user and destination country; and when a license was required, whether the license was granted or denied. BIS cur- rently denies just 1.2 percent of export licenses. These data reporting requirements can help Congress better determine whether BIS is adequately protecting national security through appropriate use of export controls or whether additional direction from Congress is required. Improve End-Use Checks. The integrity of the export control system may be validated only through adequate end-use checks. BIS must deny export licenses to countries that do not permit adequate end-use checks (e.g., China/Russia) by U.S. authorities. BIS should also strengthen the forensic audit capabilities of its — 673 — Department of Commerce Export Enforcement officers through improved and frequent training so they are able to detect export-control violations. EAR Revisions. The U.S. Government needs a new export control moderniza- tion effort to tighten the EAR policies governing licenses to countries of concern, including China and Russia (specifically, revise and/or reverse the 2008 through 2016 policies). When authoritarian governments explain what they plan to do, believe them unless hard evidence demonstrates otherwise. Case in point: China’s and Russia’s stated civil–military fusion policies demand central government command-and-control style systems in which every private entity serves the interests of the state and is forced to provide technology, services, capacity, and data to the central govern- ment and the military. Through this structure, commercial activities are routinely weaponized by authoritarian regimes that repeatedly identify the U.S. as an enemy. Accordingly, U.S. export control policies must be updated to reflect these realities and the associated threats to national security. Key priorities for EAR modernization for countries of concern should be: l Eliminating the “specially designed” licensing loophole; l Redesignating China and Russia to more highly prohibitive export licensing groups (country groups D or E); l Eliminating license exceptions; l Broadening foreign direct product rules; l Reducing the de minimis threshold from 25 percent to 10 percent—or 0 percent for critical technologies; l Tightening the deemed export rules to prevent technology transfer to foreign nationals from countries of concern; l Tightening the definition of “fundamental research” to address exploitation of the open U.S. university system by authoritarian governments through funding, students and researchers, and recruitment; l Eliminating license exceptions for sharing technology with controlled entities/countries through standards-setting “activities” and bodies; and l Improving regulations regarding published information for technology transfers.
Showing 3 of 5 policy matches
Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.