§1709 Imposition of Sanctions with Respect to Theft of Trade Secrets of United States Persons

Summary

The President must tell certain Congressional committees about foreign people or groups that the President finds, starting from January 5, 2023, have knowingly stolen or benefited from “significant” trade secret theft of U.S. persons and that this theft likely harms national security, foreign policy, the economy, or financial stability. The first report is due within 180 days after January 5, 2023, and then at least once a year. Each report must name foreign persons who did the theft, who supported it, related entities or those acting for them, and any CEOs or board members involved. The report must describe what was stolen, why, and what happened as a result. Reports must be unclassified but can include a classified annex. If the most recent report lists a foreign entity, the President must use at least five types of penalties from a menu that includes blocking property under the International Emergency Economic Powers Act, adding the entity to the Commerce Department’s entity list, stopping Export-Import Bank support, limiting big loans from U.S. banks, opposing international bank loans, special limits for financial institutions (like banning them as primary dealers or from holding government funds), banning U.S. government contracts, blocking certain foreign-exchange or bank transactions, stopping U.S. investments, denying visas or entry to corporate officers, and targeting executives. For listed individuals, the President must block their property and bar them from U.S. visas, admission, or parole and revoke existing visas. The President can waive sanctions if it’s in the national interest but must notify the committees within 15 days. The President may use authorities and penalties under the International Emergency Economic Powers Act to enforce this. The rules do not apply to authorized U.S. intelligence or law enforcement activities, to certain international agreements like the U.N. Headquarters or the Vienna Consular Convention, or to banning imports of goods. The law ends 7 years after January 5, 2023. Key terms: appropriate congressional committees (Senate Banking and Foreign Relations; House Financial Services and Foreign Affairs), entity (an organization), foreign entity/person (not a U.S. person), knowingly (actual knowledge or should have known), person (individual or entity), trade secret (as defined in federal law), United States person (U.S. citizen or lawful permanent resident; an entity organized under U.S. law, including a foreign branch; or any person in the United States).