H.R. 9789: Stop PRC Economic Espionage Act of 2026

This bill would change the federal economic espionage law to treat companies or other entities that are domiciled in a “covered nation” as a “foreign instrumentality” for purposes of the law. In practical terms, that means an entity based in a country identified in another part of federal law as a covered nation would be treated the same way as an entity that is owned, controlled, sponsored, commanded, managed, or dominated by a foreign government.

The main effect would be to broaden the category of entities covered by the economic espionage statute. Under current law, the definition focuses on entities tied to a foreign government. This bill would add a separate basis for coverage based on where the entity is domiciled, if that country is a covered nation. The bill’s title refers to the People’s Republic of China, but the text itself uses the broader legal term “covered nation.”

If enacted, this could make it easier for prosecutors to apply the economic espionage law in cases involving entities based in such countries, even if there is not a showing that the entity is directly controlled by a foreign government. The bill does not itself create a new crime, penalties, or enforcement agency; it changes the definition used in an existing federal statute.

Relevant Companies

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