To amend section 1839 of title 18, United States Code, to provide that an entity domiciled in a foreign adversary country is a foreign instrumentality for purposes of the prohibition on economic espionage under such section.
The Stop PRC Economic Espionage Act of 2026 expands the legal definition of what qualifies as a "foreign instrumentality" under federal economic espionage laws. Currently, an entity is considered a foreign instrumentality only if it is substantially owned, controlled, or dominated by a foreign government; this bill adds a new category that automatically treats any company or organization domiciled in a "covered nation" (as defined in existing Defense Department regulations) as a foreign instrumentality. The change primarily targets entities from countries designated as foreign adversaries, particularly China. By broadening the definition, the bill makes it easier for federal prosecutors to bring economic espionage charges against these foreign-based organizations and individuals working on their behalf who attempt to steal U.S. trade secrets or proprietary information. The legislation contains no new funding requirements or implementation timelines.
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