,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #eajc  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ad1 #bjad ,mr4 
,rohraba*] 7= himself & ,mr4 ,ryan (    
,ohio7 introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,=eign        
,affairs1 & 9 addition to ! ,committees 
on ! ,judici>y & ,f9ancial ,s]vices1 = a
 p]iod to be subsequ5tly det]m9$ by !   
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to      
impose sanctions on ,*9ese /ate-own$    
ent]prises & any p]son :o is a memb] ( !
 bo>d ( directors1 an executive (fic]1  
or a s5ior (ficial ( a ,*9ese /ate-own$ 
ent]prise = b5efitt+ f cyb] & economic  
espionage aga9/ ! ,unit$ ,/ates4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,*9ese ,communi/ ,economic ,espionage   
,sanctions ,act4  #b4 ,f9d+s ,congress  
f9ds ! foll[+3  7#a7 ,! ,*9ese ,communi/
 ,p>ty 7,,ccp7 has made x its policy to 
engage 9 economic w>f>e aga9/ ! ,unit$  
,/ates4  7#b7 ,! ,,ccp uses ! res\rces (

 ! ,p's ,lib]ation ,army 7,,pla7 & !    
,*9ese ,/ate to dra9 ! ,unit$ ,/ates (  
economic might1 includ+ by means (      
economic espionage & cyb] espionage1    
unfair trade practices1 unfair labor    
practices1 & curr5cy manipulation4  7#c7
 ,*9ese /ate-own$ ent]prises 7,,soe7 & !
 ,,pla are ! ma9 b5efici>y ( ! ,,ccp's  
campaign ( !ft aga9/ ! ,unit$ ,/ates4   
7#d7 ,al?\gh _m ,s,o,es are li/$ on /ock
 ex*anges or (ficially privatiz$1 !     
,*9ese gov]nm5t reta9s at lea/ "o-half (
 equity 9 ^? companies4  7#e7 ,s,o,es   
come "u ! control ( ! m9i/]ial-level    
,/ate-own$ ,assets ,sup]vision &        
,adm9i/ration ,commission4  7#f7 ,memb]s
 ( ! bo>ds ( directors & s5ior managem5t
 ( ,s,o,es are appo9t$ by ! ,/ate-own$  
,assets ,sup]vision & ,adm9i/ration     
,commission 9 consultation ) ! ,communi/
 ,p>ty's ,dep>tm5t ( ,organization4     
7#g7 ,m ?an two-?irds ( bo>d memb]s &   
?ree-qu>t]s ( s5ior executives ( ,s,o,es
 are ei!r ,communi/ ,p>ty memb]s or     
(ficials4  7#h7 ,corruption )9 ! ,,ccp  

is widespread & endemic4  7#i7 ,,ccp    
(ficials use _! positions ( control &   
influ5ce )9 & ov] ,,soe's to enri*      
!mselves & _! families4  7#aj7 ,! va/   
majority ( ! ,*9ese p d n b5efit f !    
corruption ( ! ,,ccp4  7#aa7 ,on ,may   
#ai1 #bjad1 ! ,unit$ ,/ates ,dep>tm5t ( 
,ju/ice ann\nc$ *>ges aga9/ five memb]s 
( ! ,,pla1 accus+ !m ( /eal+ trade      
secrets f ,unit$ ,/ates companies & m>k+
 ! fir/ "t ! ,unit$ ,/ates has *>g$     
=eign gov]nm5t employees ) economic     
espionage4  7#ab7 ,! indictm5t *>g$ t   
memb]s ( ! ,,pla work$ to /eal in=mation
 f ,unit$ ,/ates companies t w\ld be    
useful to _! competitors 9 ,*9a1 includ+
 /ate-own$ ent]prises4  7#ac7 ,*9ese    
,s,o,es are report$ to h b5efitt$       
directly f _! actions1 includ+ ! ,/ate  
,nucle> ,p[] ,te*nology ,corporation1 ! 
,bao/eel ,gr\p1 & ! ,alum9um            
,corporation ( ,*9a 7,*9alco74  7#ad7 ,!
 *airman ( ! bo>d & ! majority ( ! bo>ds
 = ! ,/ate ,nucle> ,p[] ,te*nology      
,corporation1 ! ,bao/eel ,gr\p1 & !     

,alum9um ,corporation ( ,*9a 7,*9alco7  
are memb]s ( ! ,,ccp4  7#ae7 ,on ,may   
#ba1 #bjad1 ,assi/ant ,attorney ,g5]al  
,john ,c>l9 said t crim9al *>ges c      
ju/ify economic sanctions4  7#af7 ,!    
indictm5t nam$ memb]s ( ,unit #facih :i*
 is publicly id5tifi$ z a ,%anghai-bas$ 
cyb] unit ( ! ,,pla also kn[n z ,,apt#a4
  7#ag7 ,unit #facih is "p ( ! #bnd     
,bureau ( ! ,,pla1 #crd ,dep>tm5t ( !   
,g5]al ,/aff4  7#ah7 ,unit #facih 0 fir/
 publically id5tifi$ 9 #bjac z ,,apt#a  
by ,m&iant1 a ,unit$ ,/ates cyb]        
security firm & lead] 9 cyb] incid5t    
response indu/ry4  7#ai7 ,m&iant expos$ 
a timel9e ( ,unit #facih's economic     
espionage conduct$ s9ce #bjjf aga9/ #ada
 victims across multiple indu/ries4     
7#bj7 ,m&iant's conclusions h be5       
support$ by ,crowd,strike1 ano!r cyb]   
security company1 :i* publicly reveal$ !
 exi/5ce ( ,unit #fadhf1 a relat$ ,,pla 
unit d$icat$ to cyb] espionage4  7#ba7  
,george ,kurts1 ! co-f\nd] (            
,crowd,strike1 /at$ t ,if y look at all 

! gr\ps t we track 9 ,*9a1 ! indictm5ts 
are j ! v tip ( ! iceb]g44  7#bb7 ,units
 #facih & #fadhf are only two ( at lea/ 
#bj cyb] ?reat gr\ps 9 ,communi/ ,*9a & 
are consid]$ by multiple exp]ts to h    
/ol5 va/ am\nts ( valuable in=mation f !
 ,unit$ ,/ates4  7#bc7 ,! #bjaa annual  
report to ,congress f ! ,(fice ( !      
,secret>y ( ,def5se1 titl$ ,milit>y &   
,security ,developm5ts ,involv+ ! ,p's  
,republic ( ,*9a1 /ates1 ,! ,,prc also  
utilizes a l>ge1 well-organiz$ network (
 ent]prises1 def5se factories1 affiliat$
 rese>* in/itutes1 & comput] network    
op]ations to facilitate ! collection (  
s5sitive in=mation & export-controll$   
te*nology1 z well z basic rese>* &      
sci5ce t supports ,u4,s4 def5se sy/em   
mod]nization44  7#bd7 ,a #bjaa report by
 ! ,(fice ( ! ,national ,c\nt]9tellig5ce
 ,executive f\nd t ,*9ese actors are !  
_w's mo/ active & p]si/5t p]petrators ( 
economic espionage44  7#be7 ,! #bjab    
annual report to ,congress f ! ,(fice ( 
! ,secret>y ( ,def5se1 titl$ ,milit>y & 

,security ,developm5ts ,involv+ ! ,p's  
,republic ( ,*9a1 f\nd t ,*9ese attempts
 to collect ,u4,s4 te*nological &       
economic in=mation w cont9ue at a high  
level & w repres5t a gr[+ & p]si/5t     
?reat to ,u4,s4 economic security44     
7#bf7 ,james ,clapp]1 ! ,director (     
,national ,intellig5ce1 /at$1 ,among    
significant =eign ?reats 4 4 4 ,*9a     
rema9s ! mo/ capable & p]si/5t          
intellig5ce ?reats & are aggressive     
practition]s ( economic espionage aga9/ 
! ,unit$ ,/ates44  7#bg7 ,retir$ ,g5]al 
,mi*ael ,hayd51 =m] ,director ( !       
,c5tral ,intellig5ce ,ag5cy & ,director 
( ! ,national ,security ,ag5cy1 /at$1 ,!
 int5sity ( ,*9ese espionage is c]ta9ly 
great] ?an t :at we saw betwe5 ! ,u4,s4 
& ! ,soviets dur+ ! ,cold ,w>4 ,!       
problem is ,*9a's view is t indu/rial   
espionage by ! /ate aga9/ relatively    
vuln]able private ent]prise is a        
commonly accept$ /ate practice14  7#bh7 
,! annual report by ! congressional     
,unit$ ,/ates-,*9a ,economic & ,security

 ,review ,commission /at$ 9 #bjac1 /rong
 evid5ce em]g$ t ! ,*9ese gov]nm5t is   
direct+ & execut+ a l>ge-scale cyb]     
espionage campaign aga9/ ! ,unit$       
,/ates4  7#bi7 ,retir$ ,lieut5ant ,g5]al
 ,ronald ,burgess1 ,jr41 =m] ,director (
 ! ,def5se ,intellig5ce ,ag5cy1 /at$1   
,*9a has us$ its intellig5ce s]vices to 
ga!r in=mation via a significant network
 ( ag5ts & contacts us+ a v>iety (      
me?ods ''' ,9 rec5t ye>s1 multiple cases
 ( economic espionage & !ft ( dual-use &
 milit>y te*nology h uncov]$ p]vasive   
,*9ese collection ef=ts14  7#cj7        
,congressman ,mike ,rog]s1 ,*airman ( ! 
,p]man5t ,select ,committee on          
,intellig5ce ( ! ,h\se (                
,repres5tatives1 /at$1 ,*9a's economic  
espionage has rea*$ an intol]able level 
& ,i believe t ! ,unit$ ,/ates & our    
allies 9 ,europe & ,asia h an obligation
 to confront ,beij+ & dem& t !y put a   
/op to ?is piracy4 ,beij+ is wag+ a     
massive trade w> on u all1 & we %\ld b& 
toge!r to pressure !m to /op4 ,comb9$1 !

 ,unit$ ,/ates & our allies 9 ,europe & 
,asia h significant diplomatic &        
economic lev]age ov] ,*9a1 & we %\ld use
 ?is to our advantage to put an end to  
?is sc\rge14  7#ca7 ,! ?reat ( ,*9ese   
espionage is s l>ge t ,s5ator ,%eldon   
,:iteh\se1 ,d-,rhode ,isl&1 :o *air$ !  
,cyb] ,task ,=ce ( ! ,select ,committee 
on ,intellig5ce1 proclaim$ x to be "p ( 
! bigge/ transf] ( weal? ?r\gh !ft &    
piracy 9 ! hi/ory ( mank9d4  7#cb7      
,massive cyb] & economic espionage      
organiz$1 direct$1 & c>ri$ out by !     
,,ccp & ! ,,pla has contribut$ to creat+
 a #cah1jjj1jjj1jjj ,unit$ ,/ates trade 
deficit ) ,communi/ ,*9a 9 #bjac1 :i*   
equals #a4hi p]c5t ( total ,unit$ ,/ates
 gross dome/ic product 7,,gdp74  #c4    
,s5se ( ,congress ,x is ! s5se (        
,congress t ! ,*9ese ,communi/ ,p>ty & !
 ,gov]nm5t ( ! ,p's ,republic ( ,*9a    
%\ld be condemn$ = sponsor+1 plann+1    
ord]+1 conduct+1 & b5efitt+ f cyb] &    
economic espionage aga9/ ! ,unit$       
,/ates4  #d4 ,f9ancial ,measures  7a7   

,freez+ ( ,assets ,! ,presid5t %all     
ex]cise all p[]s grant$ by !            
,int]national ,em]g5cy ,economic ,p[]s  
,act 7#ej ,u4,s4,c4 #agja et seq47      
7except t ! requirem5ts ( section #bjb (
 su* ,act 7#ej ,u4,s4,c4 #agja7 %all n  
apply7 to ! ext5t necess>y to block &   
prohibit all transactions 9 all prop]ty 
& int]e/s 9 prop]ty ( a cov]$ ,*9ese    
/ate-own$ ent]prise or a p]son :o is a  
memb] ( ! bo>d ( directors1 an executive
 (fic]1 or a s5ior (ficial ( a cov]$    
,*9ese /ate-own$ ent]prise if su*       
prop]ty & int]e/s 9 prop]ty are 9 !     
,unit$ ,/ates1 come )9 ! ,unit$ ,/ates1 
or are or come )9 ! possession or       
control ( a ,unit$ ,/ates p]son4  7b7   
,en=cem5t  7#a7 ,p5alties ,a cov]$      
,*9ese /ate-own$ ent]prise or a p]son :o
 is a memb] ( ! bo>d ( directors1 an    
executive (fic]1 or a s5ior (ficial ( a 
cov]$ ,*9ese /ate-own$ ent]prise %all be
 subject to ! p5alties set =? 9         
subsections 7b7 & 7c7 ( section #bjf ( !
 ,int]national ,em]g5cy ,economic ,p[]s 

,act 7#ej ,u4,s4,c4 #agje7 to ! same    
ext5t z a p]son t commits an unlawful   
act describ$ 9 subsection 7a7 ( su*     
section4  7#b7 ,requirem5ts = f9ancial  
in/itutions ,n lat] ?an #abj days aft] !
 date ( ! enactm5t ( ?is ,act1 !        
,secret>y ( ! ,treasury %all prescribe  
or am5d regulations z ne$$ to require   
ea* f9ancial in/itution t is a ,unit$   
,/ates p]son & has )9 its possession or 
control assets t are prop]ty or int]e/s 
9 prop]ty ( a cov]$ ,*9ese /ate-own$    
ent]prise or a p]son :o is a memb] ( !  
bo>d ( directors1 an executive (fic]1 or
 a s5ior (ficial ( a cov]$ ,*9ese       
/ate-own$ ent]prise if su* prop]ty &    
int]e/s 9 prop]ty are 9 ! ,unit$ ,/ates 
to c]tify to ! ,secret>y t1 to ! be/ ( !
 k ( ! f9ancial in/itution1 ! f9ancial  
in/itution has froz5 all assets )9 !    
possession or control ( ! f9ancial      
in/itution t are requir$ to be froz5    
pursuant to subsection 7a74  7c7        
,regulatory ,au?ority ,! ,secret>y ( !  
,treasury %all issue su* regulations1   

lic5ses1 & ord]s z are necess>y to c>ry 
out ?is section4  7d7 ,def9itions ,9 ?is
 section3  7#a7 ,cov]$ ,*9ese /ate-own$ 
ent]prise ,! t]m cov]$ ,*9ese /ate-own$ 
ent]prise means an ent]prise t--  7,a7  
is organiz$ "u ! laws ( ! ,p's ,republic
 ( ,*9a1 includ+ a =eign bran* ( su*    
ent]prise2 &  7,b7 is own$ or controll$ 
by ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a
 or ! ,*9ese ,communi/ ,p>ty4  7#b7     
,unit$ ,/ates p]son ,! t]m ,unit$ ,/ates
 p]son means--  7,a7 a ,unit$ ,/ates    
citiz5 or an ali5 lawfully admitt$ =    
p]man5t resid5ce to ! ,unit$ ,/ates2 or 
7,b7 an entity organiz$ "u ! laws ( !   
,unit$ ,/ates or any jurisdiction )9 !  
,unit$ ,/ates1 includ+ a =eign bran* (  
su* an entity4  #e4 ,inadmissibility (  
c]ta9 ali5s  7a7 ,ineligibility = visas 
,an ali5 is ineligible to receive a visa
 to ent] ! ,unit$ ,/ates & ineligible to
 be admitt$ to ! ,unit$ ,/ates if ! ali5
 is a p]son :o is a memb] ( ! bo>d (    
directors1 an executive (fic]1 or a     
s5ior (ficial ( a cov]$ ,*9ese /ate-own$

 ent]prise4  7b7 ,curr5t visas revok$ ,!
 ,secret>y ( ,/ate %all revoke1 9       
accordance ) section #bba7;i7 ( !       
,immigration & ,nationality ,act 7#h    
,u4,s4,c4 #abja7;i771 ! visa or o!r     
docum5tation ( any ali5 :o w\ld be      
ineligible to receive su* a visa or     
docum5tation "u subsection 7a7 ( ?is    
section4  7c7 ,regulatory au?ority ,!   
,secret>y ( ,/ate %all prescribe su*    
regulations z are necess>y to c>ry out  
?is section4  #f4 ,report to ,congress  
7a7 ,9 g5]al ,n lat] ?an #ahj days aft] 
! date ( ! enactm5t ( ?is ,act1 &       
annually !reaft]1 ! ,secret>y ( ,/ate & 
! ,secret>y ( ! ,treasury %all submit to
 ! appropriate congressional committees 
a report on--  7#a7 ! actions tak5 to   
c>ry out ?is ,act1 includ+ ! numb] (    
cov]$ ,*9ese /ate-own$ ent]prises &     
p]sons :o are memb]s ( ! bo>d (         
directors1 executive (fic]s1 or s5ior   
(ficials ( cov]$ ,*9ese /ate-own$       
ent]prises sanction$ dur+ ! ye> prec$+ !
 report2 &  7#b7 ef=ts by ! executive   

bran* to enc\rage ! gov]nm5ts ( o!r     
c\ntries to impose sanctions t are      
simil> to ! sanctions impos$ "u ?is     
,act4  7b7 ,=m ,! report requir$ by     
subsection 7a7 %all be submitt$ 9       
unclassifi$ =m1 b may conta9 a classifi$
 annex4  7c7 ,def9ition ,9 ?is section1 
! t]m appropriate congressional         
committees means--  7#a7 ! ,committee on
 ,=eign ,affairs1 ! ,p]man5t ,select    
,committee on ,intellig5ce1 & !         
,committee on ,ways & ,means ( ! ,h\se (
 ,repres5tatives2 &  7#b7 ! ,committee  
on ,=eign ,relations1 ! ,select         
,committee on ,intellig5ce1 ! ,committee
 on ,f9ance1 & ! ,committee on ,bank+1  
,h\s+1 & ,urban ,affairs ( ! ,s5ate4