HR1468-119

What This Bill Does

The Protect America's Innovation and Economic Security from CCP Act establishes a CCP Initiative inside the Department of Justice National Security Division. The initiative must counter nation-state threats, curb Chinese Communist Party spying on U.S. intellectual property and academic institutions, develop enforcement strategy for nontraditional collectors such as researchers in labs, universities, and the defense industrial base, and implement DOJ's role in the Foreign Investment Risk Review Modernization Act with Treasury. It must identify Foreign Corrupt Practices Act cases involving Chinese companies competing with U.S. businesses, prioritize prosecution of trade-secret theft, hacking, and economic espionage, protect critical infrastructure from foreign direct investment and supply-chain compromises, identify CCP intellectual-property theft from small businesses, and investigate investments by Chinese companies on the Commerce Entity List or Defense Department PRC Military Companies list. DOJ must report findings from those investment investigations to Commerce and Defense, including controlled subsidiaries or entities even if not registered or operating in China. The Attorney General, through the Assistant Attorney General for National Security, must consult DOJ components and coordinate with FBI and other agencies. The CCP Initiative must be separate from other DOJ nation-state threat initiatives, and its resources must be set aside solely for the CCP Initiative.

Who Benefits and How

U.S. small businesses benefit from a DOJ priority on identifying CCP theft of intellectual property. Universities, research labs, and the defense industrial base benefit from enforcement attention to nontraditional collectors transferring technology contrary to U.S. interests. U.S. companies competing with Chinese firms benefit from FCPA enforcement focus on corrupt practices involving Chinese companies. Critical-infrastructure owners benefit from attention to foreign direct investment and supply-chain compromise threats. Commerce and Defense benefit from DOJ reports on investments by Entity List and PRC Military Companies list firms. FBI and DOJ national-security prosecutors benefit from a dedicated statutory initiative and ring-fenced resources.

Who Bears the Burden and How

Chinese companies on the Entity List or PRC Military Companies list face DOJ investment investigations and reporting to Commerce and Defense. Researchers, labs, universities, and defense-industrial-base actors suspected of technology transfer face enforcement scrutiny. Companies involved in Chinese-linked FCPA cases, trade-secret theft, hacking, or economic espionage face prosecution risk. DOJ must dedicate resources solely to the CCP Initiative and keep it separate from other nation-state threat programs. The Attorney General and Assistant Attorney General for National Security must coordinate with FBI and other agencies.

Key Provisions

• Establishes a CCP Initiative in DOJ's National Security Division.
• Directs enforcement against CCP spying on U.S. intellectual property and academic institutions.
• Requires strategy for nontraditional collectors in labs, universities, and the defense industrial base.
• Directs DOJ FIRRMA implementation work with Treasury.
• Prioritizes trade-secret theft, hacking, economic espionage, critical-infrastructure threats, and supply-chain compromises.
• Requires investigation of investments by Entity List and PRC Military Companies list firms.
• Requires reports to Commerce and Defense on covered investment findings.
• Ring-fences CCP Initiative resources from other DOJ nation-state threat initiatives.