Stop PRC Economic Espionage Act of 2026

The Stop PRC Economic Espionage Act of 2026 amends federal law to expand the definition of foreign instrumentality. This change allows the U.S. government to classify any entity domiciled in a covered nation, such as China, as a foreign instrumentality even if it is not directly owned or controlled by that government. The bill directly affects companies and organizations operating in these countries by subjecting them to stricter scrutiny under existing economic espionage laws. By broadening who can be considered a foreign agent, the legislation aims to close a loophole that previously required proof of direct government control to trigger certain legal restrictions.