U.S. Reps. French Hill (R-AR) and Steve Cohen (D-TN) recently introduced the Protecting American Business from Foreign Adversaries Act (H.R. 6775), which seeks to protect American business and security interests.
The legislation would require foreign business entities to assign and register an agent with the Department of Commerce as a prerequisite to doing business in the United States.
“Allowing foreign entities into our markets is valuable for global trade, but it is not without risk because rogue foreign actors are notorious for stealing trade secrets and intellectual property (IP) of U.S. firms and businesses based here in the United States,”
Hill said. “This has been the case, especially for bad actors from China. Our bill will protect American businesses from IP theft and commercial espionage by closing loopholes and holding rogue foreign business entities conducting business in the United States accountable.”
Cohen said transparency and the rule of law are essential elements of fair and efficient business operations, but acknowledged varied foreign companies in the United States operate outside our legal system, beyond the jurisdiction of U.S. courts and regulatory agencies.
“The Protecting American Business from Foreign Adversaries Act would remedy this legal gray area by requiring foreign business entities to assign and register agents with the Department of Commerce responsible for service of process in legal and regulatory proceedings,” he said. “This commonsense approach makes foreign entities subject to the same legal requirements as their American counterparts and would assure fair competition.”