A more thorough explanation:

The Industrial Espionage Act, also known as the Economic Espionage Act, is a federal law that was passed in 1996. This law makes it illegal to steal trade secrets and provides criminal penalties for those who engage in industrial espionage on behalf of a foreign entity.

Trade secrets are confidential information that gives a company a competitive advantage. Examples of trade secrets include formulas, designs, and processes that are not known to the public. If someone steals this information and uses it for their own benefit or shares it with others, they can be prosecuted under the Industrial Espionage Act.

For example, if a company in China hires someone to work for a U.S. company and steal their trade secrets, that person and the Chinese company can be prosecuted under this law. Similarly, if someone knowingly receives or purchases stolen trade secret information, they can also be prosecuted.

The Industrial Espionage Act is important because it helps protect American companies from unfair competition and theft of their intellectual property. By making it illegal to engage in industrial espionage, this law helps ensure that companies can compete fairly and that their trade secrets remain confidential.