The US-China Economic and Security Review Commission (USCC), a sub-agency of the US Congress, has released its annual report for 2025, urging Congress to take action and pass legislation to ensure that the United States maintains its leading position in dual-use quantum technology and artificial intelligence fields. Currently, the Chinese Communist regime is pouring resources into the development of these two areas.
The USCC was established by the US Congress in October 2000 as an independent entity responsible for reporting to Congress on the impact of US-China trade and economic relations on US national security.
According to the USCC report, “Whoever leads in the quantum field (and artificial intelligence) will be able to control the encryption technology of the digital economy, drive breakthroughs in materials, energy, and medical fields, and gain a sustainable advantage in intelligence and precision targeting.”
The report emphasizes that the United States must view quantum as a critical national core capability, rather than just as an isolated research area, and take corresponding actions.
USCC recommends that by 2030, quantum technology should be prioritized as a national goal (under “Quantum First”), focusing on three key areas – quantum computing, secure quantum communication, and comprehensive promotion of post-quantum cryptography transformation. In the field of quantum computing, the focus should be on three directions to ensure advantages – cryptography, drug development, and material science.
The US should establish a “Quantum Software Engineering Institute” (QSEI) dedicated to developing quantum computing software, ensuring that US quantum hardware can carry advanced software, allowing the US to gain early advantages in science, industry, and defense.
The USCC points out that the Chinese Communist authorities continue to invest “significant resources in cutting-edge technologies such as artificial intelligence and quantum computing,” which have both civilian and military applications, with the aim of enhancing military and intelligence capabilities.
The report warns that the Chinese authorities have mobilized national-level resources to establish integrated research centers and promote domestic technology industry’s quantum technology capabilities through large-scale subsidies to pursue a global strategic position.
Analysts note that the Chinese economy exhibits a “dual-speed” pattern: while the overall economy is under pressure, the strategic technology sector is receiving significant government resources, including quantum technology research.
Furthermore, with the rapid evolution of quantum computing decryption technology, existing encryption standards face risks. China may be accelerating the development of quantum computers capable of breaking global encryption and may deliberately conceal the status of the most advanced projects. USCC believes that this poses a significant strategic risk to the security communication of governments, businesses, and banks worldwide.
Cybersecurity experts warn that even though quantum computers are not yet widespread, hackers may engage in “collect first, break later” tactics, storing confidential information for decryption when the technology matures. This threat model has raised alarms in the global cybersecurity sector.
The US government is aware that failing to upgrade data to post-quantum encryption (PQC) early on could severely impact national security.
In the field of artificial intelligence, the USCC urges action to significantly strengthen US export controls on key technologies (such as semiconductors).
USCC suggests establishing a new cross-agency organization to address Beijing’s “systematic and ongoing evasion” of US export controls, which poses a challenge to US national security.
The report further states that this cross-agency organization should include at least the Bureau of Industry and Security (BIS) of the US Department of Commerce, the Office of Foreign Assets Control of the Department of the Treasury, the Export Control Cooperation Office under the Bureau of International Security and Nonproliferation (ISN) of the State Department, and the Defense Technology Security Administration under the Department of Defense. In addition, this new organization should closely integrate with the intelligence community to obtain real-time information on other countries’ export evasion activities.
Analysts suggest that significant changes should be made in US export controls regarding semiconductor chips.
First, Congress should request the Bureau of Industry and Security to change the permit review for chips on the current export control list from the relatively lenient “presumption of denial” to a more strict “policy-based refusal.” If exporting certain chips could be harmful to US national security, they should be directly prohibited.
Secondly, the Bureau of Industry and Security should establish an advanced chip control system based on “leasing” rather than selling. Advanced chips that are not listed for export prohibition but perform above a certain threshold should only be accessible via cloud-based services. Exporters should screen customers and report any suspicious activities when applying for a permit.
The USCC believes that time is of the essence, with the schedule for 2030 being crucial, especially as the next five to seven years are critical for the development of quantum technology, determining whether the US can maintain a long-term lead over rival countries.
The report highlights that the US still possesses leadership in research and development, innovation, and talent advantages, but to sustain this lead, a focus on national-level coordination and long-term resource allocation is essential.