U.S. economic security: Winning the race for tomorrow’s technologies

Strategic competition over the world’s next generation of foundational technologies is underway, and U.S. advantages in artificial intelligence (AI), quantum, and biotechnology are increasingly contested. Economic security tools can help the United States win this competition and address several pressing risks, especially overconcentration of critical supply chains in countries of concern and underinvestment in strategically important areas. A new Council on Foreign Relations report provides a comprehensive view of the vulnerabilities that the United States should address and offers practical recommendations for strengthening trust in supply chains and mobilizing the investment needed to prevail in these three crucial sectors of the future.  

Challenges to U.S. technological leadership include the following:  

• China: The Chinese government is spending heavily on AI, quantum, and biotech ($900 billion over past decade); making rapid advances in AI model performance, quantum communications, and biotech innovation; working to indigenize tech and dominate key sectors; and willing to weaponize chokepoints.  
• Investment: Private capital avoids quantum and biotech due to long time horizons, lack of commercial demand, and scaling challenges; early financing for U.S. biotech start-ups dropped 65 percent in the first half of 2025; and China is spending twice as much as the United States on quantum. 
• Supply Chains: The United States is dependent on China for rare earths (70 percent overall, 99 percent for heavy rare earths), data center and chip components (30 percent of printed circuit boards [PCBs], 60 percent of chemicals), biotech inputs and drug development (80 percent of key starting materials [KSMs], 33 percent of global active pharmaceutical ingredient [API] capacity, 80 percent of U.S. biotech companies have at least one Chinese contract), and single suppliers for quantum equipment (laser diodes, mirrors, amplifiers).
• Controls: Effective enforcement and monitoring of U.S. controls on foundational technologies requires tailored and efficient government capacity, technical expertise, and close partnership with the private sector. 

Read more at Council on Foreign Relations