U.S. Risks Falling Behind China in Quantum Technology Without Sustained Investment, Report Warns

July 8th, 2026 12:00 AM
By: Newsworthy Staff

A new report from the Special Competitive Studies Project highlights that while the U.S. leads in quantum computing, China's massive government investment and focus on quantum networking could tip the balance, urging reauthorization of the National Quantum Initiative Act to maintain competitiveness.

U.S. Risks Falling Behind China in Quantum Technology Without Sustained Investment, Report Warns

The United States remains a world leader in many areas of quantum information science, engineering, and technology (QISET), but without additional government investment, the U.S. may fall behind China, according to a new report from experts at the Special Competitive Studies Project (SCSP), a nonprofit and nonpartisan initiative with a goal of making recommendations to strengthen America's long-term competitiveness in artificial intelligence. As noted in the SCSP’s recent Quantum Tech Scorecard, China has committed more than double the government funding to QISET over the past seven years than the United States (approximately $15 billion vs. $6 billion).

China’s primary quantum advantage lies in quantum networking, which leverages quantum states to enable more secure communications and enhance network resilience. Quantum networking has been a long-term strategic priority for the Chinese government and, as a result, China has deployed the networking infrastructure at scale by mobilizing government resources, setting national standards, and executing sustained long-term plans, according to the SCSP’s Quantum Tech Scorecard. By contrast, the U.S. approach is decentralized and market-driven, leaving it exposed to inconsistent funding from annual budget cycles.

However, in quantum computing, the United States still maintains a lead over China, given the support from private companies, universities, and capital markets. American platforms continue to dominate global quantum developer workflows, according to SCSP. For instance, data from December 2025 shows more than 450,000 downloads of IBM’s Qiskit compared to approximately 4,000 for China’s comparable software development kit (SDK). “In addition, between 39 and 73 quantum computers have been deployed by U.S. entities, versus an estimated 15 to 18 in China,” according to SCSP experts.

Looking ahead, the U.S. has made a $2 billion investment that targets a key area of quantum technology competition: the transition from laboratory results to deployed, operational systems. However, the National Quantum Initiative Act—the federal government’s primary framework for coordinating quantum activities—is scheduled to end in 2029, on the heels of several key provisions that expired in 2023, while China’s financial commitments to QISET are rooted in long-term plans. Congress is currently considering legislation to reauthorize the initiative and revise its mandate. The Act would help boost American competitiveness in several ways: modernizing federal quantum research programs; coordinating across federal agencies, including the addition of NASA as a formal quantum research partner; supporting workforce development to meet growing quantum industry demands; and expanding cooperation with allies to maintain U.S. competitiveness.

The new U.S. government investment signals a commitment to retaining global leadership across all areas of quantum technology. However, “the final outcome of this competition will be determined not by which country produces the most impressive research results, but by which can produce operational quantum systems at scale, and sustain the will to do so over a decade-long horizon,” according to SCSP’s experts. Visit scsp.ai to learn more about SCSP’s research, and find out more about how the U.S. and China compare at scorecard.scsp.ai.

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