US Signals Strategic Risk from China’s Quantum Edge

A congressional commission has flagged China’s lead in quantum communication as a tangible threat to US security. The report calls for urgent investment in quantum technology amid concerns over encryption vulnerabilities.

What We Know

A congressional commission report issued on November 19, 2025, concluded that China is ahead in quantum communication due to central planning, creating a national security risk for the United States. The report stressed that quantum technologies could potentially break current encryption systems, making existing secure communication vulnerable.

The CEO of quantum networking firm Qunnect criticized past US policy. She said a 2020 advisory from the NSA, which raised doubts about quantum key distribution (QKD), discouraged investors from the broader quantum networking field—even those pursuing alternative approaches. The report suggests revisiting the NSA’s position to catalyze investment.

Despite China’s edge in quantum communication, US firms—including Google, IBM, and startups like PsiQuantum—have achieved significant breakthroughs in quantum computing technologies.

An earlier federal commission, outlined on November 18, urged Congress to embrace a “Quantum First” national strategy by 2030. It recommended substantial funding for quantum hardware, workforce training, infrastructure, and establishing a Quantum Software Engineering Institute. The panel warned that China’s state-backed quantum efforts pose escalating strategic risks.

Additionally, US officials have repeatedly raised alarms about future quantum computing’s potential to undermine current encryption standards and stressed the need for swift cybersecurity modernization across federal systems.

What It Means

The US faces a widening technology gap in quantum communications, with China’s central-planned approach permitting faster deployment. Without decisive federal action, the US risks falling behind in securing its digital infrastructure.

Revision of the NSA’s 2020 guidance could help restore investor confidence, reinvigorate private-sector innovation, and accelerate development of secure quantum networks.

A “Quantum First” strategy with dedicated funding and institutional support would signal a serious US commitment, enabling coordination across government, academia, and industry to catch up in the quantum security race.

US leadership in quantum computing offers an offset to China’s communications advantage—but only if paired with investments that translate breakthroughs into secure, scalable systems.

The Backstory

The US established the National Quantum Initiative in 2018 to accelerate coordination in quantum R&D. However, execution and funding have lagged. Meanwhile, US outbound investment restrictions finalized in late 2024 limited some cross-border quantum collaborations, reflecting growing concern about technology transfer.

Security concerns have mounted as US lawmakers and agencies warn that quantum advances could break conventional encryption—and that adversaries may be recording encrypted data now to decrypt later.

What’s Next

Congress’s response to the “Quantum First” recommendation will be critical. Lawmakers could introduce funding bills, authorize new institutions, or mandate updated guidance from national security agencies. The potential revisitation of the NSA’s 2020 stance could catalyze renewed investor interest.

Federal agencies and private firms may also accelerate development and deployment of quantum-resistant cryptography and secure quantum networks.