By Doug Kelly, CEO of American Edge Project
America stands at a pivotal moment. For decades, our leadership in innovation has fueled economic growth, safeguarded national security, and reinforced American values. But today, that leadership is under direct threat. China and other authoritarian powers are rushing to dominate in artificial intelligence (AI), quantum computing, and critical digital infrastructure. The stakes of this competition are high: whoever wins the tech race will shape the future of the global digital order.
A new study by the Lexington Institute, in partnership with the American Edge Project, reveals the extent of this challenge. Two decades ago, America led in 60 of 64 critical technologies. Today, that number has collapsed to just seven, while China has surged from dominating only three to now controlling 57.
Driving this shift is Beijing’s sweeping national strategy to overtake American innovation, which is committing nearly $2.8 trillion to AI, semiconductors, and next-generation computing. To ensure that the globe’s digital future is based on American technological freedom rather than digital authoritarianism, the Trump Administration and Congress need to act boldly and swiftly.
The Authoritarian Tech Offensive
China is aggressively spreading its authoritarian technologies globally, with AI as a key influence tool. State-backed models such as DeepSeek’s R1 and Alibaba’s Qwen 2.5 rewrite history, censor human rights abuses, and suppress sensitive discussions, enabling Beijing to control online discourse. Using a two-pronged AI strategy, China is flooding the market with ‘free’ open-source models that embed censorship while simultaneously investing heavily in proprietary AI for strategic dominance. The United States must counter by leading in both open- and closed-source AI development.
Additionally, the Chinese Communist Party (CCP) has built 30,000 miles of ultra-high voltage (UHV) power lines to power its AI ambitions—while America has none. It is aggressively securing rare earth minerals and semiconductor supply chains, making the world increasingly dependent on Chinese-controlled resources. Through the Belt and Road Initiative (BRI), China is exporting AI-powered surveillance technologies and digital infrastructure to dozens of partner nations, expanding its geopolitical influence and reshaping the global technology ecosystem to serve its interests.
Meanwhile, America’s Russian, Iranian, and North Korean adversaries are leveraging technology to undermine U.S. security. Russian state-backed hackers have targeted critical U.S. institutions, while North Korea has stolen over $3 billion through cyber thefts to fund weapons development. These developments make it clear: technological leadership is not just about maintaining an economic edge—it’s about protecting our national security, digital sovereignty, and global stability.
America’s Innovation Advantage
Despite these challenges, America still holds powerful advantages—if we act decisively. Our private sector innovators remain our greatest strength, with top U.S. tech firms investing $234 billion in R&D in 2023—1.5 times the Pentagon’s R&D budget request for 2025. This dynamism, combined with a robust entrepreneurial ecosystem and a strong network of global allies, provides the United States with an unmatched foundation for technological leadership.
However, securing this leadership requires a coordinated effort between policymakers, industry leaders, and international partners. The United States must ensure that innovation remains unencumbered by excessive regulation, which has already weakened Europe’s AI sector. If America follows a similar path of restrictive policies and bureaucratic slowdowns, we risk handing the competitive advantage to China.
The Path Forward: A Strategy for U.S. Tech Leadership
To secure America’s leadership in AI and emerging technologies, we need a bold bipartisan national strategy that mobilizes government, industry, and allies to accelerate innovation and outpace China’s advances. Key elements:
- Unleash America’s Private Sector Innovation Engine: To counter China’s push to dominate both open-source and proprietary AI, America must lead across both fronts. Policymakers should create conditions that foster AI development while avoiding heavy-handed regulations that stifle innovation and delay progress.
- Secure Critical Supply Chains, Science, Technology, Engineering and Math (STEM) Talent, and Digital Infrastructure: America must invest in domestic semiconductor production, modernize the energy grid to support high-powered computing, expand STEM education to build a skilled workforce, and fortify cybersecurity against increasingly sophisticated threats from authoritarian rivals.
- Lead a Global Coalition to Counter China’s Digital Expansion: The United States must rally democratic nations to set AI standards based on transparency and freedom, ensuring that CCP-controlled censorship models do not become the global default. Targeted export controls should be applied to prevent authoritarian regimes from accessing sensitive hardware without harming U.S. innovation.
- Strengthen National Security Through Technological Superiority: America’s technological dominance is directly tied to national security. The United States must enhance its cyber defenses, increase investment in quantum computing, and ensure that AI-driven military applications maintain a decisive edge over adversaries.
America’s Defining Moment
This is our generation’s moonshot moment. The choices we make today will determine whether the digital world of tomorrow reflects American values of openness, innovation, and free expression—or whether it is shaped by authoritarian regimes that use technology to silence dissent and control populations.
The clock is ticking. China is moving swiftly and strategically. The United States must move faster to ensure that AI, quantum computing, and digital infrastructure are led by democratic nations, not controlled by authoritarian powers.
###