Date: 13 Nov 2025
The rivalry between the United States and China is becoming increasingly visible in the realm of quantum computing, adding to their ongoing competition in semiconductors and energy technologies.
According to a recent McKinsey report, the Chinese government has pledged over $15.3 billion for quantum technology nearly five times more than the $3.2 billion allocated by the U.S. government. However, the U.S. retains an advantage in private-sector innovation, where tech firms and financial institutions are rapidly advancing research and applications.
In the United States, the enactment of new legislation has prompted federal agencies, technology giants, and financial institutions to accelerate efforts toward quantum-resistant encryption. The urgency arises from the fact that quantum computers can potentially break existing encryption systems, posing severe risks to government communications and the financial sector.
A recent report by the Bank of America Institute highlights the synergy between artificial intelligence (AI) and quantum computing, predicting that AI could accelerate quantum development while quantum technology provides the computational power needed to advance AI.
Meanwhile, The Wall Street Journal reported that the U.S. government was considering strategic investments in major U.S listed quantum companies such as IonQ, Rigetti Computing, and D-Wave Quantum Inc. Although the White House later denied those discussions.
Industry enthusiasm was further fueled by IonQ’s announcement that it had achieved 99.99% two-qubit gate fidelity, a breakthrough many experts view as a key step toward reaching “quantum advantage” within the next three to five years.
The U.S. government has taken a series of policy actions to consolidate its leadership. The National Quantum Initiative Act (2018) allocated $1.2 billion over five years for national quantum research and development. The CHIPS and Science Act of 2022 designated quantum technology as critical infrastructure and expanded federal funding.
Major technology firms have also advanced their efforts. Google’s Quantum AI team under Alphabet Inc. recently announced that its Willow quantum chip ran algorithms 13,000 times faster than conventional computers in repeated tests. NVIDIA is developing hybrid hardware integrating classical and quantum control, while IBM and AMD have partnered to explore combining quantum and high-performance computing.
On the financial side, JPMorgan announced a $1.5 trillion investment plan for industries critical to national economic security, explicitly including quantum computing.
Quantum computing is quickly moving from research laboratories to the center of geopolitical competition. The technology, expected to achieve major breakthroughs in the near to mid-term holds the potential to accelerate drug discovery and instantly decrypt digital systems. As the U.S.–China race intensifies, quantum technology has emerged as another crucial arena for national security, following semiconductors.
Source: FUTUBULL
