Jacob Helberg, a commissioner on the U.S.-China Economic and Security Review Commission (USCC), emphasized the historical importance of technological leadership in shaping global power dynamics, noting that nations that capitalize on rapid technological advancements can shift the balance of power.

The USCC's annual report, released on November 19, 2024, advocates for a dedicated project to achieve Artificial General Intelligence (AGI), highlighting the urgency of this initiative.

In a significant move to bolster the U.S. position in the global AI landscape, a congressional commission has proposed a Manhattan Project-style initiative aimed at developing advanced AI systems, particularly in light of competition from China.

This proposal for a major AI initiative highlights the necessity of public-private partnerships for funding, although specific financial details remain undisclosed.

In a related context, Commerce Secretary Gina Raimondo has proposed sharing AI technology with U.S. allies to counter China's advancements, while Defense Department officials stress the importance of safeguards to prevent technology leakage.

The commission also calls for stricter regulations on Chinese involvement in U.S. biotechnology companies, reflecting growing concerns over national security and economic integrity.

These recommendations come amid ongoing geopolitical tensions, as recent U.S. actions, including a Treasury Department rule restricting investments in Chinese AI and semiconductor sectors, underscore the competitive landscape.

While the U.S. currently leads in generative AI technologies, the report warns that China is rapidly innovating and advancing, posing a significant challenge to U.S. dominance.

Despite the U.S. lead, reports indicate that Chinese AI models are lagging behind their U.S. counterparts by approximately six to nine months, raising questions about the urgency of the USCC's recommendations.

Among the report's recommendations is the repeal of the de minimis trade exemption, which allows Chinese goods valued under $800 to enter the U.S. without tariffs or scrutiny, a move aimed at enhancing national security.

Helberg also pointed out that addressing energy infrastructure bottlenecks is crucial for AI development, suggesting that streamlining the permitting process for data centers could facilitate progress.

Despite a bilateral agreement for limited cooperation reached in late 2023, the USCC observes that China has not changed its behavior in response to U.S. policies, indicating the complexity of U.S.-China relations.