The United States risks losing its competitive edge in artificial intelligence, quantum computing, and biotechnology unless it addresses growing supply chain vulnerabilities and investment gaps, according to a new report from the Council on Foreign Relations.
The report, U.S. Economic Security – Winning the Race for Tomorrow’s Technologies, finds that U.S. advantages in these foundational technologies are increasingly challenged, particularly by China, which has invested an estimated $900 billion over the past decade and continues to make rapid advances across all three sectors.
The report highlights declining private investment in U.S. quantum and biotech industries, noting that early-stage biotech funding fell 65 percent in the first half of 2025 and that China now spends roughly twice as much as the United States on quantum research. The report also warns of heavy U.S. dependence on China for critical inputs, including rare earth elements, semiconductor components, and pharmaceutical materials.
To reduce these risks, the report recommends onshoring key technology supply chains, accelerating development of a utility-scale quantum computer through Department of Defense procurement, expanding biomanufacturing capacity, securing critical minerals, supporting the skilled workforce needed for advanced manufacturing, and improving government coordination through an Economic Security Center at the Department of Commerce.
(AI was used in part to facilitate this article.)