How Innovative Is China in Quantum?

China’s lead in quantum communications is undeniable, but its overall quantum prowess is limited; without computing breakthroughs, the United States still holds the upper hand - ITIF report

China is actively pursuing advancements in quantum information science (QIS), which harnesses the principles of quantum mechanics to process and transmit information in fundamentally new ways, and some of these advancements outstrip the United States in scale and scope, making U.S. leadership in quantum far from assured. Quantum technologies not only are important for national security, but they also have the potential to exert a transformative influence on the economy and society. Being at the forefront of this technological frontier is strategically crucial for the United States in terms of both its economic and societal well-being.

China leads in quantum communications, lags behind in computing (where the United States excels), and matches the United States in sensing, excelling in market-ready tech, while the United States dominates high-impact areas.

This is what the Information Technology & Innovation Foundation (ITIF) claims in its latest report titled How Innovative Is China in Quantum?

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Overall, the ITIF continues, China is dominating in quantum communications, lagging behind in quantum computing, and closing in on the United States in quantum sensing. State-funded laboratories, elite universities such as the University of Science and Technology of China (USTC) and a select group of private companies are advancing technologies that closely align with national priorities. In the field of quantum communications, China has secured global leadership, demonstrated particularly with the development of the world's longest quantum key distribution (QKD) network: the 1,200-mile Beijing-Shanghai backbone. Together with the revolutionary Micius satellite, which extends quantum communication over even greater distances, this network has placed China at the forefront of secure, long-distance quantum communication. However, in the field of quantum computing, China lags far behind, especially in the hardware and practical implementation of quantum systems. Regarding quantum sensing, China is a leader in some aspects and the United States in others. This contrast-China's leadership in quantum sensing, which is more market-ready, and its lag in quantum computing, which is less mature-highlights its strength in rapidly refining and applying existing research, but also its limitations in fundamental innovation.

China claims over $15 billion in public quantum funding, far outpacing the United States. While U.S. private funding is higher, China offsets its private sector shortfall with massive public investment.

China is fully aware of its strengths and plays to them. At the core of its quantum innovation strategy is a relentless focus on translating cutting-edge research into practical, commercial applications. Government initiatives have created specialized hubs such as Hefei’s Quantum Avenue, where academic research is seamlessly converted into market-ready technologies.

China’s state control over quantum research and development (R&D) is growing, with firms such as Alibaba and Baidu exiting quantum research, aligning innovation with national goals and reducing private sector involvement.

China’s approach is notably insular, with limited international collaboration in research publications. While this strategy has yielded rapid gains, especially in quantum communications, it also presents long-term risks. The immense cost and complexity of quantum technology development, as well as its globally dispersed supply chain, requires international cooperation—something that China’s inward-looking approach may struggle to sustain. China benefits significantly from the open innovation environments of other nations, yet it is notably protective of its own advances. While it leverages global research, China restricts the sharing of its developments, reflecting a strategic approach to maintaining a competitive edge.

China’s quantum strategy is insular, relying on domestic resources with limited global collaboration. This approach yields rapid gains but poses long-term risks in sustaining complex technology advancements.

According to the ITIF, the United States should take immediate and decisive action to ensure its leadership in quantum technology. This includes significantly increasing funding for R&D, particularly through the reauthorization of the National Quantum Initiative (NQI).

China strategically benefits from open innovation environments abroad, selectively engaging with them while protecting its own quantum advances, creating an asymmetric knowledge-sharing environment.

Congress should support industry-led innovations that address critical public sector challenges, accelerating the commercialization of quantum technologies. Additionally, the United States should avoid imposing rigid quantum standards prematurely, allowing the industry to innovate and evolve naturally. Careful, targeted export controls are necessary to protect U.S. advancements while maintaining the flow of ideas and talent essential for progress. By balancing strategic investment, innovation, and security, the United States can ensure it remains at the forefront of global quantum technology.