China has an undeniable lead in quantum networking technology – a state of affairs that should give the US pause, despite its lead in quantum computing.

So says think thank the Information Technology & Innovation Foundation (ITIF), which on Monday published a report titled “How Innovative Is China in Quantum?”

Its answer is “very” – at least when it comes to quantum communication, a field president Xi Jinping prioritized after the 2013 Snowden leaks so that Beijing can keep more of its secrets.

“Since then, China has been moving swiftly, solidifying its lead in the global race for secure communications, particularly in QKD [quantum key distribution], which is perhaps the most advanced subfield of secure communications, leveraging the principles of quantum mechanics to create a virtually unbreakable method of encrypting data,” the report states.

“China has the most ambitious demonstrations of this technology, namely through what is called the Beijing-Shanghai backbone, which is the longest QKD network in the world and stretches over 1,200 miles using fiber-optic cables,” the ITIF report adds. China also operates the “Micius” satellite that, according to the report, “demonstrated the potential to build a global quantum internet – a network that would use quantum technology to transmit information in a way that is far more secure than today’s internet, protecting data from being intercepted or tampered with.”

The report states that other nations can’t match China’s quantum comms capabilities, but the rest of the world is ahead in quantum computing.

“In hardware development, the United States has taken a commanding lead over China,” the report observes, calling out work on superconductors, and the ability to trap atomic ions in a vacuum to represent qubits, as fields in which the US leads the world.

The US and allied nations also excel at developing quantum algorithms – the foundation of software to run in quantum computers.

China has made some important advances on superconducting quantum chips, but trails badly on quantum algorithms.

The two superpowers are at roughly the same level of development in the field of quantum sensing – a tech that allows observation of minute events and is thought to be important in using quantum computers to help with tasks like developing new medicines or materials.

The report suggests that the state of quantum tech development reflects nations’ differing priorities.

China has focussed on tangible products and worked hard to get innovations out of the lab – often after government forges links between academia and industry.

Which is how it’s possible to link Edward Snowden and the Micius satellite.

The US, by contrast, has not made quantum tech a national security or competitiveness priority. It been content to see basic research lead to applied research, and only then to commercial products.

“It’s a step-by-step process that can be slow and disjointed, with each stage often handled by different entities,” the report explains. “In contrast, China’s approach is designed for speed and efficiency. The country’s strategy centralizes efforts and streamlines the transition from research to application.”

Given the potential importance of quantum tech, the think tank recommends “The United States should approach quantum technology as a critical national security and economic imperative, not just a scientific pursuit.”

“While the United States fosters open innovation, China’s protectionist stance on its own advances creates an asymmetric knowledge-sharing environment. This imbalance risks the United States becoming a global quantum research hub while China dominates commercialization.”

The US has in recent years imposed many sanctions that prevent China from importing advanced tech, but the Foundation argues more of the same may be self-defeating.

“Export controls are vital for safeguarding quantum technologies from misuse, [but] policymakers should apply them judiciously to avoid hindering both innovation and international collaboration,” the report argues. “Quantum R&D is a global endeavor, with advancements and supply chains spread across multiple countries. Imposing broad, unilateral export controls could backfire, isolating the United States from key global partnerships and stifling the flow of talent and ideas crucial for progress.”

The think tank suggests “targeted controls that address specific risks without broadly limiting the exchange of knowledge and components.”

“These measures should be developed in close coordination with allies to ensure that they are both effective and aligned with global market dynamics. By striking a balance between security and collaboration, the United States can protect its interests while continuing to lead in quantum innovation.” ®