New policy proposal advocates for AI Manhattan Project to curb China’s influence

The U.S.-China Economic and Security Review Commission has proposed sweeping policy changes aimed at countering China’s economic and technological influence, marking a significant shift toward a more confrontational stance in bilateral relations.

Core recommendations: The commission’s annual report to Congress outlines 32 specific policy proposals designed to fundamentally reshape U.S.-China economic and technological engagement.

• A key proposal calls for revoking China’s permanent normal trade relations status, effectively ending bilateral free trade privileges
• The commission advocates for targeted import restrictions on advanced technologies from China, particularly focusing on autonomous humanoid robotics
• Recommendations include establishing restrictions on U.S. investments in Chinese technology companies and strengthening existing export controls

Technology race concerns: The commission emphasizes the critical importance of maintaining U.S. technological supremacy, particularly in artificial intelligence development.

• Proposals include creating a Manhattan Project-style initiative to accelerate U.S. artificial general intelligence (AGI) development
• The commission frames AI development as a strategic competition, suggesting significant government investment is necessary to prevent China from achieving technological dominance
• Current administration policies, including the “small yard, high fence” approach to technology restrictions, are criticized as insufficient

Strategic alliances: The report emphasizes the importance of building international coalitions to effectively counter China’s influence.

• Recommendations stress the need for coordinated action with U.S. allies despite historical challenges in maintaining these relationships
• The commission advocates for a unified approach to technology controls and trade restrictions among partner nations
• Multilateral cooperation is viewed as essential for implementing effective economic and technological containment strategies

Policy rationale: The commission presents its recommendations as a response to observed patterns in Chinese behavior rather than recent political sentiment.

• Commissioners emphasize that their hawkish stance predates current anti-China sentiment in Washington
• The breakdown in bilateral dialogue is attributed to unilateral actions by China
• The report suggests that China’s global conduct under Xi Jinping’s leadership necessitates a more assertive U.S. response

Strategic implications: While these recommendations represent a significant escalation in U.S.-China policy, questions remain about their potential economic impact and implementation feasibility, particularly given the deep economic interdependence between the two nations and the potential for retaliatory measures from Beijing.