The U.S. Congress wrestles with escalating threats while China advances its military capabilities through artificial intelligence.
In Brief
As the urgency grows regarding national security, Congress is acutely aware of the rapid advancements in artificial intelligence being harnessed by China for military leverage.
The strategic goals of the Chinese Communist Party revolve around achieving superiority in intelligence, often referred to as 'intelligence supremacy.'
As AI technology evolves, American lawmakers find themselves at a pivotal moment. Observing the swift progress in AI, they are faced with the formidable task of integrating its capabilities responsibly while maintaining national security cautiously.
In the report In the report titled 'Code War: How China’s AI Ambitions Threaten U.S. National Security' by the American Security Project, a crucial concern is highlighted: China's active utilization of AI for military purposes represents a significant threat to U.S. interests. The increasing fears expressed by Congressional members exemplify the urgent need for legislative measures to adapt to the dynamic landscape of AI technology, as ignorance cannot remain an excuse for inaction.
China's pursuit of fifth-generation warfare is heavily supported by its substantial investments in artificial intelligence. The Communist Party exerts complete control over national economic strategies, driving significant state investment in bandwidth areas, leading to a defense budget disproportionately directed towards AI development compared to the United States.
China’s Strategic Pursuit of Global Tech and Intelligence
The Chinese Communist Party is on a mission to dominate the artificial intelligence sector globally by 2030, striving for 'intelligence supremacy' through calculated investments. This initiative is set to allow China to surpass the U.S. technologically, bolster its claims over contested regions, and cement its position as a leader in innovation and cognitive technologies, as intelligence supremacy is deemed vital.
China is heavily investing in acquiring critical new technologies with a strong focus on artificial intelligence. The country has laid out three central strategies: firstly, to decrease dependency on foreign technology while ramping up domestic R&D efforts; secondly, to integrate AI and innovative technologies within military operations, including strategy and weaponry; and lastly, to channel international tech into China's state security framework.
In 2020, the People’s Liberation Army (PLA) allocated between $1.6 billion and $2.7 billion—nearly 1.2% of its annual defense budget—towards AI endeavors. In contrast, the U.S. Department of Defense (DoD) budgeted between $800 million and $1.3 billion for AI, a figure that is only a fraction of what China spends proportionately on defense.
Looking ahead, the DoD has requested an AI initiative budget of around $1.8 billion for FY24. Moreover, it is projected that China's AI sector, which military and intelligence bodies can access without requiring approval from foreign entities, will reach a staggering $14.75 billion.
The Influence of U.S. Tech Giants in China’s AI Sector
A recent report suggests that foreign companies, either knowingly or unknowingly, contribute to China's civil-military fusion efforts via their research, investments, and sales activities.
Even private companies that attempt to adjust their business models for Western stakeholders often struggle to protect themselves from state involvement. American tech firms find themselves unwittingly facilitating the transfer of advanced, dual-use information and communication technologies (ICT) to China's security systems.
Microsoft stands out as a key player that provides essential technology to the U.S. government while simultaneously facilitating AI advancements in China. Their Azure cloud services and collaboration with China Mobile enables over 900 million residents to access AI technologies comparable to those available in the U.S. With a workforce of over 10,000 in China—including 3,000 dedicated to AI—Microsoft acts as a strategic channel for transferring American AI knowledge and skills into China; this number is expected to increase in some regions by 2025.
On the other side, Amazon Web Services (AWS), a major competitor in the cloud computing industry, maintains significant contracts with various Chinese governmental bodies, raising alarm over the security ramifications. For example, Ningxia Western Cloud Data Technology Co., a partially state-owned entity, is linked to U.S.-sanctioned Beijing Highlander, providing Amazon's services, such as advanced Machine Learning technologies, to Zhongke Guangqi Space Information Technology Co. (CASSpace), which supports Chinese governmental and defense operations.
Meanwhile, Meta strives to tap into the potentially profitable Chinese market, even amidst worries about data regulations and intellectual property violations. The tech titan has persistently aimed to establish itself in China despite its services being outlawed since 2009. Efforts have included considerable investments in research, startup funding, and alliances with Chinese Communist Party (CCP) affiliates.
Despite having no direct operations in China, Meta's businesses and supply chains are significantly intertwined with the region. Importantly, the company's advertising revenue increasingly leans on Chinese investors who sell their products on the international stage.
Mark Zuckerberg, the CEO and founder of Meta, has openly criticized the CCP's data management practices and theft of intellectual property. However, Meta's relentless attempts to penetrate into China’s vast market highlight how the desire for access can outweigh concerns regarding security risks for American companies.
Closing Legislative Loopholes for AI Security
Existing regulatory loopholes permit American AI developers to inadvertently aid China's military capabilities by transferring technology funded by the U.S. government. Some of these developers may protect sensitive information but remain open to misuse. To prevent this technology leak, Congress should deeply investigate the integration of American cloud storage and AI contractors within China's AI ecosystem.
When entering into contracts, the U.S. government must consider the extensive intelligence network of China. To ensure that military-grade and dual-use AI does not end up in the hands of foreign adversaries, American defense contractors should be barred from engaging within China's critical tech sectors. Given the CCP's ability to access foreign data under the guise of 'national security,' contracts from the Department of Defense should explicitly forbid engagements with CCP-affiliated partners in AI endeavors, regardless of intent or source.
While multinational corporations and arms manufacturers can contribute to preventing the misuse of AI, policymakers should lean on insights from unbiased experts. These businesses often emphasize the possibility of lucrative opportunities in large foreign markets over their allegiance to U.S. national security, especially given the tightening market conditions in China.
The authors of the report emphasize that cooperation among the Five-Eyes alliance (Australia, Canada, New Zealand, the United Kingdom, and the United States) and NATO partners is crucial for ensuring responsible global AI development and deterring China from bypassing sanctions through other international alliances. A unified international stance on AI ethics, particularly in military contexts, combined with stringent standards for safety, testing, and evaluation, can avert unintended escalations and ensure responsible implementation of new defense technologies.", ', it is important to mention that the information presented on this page should not be construed as legal, tax, investment, financial, or any other kind of advice. It is advisable to only invest what you can afford to lose and to seek independent financial counsel if uncertain. For further details, we recommend reviewing the terms and conditions, alongside the help and support resources provided by the issuer or advertiser. MetaversePost remains dedicated to delivering accurate and impartial reporting, although market conditions can change without prior notice.', "Agne is a dedicated journalist keeping a close eye on emerging trends and breakthroughs within the realms of the metaverse, AI, and Web3 for Metaverse Post. Her enthusiasm for storytelling has driven her to conduct numerous interviews with key figures in these industries, always in pursuit of engaging narratives. Agne earned a Bachelor's degree in literature and has a broad background covering topics like travel, art, and culture. Additionally, she has volunteered as an editor for an animal rights organization, focusing on raising awareness about animal welfare. You can contact her at
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