America’s chip advantage is essential to protecting the American Dream

Wang Jianwei C, a professor at Peking University, tests an integrated photonic quantum chip with doctoral students Jia Xinyu L and Zhai Chonghao in a laboratory of Peking University in Beijing, capital of China, Feb.18, 2025.(Xinhua via Getty Images)

It would create a simple test, ensuring sales will not strengthen an adversary’s military, intelligence, surveillance or cyber capabilities and would not erode our technological lead.Importantly, it would also fast-track trusted exports to allies and partners, so that we could export the full American AI stack to friends who gain access to top-tier capability, while ownership and oversight would stay with the United States.

The measures are not just common sense — they are the precondition for every goal the Senate Banking Committee named.

Export controls on chips are vital but not sufficient given the scale of China’s effort to overtake the United States.China’s parallel path to closing the gap is building advanced chips domestically, which is why Sens.Jim Risch, R-Idaho, Pete Ricketts, R-Neb., and Andy Kim, D-N.J., introduced the bipartisan and bicameral “Match Act.”

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The bill bars the sale and servicing of the most essential chipmaking tools to facilities in China, locks restrictions on Huawei, SMIC and other Chinese Communist Party-linked chipmakers intolawand presses our allies to align their own export controls so that American toolmakers aren’t simply undercut by foreign competitors selling Beijing the same equipment.Together, the Overwatch and Match Acts close both doors: China can neither buy our best chips nor buy the tools to make them. 

Start with innovation.In April, the White House accused China of running industrial-scale campaigns to copy American frontier models, using tens of thousands of fraudulent accounts and jailbreaking techniques to siphon proprietary capabilities and release cheaper knockoffs stripped of the safeguards our companies build in.

Beijing is already pilfering our AI advantage because it cannot yet train frontier models at scale without our hardware.To hand Beijing our hardware advantage on top of that would be unilateral disarmament, allowing state-subsidized Chinese firms to match American products at a lower price and box our companies out of global markets just like they have done in solar, steel andelectric vehicles.You do not protect an innovation lead by selling your rival the engine — or the factory that builds it.

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Then there is affordability.The dividend of AI leadership is supposed to land here at home, in new industries, good jobs and the broad prosperity that makes the American Dream attainable.That dividend disappears the moment we hand Beijing the tools to undercut us.

I have spoken with executives across multiple sectors who understand that the AI supply chain andcompute infrastructure — chips, fabs, data centersand the energy to run them — have become the new industrial base.America’s technology advantage is the engine of that prosperity.Losing it is not an abstraction — it is lost jobs, lost leverage and a dimmer American Dream.

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China already has world-class AI talent fielding competitive models.However, it lacks reliable access to the highest-end chips, a gap that keeps Beijing behind. 

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And there is dominance.The country that leads in the most capable models, the chips that train them, and the energy to run them will set global standards and decide whose values are embedded in the defining technology of this century.That is the line between AI that serves a free people and AI that powers a surveillance state.

President Donald Trump’s AI Action Plan names the stakes plainly, calling it imperative that America and its allies win this race, and the current administration has held the line by keeping our most capable chips out of China and tightening enforcement against those who try to route them there anyway.

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There is no doubt China recognizes that compute power is the bottleneck in this race.In March, federal prosecutors in New York charged three people tied to the server maker Super Micro, including a co-founder, with diverting roughly $2.5 billion in Nvidia-powered servers to China through a front company in Southeast Asia, using falsified paperwork and dummy units to fool both internal compliance teams and federal inspectors.The Super Micro prosecution is only the most recent proof that Beijing will not stop trying.

China is running a long game —economic, cyber and intelligence operationsaimed at closing the gap we have spent decades building.The United States must run a longer one.America’s chip advantage is not just a technology story;it is the foundation of the American Dream — the engine of the industries, the jobs and the national power that make self-governance worth defending.By passing the Overwatch and Match Acts, Congress can turn a fragile policy advantage into durable American law.