US Can’t Cut China Off Completely, But Must Defend AI and American Innovation from Nonstop Theft: Sen. Rounds
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This article explores Sen. Rounds’ perspective, the current state of U.S.-China tech competition, and the policy and security implications of defending AI in a globally connected world.
The Growing AI Cold War
AI is no longer a niche technology reserved for research labs—it is a transformative force shaping industries, economies, and warfare. Nations around the world are racing to achieve superiority in this field, and the U.S. and China are the front-runners.
The stakes are enormous. AI powers everything from autonomous vehicles and facial recognition systems to advanced weapons, cyber operations, and real-time surveillance. It enables economic advantage, military readiness, and societal control.
Sen. Rounds warns that the United States must be prepared to counter Chinese efforts to acquire and exploit American-developed AI tools, both through cyber espionage and strategic economic partnerships. According to him, this theft isn’t hypothetical—it's happening now, on a daily basis.
The Reality of Tech Interdependence
Despite the mounting geopolitical tension, a full economic or technological divorce from China is not realistic—a view Rounds acknowledges candidly.
“We’re not going to completely cut China off. We are interconnected—our economies, our supply chains, our research institutions. But that doesn’t mean we have to be naive,” Rounds said in a recent interview.
Instead, he argues for targeted, smart decoupling—particularly when it comes to technologies that have both commercial and military applications. In other words, the U.S. must selectively wall off its most sensitive sectors—especially AI, quantum computing, semiconductors, and biotechnology—from Chinese access.
Nonstop Theft: The Scope of the Problem
U.S. intelligence officials and cybersecurity experts have long warned about China's aggressive campaign to steal American intellectual property (IP), including AI models, defense algorithms, and data sets. The FBI has stated that it opens a new China-related counterintelligence case every 12 hours, with many of them involving technology theft.
According to Sen. Rounds:
“This is not just about stealing patents or research papers. The Chinese government is targeting our companies, our defense contractors, our universities, and even our startups. They’re taking our ideas and using them to outcompete us—and in some cases, to build weapons that threaten our own security.”
Some of the most notable instances of Chinese tech espionage in the last decade include:
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Theft of source code from U.S. tech firms including Google and Microsoft.
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Infiltration of research labs through academic partnerships.
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Data breaches, such as the 2017 Equifax hack that compromised information on 147 million Americans.
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Reverse engineering of American hardware, such as drones and semiconductors.
Many of these operations are allegedly carried out or supported by China’s People’s Liberation Army (PLA) and Ministry of State Security (MSS).
The Dual-Use Nature of AI
What makes AI particularly vulnerable is its dual-use nature—the same algorithm that powers a self-driving car can also be used to guide a drone or missile. Facial recognition software can help a retailer understand customer behavior or help a regime surveil its citizens.
This makes AI a national security concern as much as a commercial one.
Rounds emphasizes the need for better export controls and stricter enforcement to prevent AI systems from being sold, copied, or reverse-engineered by hostile foreign powers.
Legislative Solutions: What Congress Is Doing
In response to these concerns, the U.S. Congress has introduced several bipartisan initiatives aimed at protecting American innovation from foreign threats.
1. The CHIPS and Science Act
Passed in 2022, this act allocates billions of dollars for semiconductor manufacturing and research in the U.S., with safeguards to prevent funds from benefiting Chinese companies.
2. National Security Commission on Artificial Intelligence (NSCAI) Recommendations
This now-defunct commission released a report urging the U.S. to:
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Accelerate AI research and development.
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Improve AI education and workforce training.
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Create a national AI strategy focused on leadership and security.
3. The Foreign Adversary Communications Transparency (FACT) Act
This legislation would increase transparency for U.S. companies doing business with foreign adversaries in the tech space.
4. Sen. Rounds’ Advocacy for AI-specific Legislation
Rounds has personally advocated for:
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AI export controls specific to certain deep learning and computer vision technologies.
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Funding defense-focused AI research within the Department of Defense and DARPA.
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Vet Chinese investment in AI startups in Silicon Valley, especially those that handle biometric data or national security contracts.
The Role of Universities and Research Labs
One overlooked vector for technology theft is academic collaboration. Chinese nationals working or studying in U.S. research institutions often gain access to sensitive materials. While most are legitimate scholars, some are acting under the influence of the CCP’s “Thousand Talents Program,” which encourages expatriates to bring valuable technology home.
Sen. Rounds has called for a more robust screening process for international research partnerships, particularly in sensitive fields like AI, quantum physics, and aerospace.
He stops short of endorsing a full ban on Chinese students but insists that transparency, intent, and national interest must be balanced.
Industry Cooperation: The Private Sector's Role
Rounds emphasizes that the private sector cannot ignore these national security threats. While many tech companies resist government interference, a cooperative approach is essential for safeguarding American leadership.
“This is not just a government problem. If you’re building a product that could be used in military applications, you need to know who’s buying it, who’s copying it, and what they’re using it for,” Rounds stated.
Key recommendations for industry players include:
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Stronger cybersecurity protocols.
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Vet customers and partners carefully.
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Report suspicious inquiries or behavior.
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Invest in AI ethics and responsible development.
A Pragmatic Approach to China
Rounds stresses that not every interaction with China is hostile, and he does not support a complete technological blockade.
“We’re not looking for a Cold War-style isolation. We’re looking for competitive coexistence, where we protect our national interests without sabotaging global cooperation.”
He argues that the U.S. and China will still need to collaborate on global challenges like climate change, health, and disaster response. But when it comes to sensitive technologies like AI, the line must be clearly drawn.
Geopolitical Consequences: The Global AI Arms Race
The United States is not the only country worried about China’s AI rise. Allies in Europe, Japan, South Korea, India, and Australia are also tightening rules on data sharing, technology exports, and AI research collaboration.
In parallel, China is investing heavily in its Made in China 2025 strategy, aiming to become self-sufficient in semiconductors, robotics, and AI by the end of this decade.
This has led to what many call a global AI arms race, where countries are scrambling to secure access to chips, data, and talent while preventing adversaries from gaining an upper hand.
What Comes Next: A Call for National Strategy
Sen. Rounds and other national security leaders are pushing for the United States to create a coordinated, long-term AI defense strategy—not just isolated bills or funding programs.
Such a strategy would include:
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A national AI cybersecurity shield.
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Public-private partnerships on AI R&D.
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Incentives for companies to develop secure, privacy-preserving AI.
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Workforce programs to train more AI experts domestically.
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Rules for responsible and ethical AI use.
Without such a roadmap, Rounds warns, the U.S. could fall behind in what he calls the “AI race for global influence.”
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Conclusion: Vigilance Without Isolation
Sen. Mike Rounds’ position reflects a growing consensus in Washington: the U.S. must not let its AI edge slip away through complacency or theft. While total decoupling from China isn’t viable—or even desirable—certain boundaries must be respected and defended.
The path forward is one of vigilance without paranoia, strength without aggression, and innovation with integrity.
By securing its AI frontier, the United States can maintain its leadership in the digital era—while preserving the values of freedom, openness, and innovation that have long defined its technological triumphs.