The U.S. Congressional Commission (USCC) proposed an AI Breakthrough Initiative to lead the development of AI systems as smart or smarter than humans. The U.S.-China Economic and Security Review Commission (USCC) emphasized the need for public-private partnerships to advance artificial general intelligence (AGI). However, the commission did not provide specific investment strategies in its annual report.
The Manhattan Project: AI Breakthrough Initiative
The Manhattan Project was a large-scale collaboration between the U.S. government and the private sector during World War II, resulting in the first atomic bombs. “Countries that lead in rapid technological change can shift the global balance of power,” said Jacob Helberg, a USCC commissioner and senior advisor to Palantir’s CEO.
Helberg added that China is aggressively pursuing AGI, and it’s crucial to take them seriously. Energy infrastructure is a significant bottleneck for training large AI models. Streamlining the permitting process for data centers could accelerate AI development through public-private partnerships. 
OpenAI Blueprint for AI Strategy
OpenAI, the maker of ChatGPT, recently released a blueprint for U.S. AI strategy, calling for increased government funding. One of the main issues OpenAI focuses on is the need for federal and state initiatives to speed up permitting and approvals for developing wind farms, solar arrays, and nuclear reactors. These energy sources would power AI infrastructure. To incentivize local communities, a portion of the computing power generated by these data centers would be allocated for public use. This could support public universities and help build developer ecosystems. By doing so, these communities would benefit from the economic activity around the AI data center.
AI Breakthrough Initiative: The Crucial Role of Energy in AI Plans
OpenAI sees nuclear power as crucial for future AI technology. The company’s key pillar for building AI infrastructure aims to strengthen and rebuild the country’s nuclear power capabilities. It has highlighted the U.S. Navy’s use of nuclear power in submarines for 75 years as evidence of its potential. The Navy has been doing this for 75 years. They know how to do it. If the US can use nuclear power in submarines, it should be able to use it in other places in the U.S. to provide energy.
Repealing the De Minimis Trade Exemption for Chinese Goods Under $800
The US Commission also recommended repealing the de minimis trade exemption. This currently allows Chinese goods valued under $800 to enter the country duty-free and with reduced regulatory oversight. Such repeal would subject all Chinese imports, regardless of value, to tariffs and stricter customs inspections. This could increase costs for US consumers and businesses relying on low-value Chinese goods.
The move aims to counter China’s unfair trade practices, reduce the US trade deficit, and curb the influx of counterfeit or unsafe products that often exploit the de minimis loophole. The change would particularly affect e-commerce platforms and small online sellers, who might face increased logistical complexities and costs, potentially altering the landscape of online retail in the US.
Elimination of De Minimis Treatment for E-Commerce Goods
Commissioner Kimberly Glas highlighted the immediate elimination of de minimis treatment for e-commerce goods as a critical recommendation. Customs and Border Protection (CBP) processes 4 million boxes daily, making it difficult to inspect dangerous products, including fentanyl chemicals and pill presses.
In the 1930s, de minimis was created for small personal items. Today, it facilitates duty-free, no-scrutiny treatment for Chinese e-commerce goods. Republican and Democratic lawmakers have introduced bills to address the AI Breakthrough Initiative, but bipartisan cooperation has been challenging in an election year. The shipping industry and pro-trade groups oppose such measures, citing potential disruptions to e-commerce.
Addressing China’s Unfair Trade Policies
The US Commission proposed addressing China’s unfair trade practices to ensure a level playing field for US businesses. This would prevent them from being disadvantaged by subsidies, intellectual property theft, and market access barriers. By countering unfair trade, the US can protect domestic jobs and industries vulnerable to competition from artificially cheap Chinese imports.
Moreover, reducing reliance on Chinese goods, especially in critical sectors like technology and pharmaceuticals, enhances national security by minimizing vulnerabilities to supply chain disruptions. Likewise, with the AI Breakthrough Initiative, enforcing fair trade practices sets a precedent for global trade norms. This would encourage other countries to adhere to international standards and fostering a more stable and predictable global economic environment.
Stricter oversight of Chinese imports helps ensure the safety and quality of products, protecting US consumers from potential health and safety risks associated with substandard goods. These measures are crucial for maintaining the economic health, security, and competitiveness of the United States in the global marketplace
