Governments need to develop quantum communications, sensors, post-quantum cryptography, workforce, and supply chains, rather than limiting their strategies to computing alone. This is stated in a report from IBM's research center on government issues.

The document compares the strategies of the U.S., China, the European Union, India, and Australia across five areas:

  • investment;
  • innovation;
  • education;
  • security;
  • international cooperation.

The central thesis of the report is the risk of "tunnel vision." According to the authors, countries that focus solely on quantum computers may fall behind in other areas such as secure communication, high-precision sensors, and data protection against future cryptographic attacks.

"Global investments in quantum technologies exceeded $40 billion in 2024, with countries worldwide allocating substantial public and private resources for preparation. In this environment, leveraging quantum computing for public value requires more than awareness—it demands strategic action," the authors noted.

Why It Matters

Quantum-effect-based sensors can be used for ultra-precise measurements, navigation, medical imaging, and geological exploration. Communication solutions in this field are tied to secure data transmission. Post-quantum cryptography is necessary to transition from algorithms that may become vulnerable to sufficiently powerful quantum computers in the future.

The report emphasizes the urgency of this transition with a scenario of "collect now, decrypt later." This means that an attacker could intercept encrypted data today and decrypt it later when the opportunity arises.

Recommendations from the Authors

Experts believe that countries that can sustain investments over the years, train specialists, protect digital infrastructure, and translate research into practical solutions will gain an advantage.

For governments, the most immediate practical track is not waiting for a universal quantum computer but preparing infrastructure for post-quantum cryptography. Here, standards, deadlines, and a clear set of actions already exist: inventorying systems, updating algorithms, vetting suppliers, and migrating digital signatures.

"These recommendations acknowledge budgetary, organizational, and geopolitical constraints, while demonstrating that the cost of inaction outweighs the value of long-term engagement," the report states.

The authors also pointed out that many quantum developments emerge at the intersection of academic, governmental, and commercial projects, so complete isolation could hinder progress.

The U.S., China, and the EU

The U.S. is described in the document as a country with a strong research base, national laboratories, universities, and private capital. According to the report, American quantum startups attracted over $1.5 billion in venture funding in 2024.

In May, the U.S. Department of Commerce allocated $2 billion to local companies engaged in quantum computing. The U.S. administration will receive minority stakes in these projects. Half of the funding will go to IBM "to facilitate the creation of supercomputers capable of addressing some of the world's most pressing problems."

China follows a more centralized model. The document mentions state investments of approximately $15.3 billion, but notes the opacity of Chinese expenditures and the variability of external assessments. The strategy emphasizes quantum communications, centralized planning, and the role of state institutions.

It is known that on June 30, the Shanghai Quantum Computing Future Industry Incubation Zone was launched in the Xuhui area of Shanghai. The first group included 26 unnamed companies. According to media reports, support measures include up to 100 million yuan ($14.7 million) for fundamental research, technological innovations, and shared platforms. An additional 20 million yuan ($2.9 million) will be allocated for initial installations or prototypes.

The EU is attributed around $10 billion in public funding. Key initiatives mentioned include Quantum Flagship and the EuroHPC quantum infrastructure. However, the report notes that commercialization in the EU is progressing more slowly than in the U.S., and research remains partially fragmented among the countries in the bloc.

In July, at the Digital Skills EU Days in Brussels, it was announced that three digital skills academies would be launched—focused on quantum technologies, artificial intelligence, and virtual worlds. This initiative aims to address the skills gap in key technological sectors. The EU aims to increase the share of adults with basic digital skills to 80% and the number of specialists to 20 million by 2030.

India is presented in the document as a country building its foundational base through national programs and international partnerships. Australia is characterized as a market with a strong scientific community but facing challenges in commercialization and talent retention. Previously, the photonic quantum computer developer PsiQuantum began construction of a facility in Queensland, where the company plans to house a fault-tolerant quantum computer on an industrial scale.

It is worth noting that the analytical organization Special Competitive Studies Project concluded that the U.S. currently maintains a slight edge over China in the quantum race. However, this gap is narrowing and could disappear within a few years.