US government commission pushes Manhattan Project-style AI initiative
Proposal comes as competition with China over advanced technologies intensifies
Public-private partnerships crucial for AI advancement, USCC report says
USCC recommends ending de minimis trade exemption for Chinese goods
Adds commissioner comment on de minimis in paragraphs 10-13
By Anna Tong and Michael Martina
Nov 19 (Reuters) -A U.S. congressional commission on Tuesday proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart or smarter than humans, amid intensifying competition with China over advanced technologies.
The bipartisan U.S.-China Economic and Security Review Commissionstressed that public-private partnerships are key in advancing artificial general intelligence, but did not give any specific investment strategies as it released its annual report.
The Manhattan Project was a large-scale collaboration between the U.S. government and the private sector during World War Two that produced the first atomic bombs.
"We've seen throughout history that countries that are first to exploit periods of rapid technological change can often cause shifts in the global balance of power," Jacob Helberg, a USCC commissioner and senior advisor to software company Palantir's CEO, toldReuters.
"China is racing towards AGI ... It's critical that we take them extremely seriously," Helberg added.
Noting that energy infrastructure is a significant bottleneck for training large AI models, Helberg suggested that streamlining the permitting process for data centers might be an example of how a public-private partnership could accelerate AI development.
ChatGPT maker OpenAI, which last week released a proposed blueprint for U.S. AI strategy, has also called for more government funding for artificial intelligence.
The USCC, established by Congress in 2000, provides annual recommendations on U.S.-China relations. Known for its hawkish policy proposals, the commission aims to guide lawmakers on issues of economic and strategic competition with China.
Other recommendations in this year's USCC report include repealing the de minimis trade exemption that allows Chinese goods under $800 to bypass tariffs with minimal paperwork and inspection, ending preferential capital gains treatment linked to Chinese companies on government watchlists and requiring approval of Chinese involvement in biotechnology companies operating in the U.S.
Commissioner Kimberly Glas said at a briefing on the report that immediate elimination of de minimis treatment for e-commerce goods was one of the most critical recommendations from the panel, given that the enormous volume of packages makes it difficult for Customs and Border Protection to stop the flow of dangerous products into the U.S., including fentanyl chemicals and pill presses.
"Just to give you a sense of the trajectory, it's 4 million boxes a day, estimated to be 1.4 billion de minimis shipments over this past year, according to CBP," Glas said. "It is impossible to police what is in those boxes.
"In the 1930s de minimis was created so we could bring back trinkets from abroad and not have to pay a tariff. In the e-commerce environment, it has become a funnel for Chinese products to receive duty-free, no-scrutiny treatment," she said.
Republican and Democratic lawmakers have also introduced a series of bills that aim to rein in de minimis, particularly for shipments from China. But bipartisan cooperation has been elusive in a tumultuous election year, and the shipping industry and pro-trade groups have lobbied against such measures, arguing it would disrupt e-commerce.
Reporting by Anna Tong in San Francisco and Michael Martina in Washington; Editing by Nicholas Yong and Andrea Ricci
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
