US Expands National Security Restrictions to Consumer Technology Including Routers and Drones

• Chinese authorities are reviewing Meta's US$2 billion acquisition of AI startup Manus, questioning whether the deal violated technology export and overseas investment rules, marking increased regulatory scrutiny of cross-border tech transactions. • Chinese regulators reportedly restricted Manus founders from leaving the country and began examining the deal shortly after announcement, suggesting a strategic shift toward scrutinizing where technology is developed rather than where companies are registered. • The regulatory action has drawn attention across the tech industry, indicating that traditional offshore structuring strategies may no longer protect companies from government oversight as both China and the US increase AI company surveillance.

• A New Mexico jury found Meta liable for US$375 million in damages for failing to protect young people from online harm, including exploitation by sexual predators, in violation of state consumer protection laws. • This verdict follows a separate Los Angeles jury decision ordering Meta and Google to pay US$6 million to a 20-year-old woman over claims that their apps were addictive and caused mental health crises. • Multiple states have filed similar cases against Meta, signaling a broader accountability movement targeting major tech platforms' user engagement and safety practices.

• The US-China technology rivalry is increasingly centered on quantum computing, with both nations treating the field as a strategic asset with profound economic and national security implications alongside AI and semiconductors. • China has deployed an estimated US$16 billion in public funding—roughly four times current US government investment—embedding quantum computing into its Five-Year Plan as one of seven frontier technologies through a highly centralized, state-led approach. • The US ecosystem remains decentralized, driven by over 40 companies, national laboratories, universities, and hyperscalers, with government support focused on funding, benchmarking, and validation rather than selecting national champions.

• The Artemis II crew held a virtual media briefing from their quarantine facilities at Kennedy Space Center on March 29, 2026, providing updates on mission preparations and crew status. • The media event represents a standard pre-launch protocol for NASA's crewed lunar missions, allowing the public and press to interact with astronauts before their departure. • This briefing marks a key milestone in the Artemis II mission timeline, bringing the crew closer to their scheduled launch date.

• Tech companies including Palantir, Anthropic, and Anduril are increasingly partnering with the US Department of Defense, marking a significant shift from decades of strained relations between the tech sector and military. • Anduril announced a 10-year, US$20 billion contract with the US military, while Palantir's Maven data analytics platform and Anthropic's AI have been used extensively in operations against Iran, including defense against Shahed drones. • The collaboration represents what investors view as a lucrative opportunity, with traditional military contractors like Lockheed Martin and Boeing now joined by rising tech giants in supplying cloud computing, AI-powered drones, and advanced defense systems.

• Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) announced an 'agreement in principle' with the White House on stablecoin yield payments in crypto market structure legislation on March 28, 2026. • The non-public text addresses key issues for Senate Banking Committee markup in April, following talks with banking and crypto industry stakeholders. • Coinbase expressed opposition to the proposed language, potentially impacting final negotiations.

• President Trump called on a gridlocked Congress to establish a unified national AI regulatory framework to prevent a patchwork of state laws on March 28, 2026. • States have enacted dozens of AI laws covering child safety, transparency requirements, and whistleblower protections due to federal inaction. • The White House framework emphasizes protecting children from AI harms and consumers from data center cost increases, prompting mixed reactions from lawmakers.

• White House technology advisor David Sacks has expanded his role to become co-chair of a newly formed presidential advisory council focused on guiding U.S. leadership in artificial intelligence. • The council aims to shape national AI policy and strategy amid intensifying global competition. • This development underscores the Biden administration's push to maintain U.S. dominance in AI innovation and deployment.

• The U.S. government has designated Anthropic's Claude AI model as a potential supply-chain risk amid evaluations for military applications. • This follows Department of Defense introductions of new guardrail policies for military AI use, with xAI’s Grok also entering classified systems. • The move highlights growing scrutiny on AI models' security and reliability for national defense.

• U.S. lawmakers and Silicon Valley leaders are converging on policies to counter China's rapid AI advances, viewing it as a strategic economic battle. • House Speaker Mike Johnson urged tech firms to keep chips, data centers, and AI systems domestic and away from geopolitical rivals. • Proposed GAIN AI Act would mandate prioritizing U.S. access to advanced AI chips and require export licenses to countries of concern.

• Major companies—Amazon, Google, Meta, Microsoft, Oracle, OpenAI, and xAI—signed a federal pledge to provide their own electricity for AI data centers, shielding U.S. consumers from grid overload. • The commitment responds to exploding energy needs from AI infrastructure, following Meta's Louisiana gas plant initiative and similar efforts nationwide. • Industry leaders aim to prevent rate hikes and blackouts while fueling the AI boom central to U.S. tech competitiveness.