Chinese Bitcoin Makers Shift to US Amid Trade War

Post by : Bandanpreet Kaur

Three of the world’s biggest companies that make bitcoin mining machines — Bitmain, Canaan, and MicroBT — are now building their products in the United States. These companies are originally from China and together they make over 90% of the world’s mining machines, which are powerful computers used to create bitcoin.

The reason for this move is the growing trade fight between the US and China. After Donald Trump became president again, he announced new taxes on goods from China. These are called tariffs. To avoid paying these extra taxes, the Chinese companies decided to set up factories in the US.

Experts say this is not just a small change. Guang Yang, a tech officer at a company called Conflux Network, said this is a big change in the way the bitcoin business works. For American companies, it’s also about using technology that is seen as safer and more acceptable in the US.

Bitmain, the largest of the three companies, started making mining machines in the US in December, just after Trump won the election. Canaan also started testing production in the US to avoid the new tariffs. But a top manager, Leo Wang, said the company is being careful because the trade situation is still uncertain. MicroBT said in a statement that they are also working to set up operations in the US to avoid tariffs.

These three companies are key players in a huge industry. Experts think bitcoin mining and related businesses could be worth 12 billion US dollars by 2028. Mining bitcoin takes a lot of electricity and uses big machines, so it's an important part of the digital money world.

Meanwhile, an American company called Auradine, which is supported by the biggest bitcoin miner in the US (MARA Holdings), is asking the government to slow down Chinese imports. They believe this would help US companies grow stronger. Auradine’s leader, Sanjay Gupta, said that even though 30% of bitcoin mining happens in North America, most of the machines still come from China. He says this is a problem and could even be a danger to US security because many Chinese-made machines are now connected to the American power grid.

Canaan’s manager, Leo Wang, disagrees. He says these machines are only used to mine bitcoin and can’t do anything else, so they are not a threat. Still, he admits that Chinese tech companies could face problems because of strict US rules about high-tech items.

This fear isn’t new. Bitmain’s sister company, Sophgo, which works with artificial intelligence (AI), has already been blacklisted by the US government because of security concerns.

This shows how the US-China trade war is not only affecting regular businesses but also changing the future of bitcoin and other digital technologies.

US-China trade war