Chinese Bitcoin Machine Manufacturer Moves Production To US To Avoid Trump Tariffs

Bitmain bitcoin mining illustration that started production in the United States. (photo: x @Extra_Muan)

JAKARTA - Three of the world's largest bitcoin mining engine manufacturers from China Bitmain, Canaan, and MicroBT are starting production in the United States. This is done to avoid the impact of the trade war triggered by US President Donald Trump and at the same time secure their position in the global crypto supply chain.

These three companies produce more than 90% of the global bitcoin mining machines specifically used to calculate and verify bitcoin transactions. By setting up a production base in the US, they hope to avoid new import rates, although this move also raises national security concerns amid tensions. technology between the US and China.

"The US-China trade war sparked structural changes, not just cosmetics, in the bitcoin supply chain," said Guang Yang, CTO of crypto technology provider Conflux Network.

Apart from tariffs, according to Yang, this step is a strategic shift from US companies to switch to more politically acceptable hardware sources.

Bitmain started production in the US since December 2024, shortly after Trump won the election. While the Canaan tested the lines of experimental production in the US after Trump announced on April 2 a new tariff titled 'Liberation Day'.

MicroBT said in its statement that it was implementing a localization strategy to avoid tariff impacts.

China's dominance and US Reaction

The three companies took control of the hardware market worth more than 12 billion US dollars (approximately IDR 195.96 trillion) in 2028, and is an early part of the bitcoin mining ecosystem involving large energy consumption and digital infrastructure.

However, China's dominance raises concerns. US competitor Auradine, backed by MARA Holdings, is lobbying machine supply restrictions from China to create healthy competitions in the sector.

"Although more than 30% of bitcoin mining is taking place in North America, more than 90% of its hardware still comes from China," said Sanjay Gupta, Head of Auradine's Strategy.

According to him, hundreds of thousands of Chinese engines connected to US power grids are a national security risk.

The Canadians denied this, stating that their machines did not pose a security threat because they only functioned to mine bitcoin. However, they recognize the risk of being exposed to side effects from high-tech restrictions by the US government.

Bitmain hasn't commented yet, but their AI affiliate, Sophgo, has been blacklisted for security reasons.

Prior to the ban on cryptocurrencies by the Chinese government in 2021, the country dominated the entire bitcoin ecosystem, from mining to trading. However, after the ban, miners and industry players moved abroad, even though producers such as Bitmain, Canaan, and MicroBT remained market leaders.

The canal has moved its headquarters to Singapore, with 40% of last year's revenue coming from the US market. They are also building a trial production line in the US to lower costs and avoid import rates.

Trump has promised to become "President of Crypto" and encourage the widespread use of bitcoin in the US. His son, Eric Trump, has even launched a new mining company called American Bitcoin with energy companies and Hut 8 technology, with the aim of forming US strategic bitcoin reserves.

However, the dominance of hardware from China could actually be a weak point for the US bitcoin industry, according to crypto lawyer John Deaton.

"If China restricts exports or manipulates supply, it could disrupt bitcoin network stability and harm US users and investors," Deaton said.