Trump’s China trip puts Bitcoin miners back in the spotlight

Trump’s historic visit to Beijing had nothing to do with crypto. However, Bitcoin was up 2.3% to $96,800 while the meeting was being happening.

The reason behind Trump’s meeting with Xi on 14th and 15th May was the trade dispute headache that has been going on since 2022 between the two biggest economies.

NVIDIA was on the center stage because of the American blockade of its H100 processors, including overall export restrictions on advanced AI chips. This was a market worth over 15 billion in annual sales before the trade disputes spoiled it.

Both leaders discussed extending a trade agreement first reached in South Korea last October. That deal paused tariffs on more than $300 billion worth of goods and covers critical minerals needed to build cryptocurrency mining equipment and batteries.

Beijing restated its usual positions on Taiwan weapons sales and economic development rights. The agenda also included aircraft purchases, agricultural products, energy deals, and new trade forums. Issues around AI technology, semiconductors, Taiwan, and Iran stayed unresolved.

China doubles down on crypto crackdown as US builds regulatory framework

Many people thought Trump’s trip might ease China’s stance on cryptocurrency. Recent actions by Chinese regulators tell a different story, as reported by Cryptopolitan.

Authorities there have tightened rules on crypto trading, tokenized real-world assets, and yuan-linked stablecoins this year. Even talking about crypto on social media for promotion is getting banned, effective on September 30.

The business executives traveling with Trump are from BlackRock, Goldman Sachs, Visa, Mastercard, Apple, Tesla, Meta, Qualcomm, Micron, and Boeing.

BlackRock and Goldman Sachs are expanding Bitcoin ETFs and tokenized financial products. Visa and Mastercard are building stablecoin payment networks. As reported by Reuters, these companies are seeking partnerships in China.

Reva Goujon, a geopolitical strategist at Rhodium Group, said, “Besides Boeing and Cargill being linked to purchase agreements, the others are mainly there to deliver demands on critical input supply.”

Trump’s son, Eric Trump, has coincidentally traveled to Beijing during the same period. He is the vice president of the Trump Organization. Both the company and the White House say he made the trip on his own time, not in any official role.

Democratic lawmakers have raised questions about possible conflicts, pointing to his business connections with Bitmain, a China-based company that makes equipment for cryptocurrency mining.

Bitcoin mining depends heavily on China

Bitcoin mining companies are watching closely because most still depend on Chinese suppliers for specialized computers, semiconductor parts, and rare earth materials. North American operations now lead global network growth, but the equipment comes from China.

America has recently put forward a “Mined in America Act” bill to boost domestic mining investment, build local supply chains, and create a national Bitcoin reserve. It aims at cutting dependence on Chinese bitcoin mining gear. The senators argue that heavy reliance on foreign hardware creates risks if supply chains get disrupted or security problems emerge.

The numbers show why they’re concerned. The United States accounts for roughly 38% of worldwide Bitcoin mining activity, but 97% of the specialized computers doing that mining come from China.

Their bill would give companies time to switch away from imported mining equipment, with full compliance required by the decade’s end. It would also set up a “Mined in America” certification program to verify domestically-sourced mining operations.

However, if the US and China build better trade relations, it could mean lower equipment prices and fewer supply delays. Worse relations would push hardware costs higher and slow down mining expansion outside China.

Either way, profit margins for American, Canadian, and European miners could shift if Chinese operations regain access to top-grade semiconductors.

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