Three major Chinese bitcoin mining rig manufacturers—Bitmain, Canaan, and MicroBT—are relocating their production to the United States.
This move allows them to circumvent the punitive tariffs imposed on Chinese imports.
Chinese Trio Dominate Global Mining Rig Market
In what will be seen as a vindication of U.S. President Donald Trump’s tariff policies, three Chinese bitcoin mining rig manufacturers — Bitmain, Canaan, and MicroBT — are moving production to the United States. By shifting production to the U.S., the three companies, which account for more than 90% of global mining rigs, effectively avoid the punitive tariffs imposed on Chinese imports by the U.S. president.
According to a Reuters report, Bitmain began producing rigs in the U.S. in December, while Canaan commenced soon after Trump announced the so-called “Liberation tariffs.” Third-ranked MicroBT is said to have recently begun implementing a localization strategy to avoid the impact of the tariffs. Guang Yang, the chief technology officer at Coinflux Network, is quoted in the report confirming that the tariffs were indeed one of the reasons why the trio opted to shift production.
“The U.S.-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains,” Yang is quoted as saying.
At the height of his tit-for-tat tariff war with China, President Trump consistently asserted that the pressure from tariffs would compel affected companies to relocate their manufacturing operations to the United States. This bold claim was met with skepticism from many economists, who ridiculed Trump’s assertions by pointing out that the U.S. is not necessarily an ideal manufacturing hub.
However, the confirmation that a trio of Chinese bitcoin mining makers is indeed shifting their production to the U.S. appears to challenge the economists’ narrative. This development raises important questions about the dynamics of global manufacturing and the potential impact of trade policies on corporate decision-making.
While the relocation allows the technology companies to circumvent the sanctions, this will also likely spook U.S. authorities who are keen to keep away certain technology, including chip making, from the Chinese entities. Successive U.S. administrations, citing national security considerations, have made it a priority to block Chinese entities from accessing certain technologies.
The relocation is also likely to upset local producers like U.S. mining rig maker Auradine, which has been leading efforts to convince authorities to restrict Chinese rigs. John Deaton, a prominent pro-crypto lawyer, warns, however, that Chinese rig makers’ continued dominance “creates a choke point for U.S. miners.” He also highlighted potential consequences for U.S. investors if nothing had been done.
“If China restricts exports or manipulates supply … it could disrupt bitcoin’s network stability and affect U.S. users and investors,” Deaton stated.
