Chinese Bitcoin Mining Rig Makers Move to U.S. Amid Tariff Pressure

The top three global manufacturers of bitcoin mining machines—all Chinese—are establishing production bases in the United States as President Donald Trump’s trade policies reshape the crypto supply chain, as reported by Reuters.

Bitmain, Canaan, and MicroBT, which together produce more than 90% of the world’s mining rigs, are seeking to avoid U.S. tariffs by localizing operations. But their expansion into the U.S. also raises national security concerns, given the broader U.S.-China tensions surrounding chip manufacturing and energy infrastructure.

“The U.S.-China trade war is triggering structural, not superficial, changes in bitcoin’s supply chains,” said Guang Yang, CTO of Conflux Network. “This goes beyond tariffs. It’s a strategic pivot toward ‘politically acceptable’ hardware sources,” he added.

Bitmain, the largest of the trio, began U.S.-based production in December, shortly after Trump’s electoral victory. Canaan launched trial production in the U.S. following Trump’s April 2 announcement of the so-called “Liberation Day” tariffs.

“The initiative is exploratory as the volatile tariff situation precludes heavy investment,” said Leo Wang, senior executive at Canaan.

MicroBT also confirmed that it is “actively implementing a localisation strategy in the U.S.” to “avoid the impact of tariffs.”

These companies dominate a rapidly expanding industry that analysts expect to reach $12 billion by 2028. Their influence spans the full chain of bitcoin mining, from high-performance hardware to energy and trading infrastructure.

U.S.-based firm Auradine, backed by leading bitcoin miner MARA Holdings, is lobbying for restrictions on Chinese imports to encourage domestic competition.

“While over 30% of global bitcoin mining occurs in North America, more than 90% of mining hardware originates from China representing a major imbalance of geographic demand and supply,” said Sanjay Gupta, Auradine’s Chief Strategy Officer.

According to Frost & Sullivan, as of December 2023, the three Chinese firms accounted for 95.4% of the global mining rig market by computing power sold.

Gupta also warned about potential risks. “Hundreds of thousands of them connected to the U.S. electrical grid is a security risk,” he said.

Wang, however, pushed back on security concerns, stating “They are useless if not applied to bitcoin mining,” though he admitted that Chinese companies could become “collateral damage” from broader U.S. tech restrictions.

The risk is real—Bitmain’s AI unit Sophgo has already been blacklisted by the U.S. government.

From China to the World

China once controlled the entire bitcoin value chain, from rig manufacturing to mining and trading, before banning domestic crypto activity in 2021. Although exchanges and miners relocated abroad, Chinese hardware makers like Bitmain, Canaan, and MicroBT maintained global dominance thanks to early innovations in high-performance mining chips.

Canaan has since moved its headquarters to Singapore, while retaining operations in China. It also established a pilot production line in the U.S., which now accounts for 40% of its revenue.

“The rationale is to try to reduce the cost for both us and our customers,” said Wang. “The prospect of tariffs means we have to explore all alternatives.”

U.S. import policy now includes a 10% baseline tariff on many goods, with an additional 20% levy on Chinese imports. There’s also the possibility of increased tariffs on imports from Southeast Asia—where Chinese companies have opened assembly lines.

Strategic Shifts

President Donald Trump has branded himself as the “crypto president,” promising to promote mainstream crypto adoption in the U.S. His administration has taken a pro-industry stance, including efforts to create a strategic bitcoin reserve via a venture launched by his son, Eric Trump, and Hut 8.

Still, Trump’s crypto-friendly approach may place renewed attention on China’s overwhelming role in bitcoin infrastructure.

“China’s hardware dominance creates a choke point for U.S. miners,” warned John Deaton, a crypto law expert. “If China restricts exports or manipulates supply … it could disrupt bitcoin’s network stability and affect U.S. users and investors.”

With major U.S. miners like MARA, Core Scientific, CleanSpark, and Riot Platforms all reliant on Chinese hardware, the imbalance poses a strategic concern, said Ryan M. Yonk, economist at the American Institute for Economic Research.

Even as rig makers begin building in the U.S., American miners are still dependent on Chinese imports in the near term.

“But this isn’t about hurting the industry. It’s about forcing a long-overdue shift,” said Kadan Stadlemann, CTO at Komodo.