China’s Bitcoin Rig Giants Shift to U.S. to Dodge Tariffs – Coincu

Key Points: 

• China’s top Bitcoin rig makers shift to U.S. to bypass 25% tariffs on imported goods.
• U.S. experts raise security concerns over growing Chinese hardware presence in Bitcoin mining networks.
• Despite U.S. production, Bitcoin miners still depend on Chinese rigs amid rising demand and limited supply.

The three leading Chinese manufacturers of Bitcoin mining machines—Bitmain, MicroBT, and Canaan—are now setting up production in the United States. The move is aimed at avoiding heavy U.S. tariffs on Chinese imports. Together, the companies produce 99% of all Bitcoin mining ASICs globally, according to a University of Cambridge study.

Bitmain began U.S. production of mining rigs in December 2024. MicroBT confirmed that it is implementing a U.S. localization strategy. Canaan has started trial production and is evaluating further investment based on how tariffs evolve. Executive Leo Wang said the effort is “exploratory” due to the uncertain trade environment.

Tariffs Reshape Global Bitcoin Mining Supply Chain

The Trump administration’s trade policies have increased tariffs on Chinese imports to 25%, with some goods previously facing rates of over 100%. This trade shift is forcing manufacturers to rethink global production strategies. Establishing U.S. bases allows Chinese rig makers to maintain access to a growing American mining market without the added cost burden of tariffs.

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

U.S. Experts Warn About Bitcoin Hardware Security Risks

The increased presence of Chinese mining hardware in the U.S. has raised national security questions. Sanjay Gupta, Chief Strategy Officer at Auradine, stated that “hundreds of thousands of them connected to the U.S. electrical grid” is a potential risk. He called the situation a “major imbalance of geographic demand and supply.”

Canaan’s Leo Wang responded that Bitcoin mining machines do not pose a threat because “they are useless if not applied to bitcoin mining.” Still, he acknowledged that Chinese manufacturers could face “collateral damage” from broader U.S. restrictions on high-tech imports.

Bitmain’s AI division, Sophgo, has already been blacklisted by U.S. authorities, further adding to the scrutiny of Chinese tech involvement in critical industries.

U.S. Miners Depend on Chinese Hardware Despite Local Moves

Despite the shift toward local manufacturing, U.S.-based miners still rely heavily on Chinese-made rigs. Analysts say it will take time before domestic production meets demand. The market for Bitcoin mining hardware is expected to reach $12 billion by 2028.

John Deaton, a crypto-law attorney, stated, 

“If China restricts exports or manipulates supply … it could disrupt bitcoin’s network stability and affect U.S. users and investors.” 

Ryan M. Yonk from the American Institute for Economic Research also warned of “potentially problematic” over-reliance on Chinese hardware.

Canaan has moved its headquarters to Singapore and reported that 40% of its revenue now comes from the U.S. Wang said, “We have to explore all alternatives,” noting that U.S. tariffs are shaping key strategic decisions.