US President Donald Trump’s meeting with Chinese President Xi Jinping in Beijing on May 14-15 occupied the world agenda. While the main focus of the meeting was the ongoing trade disputes between the two countries, it was noteworthy that Bitcoin gained 2.3% in value and reached $96,800 during the meeting. CryptoAppsy According to data, there was a significant movement in the Bitcoin market during this time.
Trade tensions and restrictions on technology
While the aim was to resolve the US-China trade crisis, which has been going on for about two years, the American export ban on NVIDIA’s artificial intelligence chips came to the fore. These obstacles to advanced AI chips such as NVIDIA’s H100 processors have caused huge losses in the $15 billion annual market.
The two leaders discussed the extension of the trade agreement reached in South Korea last October, which suspended tariffs on more than $300 billion of products. The agreement also included the supply of minerals and battery materials that are critical for cryptocurrency mining.
The Beijing administration reiterated its current stance on arms sales and economic development rights to Taiwan. Also on the meeting agenda were aircraft purchases, agricultural products, energy agreements and new trade platforms. No results were obtained on issues related to artificial intelligence, semiconductors, Taiwan and Iran.
Strict control of crypto assets from China
Although it is predicted that Trump’s visit to China could open the door to cryptocurrencies with a possible detente, Chinese regulators have further tightened the rules on crypto trading, real asset tokenization and yuan-backed stablecoins this year. Starting September 30, posts promoting crypto on social media will also be banned.
Trump’s delegation also included executives from major companies such as BlackRock, Goldman Sachs, Visa, Mastercard, Apple, Tesla, Meta, Qualcomm, Micron and Boeing. While BlackRock and Goldman Sachs are planning global moves in Bitcoin ETFs and token-based financial products; Visa and Mastercard are preparing to establish stablecoin-based payment networks. According to Reuters, these companies are looking for new collaborations in China.
Reva Goujon is a geopolitical strategist at Rhodium Group and notes that the majority of the delegation submitted requests for the supply of essential inputs; only Boeing and Cargill were involved in direct purchase agreements.
China continues to dominate Bitcoin mining
Companies engaged in Bitcoin mining still continue to depend on Chinese suppliers. Although North America is leading the growth in the global Bitcoin network, the equipment used mostly comes from China.
The USA has recently prepared a bill called the “Made in America Mining Act”. The aim of this initiative is to encourage Bitcoin mining investments to remain in the country, to highlight domestic production in supply chains and to create a national Bitcoin reserve. Senators argue that over-reliance on foreign mining equipment could create future supply and security risks.
According to data, the United States conducts approximately 38% of Bitcoin mining activities worldwide, but 97% of the equipment used originates from China. The draft law gives companies time to transition to domestic equipment and requires full compliance by 2030. A certification system will also be established to certify that the mineral is produced in the USA.
If relations between the two countries improve, reduced equipment costs and faster supply may become commonplace. However, if relations become further strained, hardware costs could rise further, slowing mining investments in countries outside China. Profitability for miners in America, Canada and Europe could also change, especially if China gets its hands on high-end semiconductors again.
