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Tim Cook reaffirms Apple’s commitment to China amid U.S.-China trade tensions

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Apple CEO Tim Cook pledged to increase the company’s investment in China during a meeting with China’s Industry Minister Li Lecheng in Beijing on Wednesday, signaling Apple’s intent to strengthen its presence in its most crucial manufacturing hub despite rising geopolitical tensions.

According to an official Chinese summary, Cook said Apple would continue to invest in China, though details of the scale or focus of the investment were not disclosed. The move comes as many U.S. firms tread cautiously between Beijing and Washington, with U.S. President Donald Trump pushing for domestic manufacturing and imposing tariffs that have strained global supply chains.

Apple has so far avoided the direct fallout of the trade war, unlike other tech firms such as Nvidia and Qualcomm, which have faced regulatory challenges in China. Still, the iPhone maker must balance its relationships carefully — reassuring Washington of its “American Manufacturing Program,” while maintaining ties with Chinese suppliers that produce the bulk of its devices.

Earlier this week, Apple COO Sabih Khan visited Lens Technology, a longtime Chinese supplier of iPhone glass components, while Cook toured Apple’s Shanghai store and met with local developers and designers. Apple’s sales in China rose 0.6% year-on-year in the third quarter, aided by strong demand for the iPhone 17 series, making it the only top-three smartphone brand in the country to post growth.

China’s industry minister expressed optimism that Apple would “continue to explore the Chinese market and grow together with Chinese suppliers,” emphasizing Beijing’s intent to sustain a favorable environment for foreign businesses.

Chinese Bitcoin Mining Hardware Giants Establish U.S. Production to Circumvent Tariffs

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The world’s top three manufacturers of bitcoin mining machines — Bitmain, Canaan, and MicroBT — are setting up production bases in the United States as part of a strategic response to President Donald Trump’s tariff policies. These firms, all originally Chinese, dominate over 90% of the global market for mining rigs, specialized computers essential for bitcoin mining.

The move aims to avoid hefty U.S. tariffs imposed amid escalating trade tensions, while potentially easing geopolitical concerns related to China’s influence over critical tech infrastructure. Guang Yang, CTO of Conflux Network, highlighted that the trade war is triggering deep structural changes in bitcoin’s supply chain, pushing U.S. companies toward sourcing hardware from politically acceptable locations.

Bitmain, the largest by sales, began U.S. production in December 2023, shortly after Trump’s re-election. Canaan started trial U.S. production after Trump announced new tariffs on April 2, seeking to shield itself from duties. MicroBT is actively pursuing localization in the U.S. to reduce tariff impacts.

This sector, valued by analysts at around $12 billion by 2028, includes upstream mining rig production, energy-heavy bitcoin mining, IT infrastructure, and trading platforms. U.S. rival Auradine, backed by leading miner MARA Holdings, is lobbying to restrict Chinese equipment imports to boost competition in hardware.

Despite 30% of global bitcoin mining taking place in North America, more than 90% of mining hardware comes from China, creating an imbalance and raising security concerns. Auradine’s Sanjay Gupta warned of risks linked to “hundreds of thousands” of Chinese rigs connected to the U.S. grid. However, Canaan’s Leo Wang dismissed security threats from mining rigs, stating they are ineffective outside bitcoin mining, though he warned Chinese manufacturers could face collateral impacts from U.S. tech restrictions.

Bitmain’s AI arm, Sophgo, was recently blacklisted by the U.S. government over security concerns, illustrating rising scrutiny of Chinese tech firms.

Historically, China dominated bitcoin from hardware through mining and trading until 2021, when Beijing banned cryptocurrency activities citing financial risks. Miners and exchanges moved abroad, but Chinese manufacturers maintained dominance in hardware, leveraging their early lead in designing mining-specific chips.

Canaan has relocated its headquarters to Singapore and established a U.S. pilot production line, with the U.S. contributing 40% of its revenue last year. Wang emphasized the goal of reducing costs amid tariffs by exploring all alternatives.

The U.S. currently imposes a baseline 10% tariff on many imports and an additional 20% on Chinese goods, with potential further tariffs on Southeast Asian countries hosting Chinese assembly plants.

While Trump promotes crypto-friendly policies and has positioned himself as a “crypto president,” China’s dominance in bitcoin infrastructure remains a potential choke point. Legal expert John Deaton warned that China’s control could disrupt bitcoin network stability and impact U.S. users if exports are restricted.

Top U.S.-based miners, including MARA, Core Scientific, CleanSpark, and Riot Platforms, face risks from heavy reliance on Chinese hardware. Economist Ryan Yonk noted this dependence is “potentially problematic” despite Chinese rig makers’ efforts to establish a U.S. presence.

Kadan Stadlemann, CTO at Komodo, said U.S. miners will still buy rigs from China in the short term and face higher costs, but the tariff-driven shift aims to reshape the industry’s supply chain long term.

U.S. Suspends Nuclear Equipment Export Licenses to China Amid Escalating Trade Tensions

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The U.S. government has recently suspended export licenses for nuclear equipment suppliers selling to China’s power plants, according to sources familiar with the situation, marking a significant escalation in the ongoing trade war between the two countries.

These suspensions, issued by the U.S. Department of Commerce, target parts and equipment critical for nuclear power plant operations. The move is part of broader export restrictions imposed over the past two weeks on various companies as Washington shifts from tariff negotiations toward restricting supply chains linked to China.

The suspensions impact major U.S. nuclear equipment suppliers, including Westinghouse—whose technology powers over 400 reactors worldwide—and Emerson, a provider of nuclear industry measurement tools. These restrictions are estimated to affect hundreds of millions of dollars in business.

The U.S. and China had agreed on a 90-day truce on tariffs starting May 12, but tensions quickly resurfaced. The U.S. accuses China of reneging on rare earth element agreements, while China criticizes the U.S. for abusing export controls, notably concerning Huawei’s AI chips. A new round of talks between President Donald Trump and President Xi Jinping was scheduled for June 9 to address these issues.

In addition to nuclear equipment, the U.S. has imposed new export license requirements on hydraulic fluids suppliers, aerospace companies like GE Aerospace (jet engines for China’s COMAC aircraft), and ethane shipments. Houston-based Enterprise Product Partners reported delays in approval for ethane cargoes to China due to the new licensing rules.

China, for its part, insists it is honoring the Geneva agreement and calls on the U.S. to lift its restrictive measures. The Chinese Embassy emphasized that its rare earth export controls follow global norms and are not targeted specifically at any country.

The ongoing export curbs come amid China’s restrictions on critical metals, which have disrupted global supply chains, particularly affecting U.S. automakers. Although China has granted temporary export licenses for rare earths to U.S. automakers, the situation remains volatile.

It remains unclear how long the U.S. export license suspensions will last or whether they will be reversed following diplomatic discussions.