The US isn’t trying to remake China’s economy. It just wants a fairer deal.
That’s the message from US Trade Representative Jamieson Greer, who stated on May 8 that the administration’s goal is “balanced trade” with China under the current tariff framework. The phrasing matters. It’s a deliberate step back from the more combative posture of demanding structural overhauls to Beijing’s state-driven economic model, the kind of rhetoric that has defined US-China trade relations for the better part of a decade.
The tariff reality check
Here’s the thing. Calling for balance sounds conciliatory, but the existing trade architecture is anything but gentle. US tariffs on Chinese goods currently sit at 145%. That number has real consequences for the crypto industry specifically.
Bitcoin mining operations in the US rely heavily on hardware manufactured in China. ASICs, the specialized chips that power mining rigs, are predominantly produced by Chinese firms. A 145% tariff on those goods means the cost of maintaining and expanding US-based mining operations has surged dramatically. As of late April, those elevated costs were already raising questions about whether the US can sustain its position as the world’s dominant source of Bitcoin hashrate.
Why crypto markets are watching Beijing
Greer’s comments came ahead of meetings in Beijing, and the timing isn’t accidental. China announced new regulations on April 23 designed to bolster its manufacturing dominance, a move that added fuel to an already tense trade environment. Those regulations touch the very supply chains that crypto infrastructure depends on, from semiconductor fabrication to electronic component manufacturing.
During trade escalations in late 2025, over $19 billion in leveraged positions were liquidated across crypto markets. Expert analyses from early May suggest that a genuine trade truce between the US and China could meaningfully stabilize digital asset markets and restore investor confidence.
The bigger picture for digital assets
China’s broader push toward de-dollarization remains a wildcard. Beijing has been steadily working to reduce its dependence on the US dollar in international trade settlements. The regulatory divergence between the two countries adds another layer of complexity. The US has been moving toward a framework that, at least in principle, accommodates crypto innovation. China has maintained its restrictive stance on digital asset trading while simultaneously developing its central bank digital currency.
For investors, the practical takeaway is that trade policy has become a first-order variable for crypto portfolio management. A 145% tariff reshapes mining economics. A diplomatic handshake in Beijing can move billions in leveraged positions. And the difference between “balanced trade” and “system change” as a negotiating posture can determine whether the next quarter brings stability or another cascade of liquidations.
