Relations between the US and China reached a new low this week as the former announced a rather dramatic rise in tariffs on $18 billion worth of Chinese imported goods.
The steep surge in tariffs includes a 100% border tax on imported electric vehicles from China. Other Chinese imported commodities, ranging from Steel and Aluminum to EV Batteries and Computer chips to medical supplies, will also face steep tariffs, as per a decision taken by the US government, which it claims is a “retaliatory step” against China’s “unfair” trade policies.
According to Reuters, US President Joe Biden said in a speech at the White House, “American workers can outwork and outcompete anyone as long as the competition is fair, but for too long, it hasn’t been fair. We are not going to let China flood our market (sic).”
The Chinese government also rebuked its US counterpart and vowed “resolute measures” to protect its interests.
Amid the ongoing fraught situation between the US and China, another development related to the crypto ecosystem has occurred. The US recently booted out a Chinese Mining company that had set its base “too close” to a nuclear facility in Wyoming, USA.
According to news reports, a Chinese-owned cryptocurrency mining company, MineOne Partners, had acquired land close to Francis E Warren Air Force Base in Wyoming, which houses US intercontinental ballistic missiles (ICBMs).
The issue had snowballed into a national security debate after allegations of a Chinese mining company being a decoy for spying turned up.
Cryptocurrency mining is the process of using computers to solve complex puzzles to verify cryptocurrency transactions and earn rewards. Because mining requires huge power consumption and heavy infrastructure, it is usually carried out by companies rather than individuals.
The US government has taken a decisive step, forcing the Chinese company to sell the land.
What Happened Near Wyoming US Air Base?
In June 2022, MineOne acquired a plot of land located in close proximity to a critical US military installation. This land, a mere 1.6 kilometers (less than a mile) away from Francis E. Warren Air Force Base in Wyoming, raised eyebrows due to the base’s strategic importance.
Francis E. Warren Air Force Base is not just any military facility; it serves as a vital component of the US national defense system. The base houses a significant arsenal of intercontinental ballistic missiles (ICBMs), which are nuclear-tipped missiles capable of reaching targets across vast distances.
ICBMs are a critical component of the US nuclear deterrent strategy. These missiles can deliver nuclear warheads to targets across vast distances. The security of these weapons and the facilities housing them is paramount to national security. Any potential compromise of information regarding ICBMs or the base’s operations could have devastating consequences.
Who tipped off US Authorities?
Following the land purchase in 2022, MineOne proceeded to equip the property with specialized machinery for cryptocurrency mining operations. However, a crucial step was neglected. The US government’s Committee on Foreign Investment (CFIUS), which examines foreign investment deals for possible national security risks, was not notified of the transaction. This lack of transparency heightened concerns.
Fortunately, the deal did not go unnoticed. A member of the public, likely recognizing the sensitivity of the location, submitted a tip last year that triggered an investigation by US authorities. This tip-off proved invaluable, as the investigation ultimately revealed significant national security risks associated with the land purchase by MineOne Partners.
The US government’s stance on the situation is clear: the proximity of the land owned by MineOne Partners to Francis E. Warren Air Force Base poses a significant national security threat. The White House issued a strong statement outlining these concerns.
Repercussions And Broader Context
The US government issued an order compelling MineOne Partners to sell the land within a strict timeframe of 120 days. This swift action demonstrates the seriousness with which the US views the potential threat.
This episode is not an isolated event. US lawmakers have expressed growing concern over a trend of Chinese companies purchasing land in close proximity to sensitive US military facilities. These concerns extend beyond cryptocurrency mining and encompass a broader unease about potential Chinese attempts to gather intelligence or disrupt US military operations.
Conclusion
Trade relations between the US and China have already soured due to the new tariff controversy. Now, the ouster of a crypto mining company from the USA clearly shows the power tussle between the West and East superpowers. Looking ahead, this incident is likely to have a lasting impact on foreign investment near sensitive US military facilities. One can expect stricter scrutiny and heightened awareness of potential national security risks associated with such deals.
Tesler GPT offers more information and insights for those interested in trade signals and staying informed on similar developments.
