Taiwan has intensified its technology export controls by blacklisting two of China’s foremost semiconductor companies, Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC), amid escalating tensions in the global tech sector. 

The updated Strategic High-Tech Commodities Entity List, released by Taiwan’s Ministry of Economic Affairs, now includes both firms along with several of their subsidiaries, requiring Taiwanese companies to obtain government approval before exporting any products to them. Neither Huawei nor SMIC issued an immediate response to their inclusion.

This move effectively cuts off Huawei and SMIC from accessing advanced semiconductor technologies produced in Taiwan, undermining their efforts to compete with major US chipmakers such as Nvidia. The decision comes as part of a broader strategy, aligned with US-led restrictions, to limit China’s advances in the chipmaking sector.

The complex geopolitical backdrop behind Taiwan

China asserts sovereignty over Taiwan and has threatened military action to achieve unification, while the US and most other countries do not recognize Taiwan as an independent state but oppose any forcible annexation and support Taiwan’s defensive capabilities.

New restrictions will further seal loopholes and reduce collaboration between Chinese firms and Taiwanese tech companies, compounding existing US export bans on mainland tech leaders and exacerbating the production challenges both Huawei and SMIC were already facing.

Both companies have been central to China’s push for self-sufficiency in semiconductor manufacturing, especially after the successful launch of a domestically developed 7-nanometer chip in Huawei’s Mate 60 smartphone line in 2023. This development prompted scrutiny in Washington about the effectiveness of existing sanctions. 

The US has also pressured Taiwan and its companies, including TSMC, the world’s largest contract chipmaker, to restrict access to advanced chipmaking technologies for mainland clients.

Semiconductor chips’ role in Bitcoin mining

Semiconductor chips are the backbone of crypto mining, particularly for Bitcoin. Mining relies heavily on specialized chips known as application-specific integrated circuits (ASICs), which are engineered to execute the complex cryptographic calculations required for mining with maximum efficiency. 

Bitcoin’s SHA-256 algorithm, for example, is processed most effectively by ASIC chips, which can perform trillions of calculations per second, far outpacing general-purpose CPUs or GPUs. This specialization allows miners to solve cryptographic puzzles faster and more efficiently, earning rewards for solving blocks and securing the blockchain. 

High-performance chips like these are crucial for maintaining profitability and competitiveness in the mining industry, especially as mining difficulty increases and energy costs rise.

Taiwan’s latest export controls further isolate China’s leading chipmakers from global technology supply chains, reinforcing the strategic importance of semiconductor production in both geopolitics and emerging industries like crypto mining and AI.

According to a Reuters market wrap, world stocks ended the week little‑changed as investors weighed a fresh U.S.–U.K. tariff deal and this weekend’s high‑stakes meeting between Washington and Beijing trade officials.

Stocks tread water on tariff suspense

MSCI’s all‑country equity index inched up just 0.11% to 846.80, trimming a 0.3% weekly loss. Europe’s STOXX 600 added 0.44%, while Germany’s DAX notched another record close.

On Wall Street, the Dow fell 0.29%, the S&P 500 slipped 0.07% and the Nasdaq eked out a fractional gain. Weekly tallies were negative across the board, mirroring broader caution highlighted by the Wall Street Journal as traders braced for new tariff headlines.

Dollar eases while Treasury yields hover

The U.S. Dollar Index slipped 0.28% to 100.37, even as it preserved a weekly advance versus the yen, euro and Swiss franc. Benchmark 10‑year Treasury yields crept up to 4.386%, while the 2‑year note eased to 3.887%.

For additional context on how rising yields ripple through crypto markets, see CryptoSlate’s recent analysis on Treasury yield volatility.

Bitcoin and Ethereum extend gains

Risk appetite rotated toward digital assets, with Bitcoin climbing 0.58% to $103,224—its highest since January—marking a fourth‑straight daily advance. Ether rallied 6.7% to $2,493. Traders cited lingering uncertainty in traditional assets and optimism about eventual rate cuts.

For longer‑term perspectives, CryptoSlate’s feature on Bitcoin price projections through 2025 offers added insight.

Oil and gold catch a bid

• WTI crude settled at $61.02 (+1.85%)
• Brent closed at $63.91 (+1.7%)
• Spot gold firmed 0.67% to $3,327.53 per oz

Both commodities benefited from a softer dollar and hopes that any thaw in trade tensions could bolster demand.

Outlook

All eyes now turn to Saturday’s Geneva summit between U.S. Treasury Secretary Scott Bessent and China’s Vice‑Premier. While analysts doubt a breakthrough, even incremental signs of progress could set the tone for global risk assets—and by extension, crypto—into next week’s U.S. CPI release and the mid‑May Federal Reserve minutes.

Bitcoin surged to a high of nearly $95,000 following President Donald Trump’s announcement of a crypto strategic reserve during the weekend.

However, the gains quickly evaporated as escalating trade tensions between the US and key partners, including China, Canada, and Mexico, triggered a sharp market downturn.

As a result, traders speculating on the crypto market saw losses amounting to $975.65 million during the past day, according to Coinglass data.

US trade war

On March 3, Trump raised tariffs on Chinese imports from 10% to 20%, confirming a 25% duty on goods from Mexico and Canada. The decision rattled investors, fueling a sell-off in stocks and cryptocurrencies.

China reportedly responded with higher tariffs on US agricultural goods, raising duties by 10% to 15% while restricting investments from 25 American firms.

Canada also followed suit, imposing immediate tariffs on $30 billion worth of US products. By March 25, the country planned to expand tariffs by an additional $125 billion, deepening market uncertainty.

Crypto market nosedives

The crypto market reacted sharply to the news, with Bitcoin plunging 10% to $83,577, according to CryptoSlate data.

The altcoins tied to Trump’s crypto reserve initiative—including Ethereum, Cardano’s ADA, XRP, and Solana’s SOL—saw double-digit losses, with some dropping as much as 17%.

Vincent Liu, the CIO of crypto investment firm Kronos Research, told CryptoSlate that the tariff escalations had shaken investor confidence and sparked a steep crypto sell-off.

According to Liu, Bitcoin’s retreat to $83,000 and deeper losses in altcoins underlined the market’s growing sensitivity to macroeconomic shifts.

Meanwhile, analysts at The Kobeissi Letter noted that the market wiped out $500 billion in value over the past 24 hours, leaving the total crypto market cap $100 billion lower than before the crypto reserve announcement on March 2.

The firm attributed the decline to the global shift toward risk-off assets as trade war concerns fueled broader economic uncertainty. It added:

“The reality is that crypto is now viewed as a risky asset. Take a look at the sharp divergence between Gold and Bitcoin in their YTD performance. While gold prices are up +10%, Bitcoin is down -10% since January 1st. Crypto is no longer viewed as a safe haven play.”

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