Perspective by: Joshua Chu, co-chair of the Hong Kong Web3 Association
China’s grip on cryptocurrency liquidity in Hong Kong grants it significant influence over the Trump family’s crypto assets. This control allows Beijing to shape the family’s financial prospects — and by extension, impact US-China relations — through market movements. As Eric Trump travels to Hong Kong, this interplay of crypto and politics heralds a new chapter in global power dynamics.
Cryptocurrency is no longer viewed merely as a fresh financial approach. Digital assets have evolved into potent geopolitical tools that can sway the destinies of nations.
As noted by Imran Khalid pointed out, “China, unlike the US, has opted for a long-term strategy. It has chosen dialogue over discord and principle over provocation.”
The rise of China and its increasing sway over the Web3 sector reflects its strategically crafted flexible liquidity management system through parallel measures in Hong Kong. This level of oversight combined with the Trump family’s escalating reliance on digital assets reveals a nuanced yet impactful influence that Beijing now exercises.
Surge in the Trump family’s crypto assets
During his initial presidency, US President Donald Trump criticized Bitcoin (BTC), dismissing it as “not money” and “grounded in nothing.” However, this stance shifted dramatically by 2025.
In a Fox News interview with Donald Trump Jr., he disclosed that the family “had no option” but to venture into crypto after banks declined to work with them following the January 6 “incident.” As a politically exposed person (PEP), this marked a noteworthy turnaround.
Financial institutions typically enforce stricter protocols when it comes to PEPs, as their visibility increases the likelihood of becoming targets for corruption and bribery, thereby heightening the risk of financial crime tied to illicit money laundering.Â
Since embracing crypto, the Trump family has sharply pivoted toward it as a primary avenue for personal wealth. In July, reports indicated that their crypto endeavors represented 40% of their $2.9 billion net worth.
These efforts encompass World Liberty Financial, which has successfully generated hundreds of millions of dollars through token offerings, including the TRUMP and MELANIA memecoins. Eric Trump’s engagement with American Bitcoin has further amplified the family’s crypto presence.
This level of crypto involvement is unprecedented among political families in the US, if not globally. It has further consolidated wealth into an asset class notorious for its extreme volatility, which is now deeply connected to Hong Kong’s licensed exchanges — pivotal in China’s crypto liquidity approach.
While this landscape introduces increased financial risks, it simultaneously grants China a decisive operational advantage.
China’s strategy for crypto liquidity
China’s plan to liquidate seized virtual assets via Hong Kong’s licensed exchanges transcends mere law enforcement; it’s a strategic maneuver within Beijing’s global crypto ambitions. This liquidity injection scheme, aligned with the LEAP Digital Assets Policy 2.0, aims to establish Hong Kong as the preeminent virtual asset hub that China can leverage as a market price determinant.
Related: China’s plans for crypto liquidation underscore its broader strategy
The term “national team” is prevalent in financial conversations in Hong Kong (and across greater Asia). This consortium comprises sovereign wealth funds and other state-supported entities whose assets reportedly exceed $1 trillion. Initially assembled in response to the 2015 market debacle, the national team injected $17 billion into the markets, credited with reducing risks by 30%-45% during its intervention.
Fast forward to 2025, and the national team illustrates that China’s intent to liquidate seized crypto assets isn’t just an “offloading” action. Entities like the national team are positioned to acquire any liquidated crypto, manipulating market supply and demand to stabilize, inflate, or deflate asset values as per Beijing’s needs.
China’s overarching strategy is adaptive and dynamic. This starkly contrasts with the US, which has adhered to a passive hodl-only reserve policy, lacking the agility to manage liquidity or effectively tackle price fluctuations.
Thus, China retains one of the rarest combinations: a substantial pool of liquidatable virtual assets and a national team operating beyond the boundaries of mainland China, with a sovereign wealth fund in Hong Kong boasting over $1 trillion prepared for action.
This dual capability provides China with an extraordinary means to regulate valuations, enabling it to raise, lower, or stabilize prices at will. With an increasing number of companies and nations adopting the Bitcoin treasury strategy, Beijing is poised to wield unprecedented influence over these entities.
Through Hong Kong, China has forged a critical tool to solidify the Trump family’s legacy—potentially propelling their wealth skyward or reducing them to the status of a beggar king should they stray.
US policy shifts toward China while applying pressure elsewhere
China’s multifaceted control over various aspects of the virtual asset market allows it to adeptly manage supply and demand (critical to crypto valuation) and pricing dynamics simultaneously, effectively commanding the crypto landscape instead of merely participating.
For instance, the Trump administration’s stringent actions against India for importing Russian oil stand in stark contrast to its lenience toward China, which is, as many journalists have pointed out, a significantly larger importer of Russian energy.
This selective pressure underscores China’s greater geopolitical leverage, seemingly focused on rare earth elements, but at its core, may also encompass financial influence over politically connected entities like the Trump family.
Eric Trump’s impending appearance at Hong Kong’s upcoming crypto conference symbolizes this crypto nexus. His attendance highlights the intimate ties between the First Family’s financial and political prospects and China’s strategic crypto marketplace.
Perspective by: Joshua Chu, co-chair of the Hong Kong Web3 Association.
This article serves informational purposes only and is not intended to be and should not be construed as legal or investment advice. The opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.
