Addentax CEO, Hong Zhida, recently announced the company’s strategic move towards blockchain technology to support potential acquisitions of digital assets such as Bitcoin. This initiative aims to introduce strategic investors with crypto ecosystem experience and establish a stable component of long-term ownership for the company, considering the liquidity and increasing institutional interest in recent years.
While the announcement sounds promising, the market response has been skeptical. Addentax’s stocks plummeted over 8% after the announcement, reflecting investor concerns about this business shift. Beyond investment implications, Addentax’s move has also sparked political speculation. Operating in the cross-border logistics sector previously affected by U.S.-China trade tensions, especially during the Donald Trump era, the company’s purchase of Trump-themed tokens raises suspicions about Chinese companies exploring crypto as a means of political alignment or regulatory risk mitigation.
The recent purchase of $20 million worth of TRUMP tokens by another logistics company two weeks prior further fuels rumors of interconnected business and geopolitical strategies. Meanwhile, the global crypto market is on the rise following announcements from the U.S. and China regarding reduced trade tariffs. U.S. import tariffs on Chinese goods have been slashed from 145% to 30%, while China has reduced tariffs from 125% to 10, signaling a positive shift in international trade dynamics.
Overall, Addentax’s foray into blockchain technology and digital assets reflects a strategic move towards long-term stability and growth amidst evolving market conditions, political uncertainties, and changing global trade landscapes.
