Supplier Linked to Huawei and Chinese Military Successfully Enters US Supply Chain Through Third-Party

Supplier Linked to Huawei and Chinese Military Successfully Enters US Supply Chain Through Third-Party

Summary:
Sichuan Chuanrun Co., Ltd., a Chinese company linked with Huawei and military enterprises, has reportedly infiltrated the supply chain of a US-listed company, Riot Platforms, by leveraging a third-party startup, Hash House. Despite their appearances, the two companies seem interconnected, which might expose US buyers to potential political risks.

Key Takeaways:

Sichuan Chuanrun Co., Ltd. has delivered over 200MW of liquid cooling systems to the North American market.
The products supplied by Hash House and Chuanrun show significant similarities in design and technical specifications.
Chuanrun is a major supplier for Huawei, providing 40% of its liquid cooling market share.
Speculation indicates that Hash House serves as a cover for Chuanrun to enter the US market amidst heightened trade tensions.
This connection may open US companies to political risks associated with collaborating with a firm that has military ties.

Sichuan Chuanrun and Its Delivery Milestone

Sichuan Chuanrun Co., Ltd. (002272.SZ) has recently reported in its 2025 interim financial results that it has supplied over 200MW of liquid cooling systems to the North American market. Intriguingly, this figure aligns perfectly with the amount claimed by the Chinese company Hash House as the supply to Riot Platforms (Nasdaq: RIOT).

Product Introduction on Sichuan Chuanrun Co., Ltd.’s Official Website

Product Introduction on Hash House’s Official Website

Product Similarities Raise Questions

A detailed examination of the liquid-cooled containers showcased in Hash House’s marketing materials alongside those presented on Chuanrun’s official platform has uncovered remarkable similarities in their design, appearance, and specifications.

Hash House

Screenshots from Hash House’s social media and images in Chuanrun’s press

Additionally, the production environments depicted in Hash House’s promotional video are identical to those seen in Chuanrun Co., Ltd.’s facilities.

Chuanrun’s Strategic Partnerships

Chuanrun is recognized as an influential supplier of liquid cooling technology in China, boasting a comprehensive production base and expertise. It offers its services to major players like Huawei and various Chinese military enterprises. As a strategic partner of Huawei, Chuanrun plays a critical role in supplying liquid cooling solutions for their Ascend servers, which account for 40% of Huawei's market share. Forecasts suggest that orders from Huawei for 2025 might surpass 2 billion RMB. It is noteworthy that Chuanrun has recently become the exclusive provider for the CM384 ultra-node.

Furthermore, since September 2019, one of Chuanrun’s wholly-owned subsidiaries has begun collaborating on projects with Chinese military enterprises. In contrast, Hash House positions itself as a startup focused on liquid cooling technology, and there is no disclosed equity relationship between Hash House and Chuanrun, based on publicly available corporate records.

Industry Speculations and Political Risks

Chinese media have raised concerns regarding the implications of this relationship, especially given the ongoing China-US trade tensions. They speculate that this Chinese listed company, which has notable links to Huawei and military suppliers, is ingeniously utilizing an ostensibly unrelated third-party company to gain access to the US market. This tactic seems designed to evade compliance scrutiny, which could potentially expose unsuspecting US clients to considerable political dangers.