Key Takeaway:
China’s share of global Bitcoin mining has quietly rebounded to about 14% in 2025, despite the 2021 nationwide ban and ongoing official restrictions, as underground operators exploit cheap surplus electricity, unused data center capacity, and uneven regional enforcement to restore the country’s position as the world’s third‑largest mining hub.
Underground Mining Surges in China
China Bitcoin mining industry is thriving again, even after a strict government ban in 2021 which forced miners to close or go underground. According to fresh data in November 2025, China now ranks as the world’s third-largest Bitcoin mining hub, holding about 14% of the global hashrate. This marks a resilient comeback, with operations concentrated in provinces offering cheap electricity and excess computing capacity.
How Miners Are Dodging the Ban
Much of the mining activity has shifted to remote energy-rich regions such as Xinjiang and Sichuan. Here, miners exploit cheap and often unutilized electricity, making underground mining lucrative. Miners operate in secrecy, often disguising their activities as legitimate data processing businesses or splitting their mining loads across smaller locations to avoid detection.
One Xinjiang miner told Reuters: “So much energy here can’t be exported, so crypto mining is the only way to use it profitably.” This sentiment is echoed by many, as local governments with surplus power quietly tolerate these activities for the economic benefits they bring.
Explosive Growth in Mining Equipment Sales
The rebound is evident in hardware sales. Canaan Inc., a top global Bitcoin mining machine maker, reported that China generated over 30% of its global revenues in 2024—a sharp rise from 2.8% in 2022. By mid-2025, sales to China made up more than half of the company’s shipments, a sign that the ban is no longer holding miners back.
Canaan said its actions comply with Chinese regulations, noting that “the research, development, manufacturing, and sale of mining machines are permitted”—even if actual mining remains technically banned.
Local Authorities’ Turning a Blind Eye
The enforcement of the ban varies. While central authorities issue firm warnings, local power providers and officials often look the other way—especially in regions suffering from data center overcapacity or looking to monetize otherwise wasted energy. Economic incentives are simply too strong: keeping mining alive sustains jobs and brings revenue to these localities.
Legal experts and industry insiders believe a gradual relaxation of policy may occur. “Eradicating a profitable industry like mining is nearly impossible,” says Liu Honglin, a Chinese law firm founder. This view is gaining ground as mining quietly returns as a regional economic pillar.
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The Global Backdrop and Bitcoin’s Price Swings
China’s mining resurgence comes as Bitcoin hit a record high above $126,000 in October 2025, only to tumble below $87,000 by late November amid global crypto market volatility. Still, cheap power in China keeps mining profitable for many local operators, even as miners elsewhere shut down less efficient machines.
The global industry remains competitive. The United States currently leads with nearly 38% of the world’s hashrate, followed by Russia (just over 15%). China’s 14% share demonstrates just how quickly the country has reclaimed ground once lost, even with the ban in place.
Environmental and Regulatory Concerns Persist
With the revival comes renewed scrutiny over the environmental impact. Although a growing share of mining uses hydroelectric power, much is still based in coal-heavy provinces like Xinjiang. The government remains wary of mining’s carbon footprint and risks to financial stability.
At the same time, some analysts warn that the concentration of mining power among just three nations—the U.S., Russia, and China—presents new centralization risks for Bitcoin . This clustering could affect the security of the network if regulatory crackdowns were coordinated across these jurisdictions.
Subtle Policy Shifts and Future Outlook
China’s revived mining coincides with policy moves such as Hong Kong’s new stablecoin licensing regime, launched in August 2025, signaling the country’s interest in keeping up with crypto innovation. Some experts see hints that Beijing may soften its stance on digital assets, citing economic benefits and competitive pressures from the United States.
For now, Chinese miners appear confident that, in regions where mining provides economic value, the rules will be interpreted loosely. China’s old dominance—fueled by abundant hardware, cheap power, and regulatory ambiguity—may be returning, albeit in the shadows.
Source: Reuters
