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Bitcoin mining has quietly rebounded in China to claim 14% of global hashrate, making it the world’s third-largest mining hub just three years after Beijing imposed a sweeping ban on the industry.
The resurgence, documented by Hashrate Index and reflected in surging equipment sales from manufacturer Canaan, demonstrates how cheap electricity in remote provinces and powerful profit incentives are undermining enforcement of the 2021 crackdown.
Fresh data from Hashrate Index shows Bitcoin mining in China climbing back to the third-largest share worldwide, with 14% of global participation recorded at the end of October. The rebound of Bitcoin mining in China follows a near-total collapse after the 2021 ban drove miners abroad.
The resurgence has been reinforced by rig maker Canaan’s sharply recovering sales inside the country. According to company filings, Canaan generated 30.3% of its global revenue in China last year, up from just 2.8% in 2022. The company attributed this increase to tariff uncertainty in the United States, which disrupted sales, and rising Bitcoin prices that made mining more lucrative.
Industry participants say the return of Bitcoin mining in China is tied to a powerful mix of cheap energy, under-used data centers, and local economies seeking new revenue streams.
Wang, a private miner operating in Xinjiang, described the appeal of the region’s abundant yet stranded energy supply:
“A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining,” — Wang, private miner in Xinjiang. He added, “What I can say is that people mine where electricity is cheap.”
Hashrate Index’s findings and Canaan’s sales data collectively suggest that Bitcoin mining in China is not only recovering but evolving—concentrated increasingly in hinterlands rich in power but limited in industrial demand.
Beijing’s 2021 crackdown forced thousands of miners to relocate to North America and Central Asia. Yet the return of Bitcoin mining in China coincides with a global spike in cryptocurrency interest.
Bitcoin reached record highs in October amid pro-crypto policies in the United States and growing hedging behavior among investors concerned about the dollar.
Patrick Gruhn, CEO of Perpetuals.com, noted that shifting economic conditions often reshape China’s policy calculations:
“Chinese policy flexibility emerges when economic incentives are strong in specific regions,” — Patrick Gruhn, CEO, Perpetuals.com.
He added that “the resurgence of mining activity in China is one of the most important signals the market has seen in years.”
Though Beijing has not formally lifted restrictions, Bitcoin mining in China continues in remote provinces with abundant power, such as Xinjiang and Sichuan. The practice benefits from over-investment in data center infrastructure in certain regions, leaving excess computing capability available for miners.
Several miners report that the business remains sensitive, but demand is undeniable. Sichuan-based miner Duke Huang said “people who get cheap electricity are still mining.”
While the core ban on Bitcoin mining in China remains unchanged, regulators have taken steps that analysts interpret as softening. One sign is Hong Kong’s stablecoin bill, which took effect in August, positioning the city to compete with the United States in developing regulated fiat-backed digital currencies.
Reuters previously reported that China was examining yuan-backed stablecoins to enhance global currency adoption and counter U.S. leadership in digital stablecoin frameworks. These developments have created speculation that long-term attitudes toward Bitcoin mining in China may evolve as economic priorities shift.
Rig maker Canaan emphasized that its operations remain in line with regulations, stating:
“In China, the R&D, manufacturing, and sale of mining machines are permitted,” — Canaan, in an emailed statement.
Blockchain analytics firm CryptoQuant estimates that 15%–20% of global mining capacity continues to operate inside China, despite the official ban.
“Bitcoin mining in China is still officially banned in China. However, there continues to be significant capacity operating,” said Julio Moreno, head of research at CryptoQuant.
Liu Honglin, founder of Man Kun Law Firm, added that profitable industries are inherently difficult to extinguish:
“I personally think government policies against mining will be gradually loosened, because you simply cannot stop such activities completely.”
The persistence of Bitcoin mining in China signals not only the industry’s adaptability but also China’s complex balancing act between regulation and economic opportunity.
