Bitcoin Mining in China Rebounds, Defying 2021 Ban

Bitcoin mining in China has staged a significant resurgence, with the country reclaiming its position as the third-largest contributor to the global Bitcoin hash rate. As of the end of October 2025, China’s share stands at approximately 14 percent of the worldwide Bitcoin mining capacity. This marks a notable comeback from near-zero levels following the nationwide ban enacted in September 2021 by China’s State Council, which cited concerns over financial risks and energy consumption. Independent estimates from CryptoQuant place the figure even higher, at 15 to 20 percent.

The mining resurgence is concentrated in energy-rich provinces such as Xinjiang and Sichuan, where miners exploit abundant, low-cost electricity from hydroelectric and coal sources. Much of this power is surplus and cannot be efficiently transmitted to other regions, creating an electricity glut exacerbated by over-investment in local data centers. These factors, combined with surging Bitcoin prices that enhance profitability, have encouraged both individual and corporate miners to operate discreetly.

Drivers Behind the Mining Resurgence

Several elements fuel this rebound in Bitcoin mining in China. High Bitcoin values have made the activity lucrative again, while U.S. tariffs on imported mining equipment have shifted sales dynamics. Additionally, subtle policy shifts in Beijing suggest a nuanced view of cryptocurrencies amid escalating rivalry with the United States. Officials increasingly see digital assets as strategic tools, even as the formal ban remains intact. For instance, Hong Kong, a special administrative region, implemented a stablecoin regulatory framework effective August 1, 2025, and discussions around yuan-backed stablecoins emerged in the same month.

Enforcement of the China crypto ban appears flexible in certain areas, particularly where economic incentives are strong. Legal experts note that completely suppressing such profitable operations is challenging, and activities often stay within regulatory bounds by avoiding overt violations. No official reversal of the ban has occurred, as confirmed by ongoing prohibitions under People’s Republic of China law.

Evidence from Mining Equipment Sales

Sales data from Canaan Inc, a leading Bitcoin mining rig manufacturer listed on Nasdaq, displays the trend. The company’s revenue from China rose from 2.8 percent in 2022 to 30.3 percent in 2024, according to its filings. In the second quarter of 2025, this share exceeded 50 percent. Canaan’s overall revenues for the first half of 2025 reflect strong growth, with total figures reaching $183 million, up from prior periods.

Global Implications for Bitcoin Hash Rate

China’s return diversifies the global mining share, potentially bolstering Bitcoin network security by reducing concentration in the United States, which holds about 40 percent. This development highlights the resilience of Bitcoin mining, which migrates to areas with cheap electricity regardless of borders. However, it raises questions about energy use and regulatory consistency in China.

As of November 24, 2025, Bitcoin’s price hovers around recent dips, but the hash rate remains robust at over 1,000 exahashes per second. Observers watch for further policy signals from Beijing, which could influence the trajectory of this mining resurgence. The trend underscores how economic forces can outpace regulatory hurdles in the crypto space.