Bitcoin mining resurged in China despite a 2021 ban. It now accounts for 14% of global hashrate, ranking third, driven by cheap energy.
Bitcoin mining has quietly resurfaced in China as miners exploit cheap electricity in surplus-energy regions. Despite a ban in 2021, activity has spread in Xinjiang and Sichuan. Reuters reports that China now accounts for about 14% of global hashrate, which puts them in third place globally. This unexpected rebound represents a shift of significant proportions in the dynamics of mining.
China’s Bitcoin Mining Resurgence Defies 2021 Ban
Miners have once again appeared in low-cost, energy-surplus areas. These are Xinjiang and Sichuan. New facilities are in the process of being built there. CryptoQuant comes up with a significant number. Between 15% – 20% of Bitcoin mining worldwide may currently come from China.
After a 2021 ban, Bitcoin mining has returned to China. Now it controls about 14% of the world’s hashrate. This is as of October and November of 2025. The resurgence has been explained mainly by low electricity costs. Surplus energy in areas such as Xinjiang and Sichuan also helps.
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Bitcoin mining has resurrected silently in China. This is despite a nationwide ban in 2021. China, which was once the world leader, was pushed offshore. Strict measures were imposed by the regulators.
However, China has risen to be back up. It is now the third-largest mining region in the world. According to Hashrate Index, China now has 14% global Bitcoin hashrate. This is as of late October. It had earlier declined to 0% after the crackdown.
On-the-ground reporting suggests a consistent trend. Miners are returning to energy rich provinces. Examples are Xinjiang and Sichuan. Plentiful, cheap and surplus electricity is available there. Miners confirm that new facilities are being built. Activity is motivated by excess local power. This power is not efficiently exportable. Industry reports put the contribution at. Miners may now be producing as much as 15% – 20% of global production.
The resurgence of mining is consistent with the surge in Bitcoin. It has reached record levels in October. Although the cryptocurrency is still falling around one-third from that peak, higher prices have increased mining incentives.
Economic Incentives and Policy Flexibility Drive Comeback
Analysts say U.S. President Donald Trump’s pro-crypto political change is also a boost to profitability. Growing skepticism towards the dollar plays a part as well.
Sales data support this trend. Mining rig manufacturer Canaan Inc. came out with a pretty large number. 30.3% of the company’s global revenue came from China last year. This is in contrast with 2.8% the year after ban.
Internal figures indicate that China contributed more than 50% of the revenue of Canaan. This was during the second quarter of this year. Rising bitcoin prices contributed to this. U.S. tariff uncertainty contributed to this. Increased domestic demand was a factor.
Despite the resurge, China is yet to officially ease its restrictions. However, experts say regional economic incentives are flexible. Policy flexibility allows for mining to proceed in a quiet manner
Some miners who left the industry after 2021 have now reported a return. Peers have come back. They benefit from local electricity gluts. These had been created by heavy investment. This went into data centers infrastructure.
Overall, China’s return to mining looks influenced by cheap power. Renewed profitability is also important. Subtle changes in policies contribute a lot. This makes it one of the most important developments. It affects the global Bitcoin mining scene this year.
While mining is still officially banned, analysts note there is a difficulty. It is difficult to bring such a lucrative enterprise to a complete stop. Despite challenges in regulation, Chinese companies still dominate the mining hardware market. This also has the advantage of maintaining the country’s influence in the sector.