Bitcoin Mining Resurges in China Despite 2021 Ban
China’s Bitcoin mining sector is making a quiet but significant comeback, defying the government’s 2021 ban on cryptocurrency mining activities. According to recent data from industry trackers like Hashrate Index and Luxor, China now accounts for approximately 14% of the global Bitcoin hashrate, positioning the country as the world’s third-largest mining hub behind the United States and Russia.
Underground Operations and Regional Growth
Despite strict regulations and ongoing government efforts to suppress digital asset activities, mining operations have continued underground, particularly in regions with access to cheap and abundant energy. Xinjiang and Sichuan provinces are leading the resurgence, with their remote locations and surplus electricity making them attractive for both individual and corporate miners. Multiple ASIC supply chain sources confirm that large-scale mining operations have quietly resumed in these areas.
Industry insiders estimate that China’s share of global hashrate could be as high as 15% to 20%, according to CryptoQuant. This resurgence is fueled by the persistent demand for low-cost electricity, which remains a critical factor for profitable mining operations. Several new mining projects are reportedly under construction, with operators emphasizing the importance of energy efficiency and cost optimization.
Historical Context and Regulatory Challenges
China was once the dominant force in Bitcoin mining, with its share of global hashrate peaking at over 75% in 2019. However, a series of regulatory crackdowns, culminating in the nationwide ban in June 2021, led to a mass exodus of mining companies to countries like Kazakhstan, Russia, and the United States. The ban was motivated by concerns over energy consumption and financial stability.
Despite the ban, mining never fully disappeared from China. Instead, operations went underground, with miners adapting to new regulatory realities and continuing to contribute to the global Bitcoin network. The latest data suggests that China’s mining sector is not only surviving but regaining momentum, even as the government maintains its official stance against cryptocurrency activities.
Global Impact and Market Trends
The resurgence of mining in China has broader implications for the global Bitcoin ecosystem. A rising hashrate typically signals increased confidence in Bitcoin’s long-term profitability and network security. As of late 2025, the global Bitcoin hashrate stands at over 1,137 EH/s, reflecting robust miner participation and heightened network resilience.
Meanwhile, Bitcoin’s price has also shown signs of strength, trading near $111,000 as of late November 2025. This price action, coupled with the rebound in mining activity, suggests that miners remain optimistic about the future of the cryptocurrency market.
Outlook and Future Prospects
While China’s mining sector continues to operate in a regulatory gray area, its ability to reclaim a significant share of the global hashrate underscores the resilience and adaptability of the industry. As long as cheap energy remains available and demand for Bitcoin persists, mining operations in China are likely to persist and potentially expand further.
However, the sector remains vulnerable to future regulatory crackdowns and policy shifts. The ongoing tension between government oversight and the underground mining economy will continue to shape the trajectory of Bitcoin mining in China in the years ahead.
For now, China’s quiet return to the global mining stage is a testament to the enduring appeal of Bitcoin and the ingenuity of miners navigating a complex regulatory landscape.