China’s Mining Comeback
China is officially a no-crypto zone, but real-world activity tells a different story. Four years after the government banned all crypto trading and mining, the country has roared back to become the third-largest Bitcoin mining hub, now controlling 14% of global hashrate.
Mining hubs like Xinjiang and Sichuan are buzzing again, powered by ultra-cheap, surplus electricity that local grid operators can’t export.
Even as Beijing maintains the ban on paper, local enforcement is fading, and operations are expanding rapidly.
Cheap Power Fuels the Resurgence
For miners, it all comes down to one thing: electricity prices. Miners in the region say new facilities are already under construction, driven by the same economics that made China the world’s mining capital before 2021.
Some Chinese cities reportedly overbuilt data centers during past tech booms, leaving racks of idle servers. Those unused resources are now flowing into mining instead.
Even with Bitcoin slipping from its late-2025 highs, the domestic mining payoff remains profitable, thanks to China’s uniquely low energy costs.
Hardware Sales Reveal Surging Domestic Demand
Mining hardware tells the story even more clearly. Canaan - one of the world’s largest mining rig manufacturers - saw its revenue share from China explode to 30.3% last year, up from just 2.8% in 2022.
In Q2 2025, more than half of its revenue reportedly came from China, signaling intense demand from miners.
Regulatory Silence Suggests a Shift
Although Beijing hasn’t formally changed its stance, recent moves hint at a softening approach. Hong Kong introduced its own stablecoin regulatory framework, signaling comfort with certain types of digital assets.
Meanwhile, Chinese officials have quietly explored yuan-backed stablecoins as part of broader monetary strategy - a move widely interpreted as a pushback against U.S. dollar stablecoin dominance.
Local Economics Are Overpowering National Policy
What’s happening now is classic China: official prohibition, unofficial tolerance. Mining is thriving not because the government changed its mind, but because regional economic incentives outweigh political restrictions.
