China is again a key Bitcoin mining hub, reclaiming up to 20% of global activity after a nationwide ban in 2021.
- China now ranks third in global Bitcoin mining activity.
- Surplus energy and underused data centers drive the resurgence.
- Beijing is easing its stance on digital assets through cautious regulation.
Mining Returns to China
Bitcoin mining in China is growing again, even though it was banned in 2021. That year, the government said mining used too much energy and carried financial risks. Factories shut down or moved to other countries. Still, global mining kept rising, as other regions like the U.S. and Kazakhstan took over.
Now, small and less visible mining operations are running again in China. Reports from CryptoQuant show China may account for 15% to 20% of global Bitcoin mining. This makes China the third-largest mining country, behind the U.S. and Kazakhstan.
Why Mining Returned
Several reasons explain the rebound. Many regions in China, like Xinjiang and Sichuan, generate more power than they use. This unused energy comes from coal, wind, and hydropower. It’s cheap and perfect for powering Bitcoin mining machines.
In addition, local governments built large data centers expecting tech growth. But actual demand was lower than expected. These centers now rent out space and power to miners. Also, rising Bitcoin prices in 2024 and 2025 have made mining more profitable.
What It Means for Bitcoin
Equipment sales from Canaan, a top mining rig producer, also suggest mining is strong. In 2022, only 2.8% of their revenue came from China. In 2025, it surged past 50% in one quarter. That confirms rapid growth in the country’s mining activity.
Most of this activity is now in western provinces with energy surpluses. Areas like Sichuan have cheap hydropower, while Xinjiang has coal and wind power. These places are key to China’s mining comeback.
A New Policy Direction
China’s policy is also changing. The government is not accepting all crypto, but its approach is more flexible. In Hong Kong, a stablecoin licensing system started in 2025. Meanwhile, the mainland is testing yuan-backed stablecoins and expanding its digital yuan, called e-CNY. These steps point to a controlled interest in digital assets.
This shift offers a signal: China may allow some digital activities if they help financial goals or national interests.
Source: cointelegraph.com
