China's Underground Bitcoin Mining Resurges to Top Global Rank

China’s 2021 ban on bitcoin mining was expected to end the nation’s dominance in the sector.

For a brief period, the country’s hashrate plummeted as mining farms shut down and operators relocated abroad. However, new data shows a remarkable resurgence.

China reclaims global mining status

By late 2025, China’s share of global bitcoin hashrate has quietly climbed back to between 14% and 20%, making it the world’s third-largest mining hub once again.

Much of this activity is concentrated in regions like Xinjiang and Sichuan, where cheap, abundant electricity persists.

Network estimates and industry reports confirm that new mining facilities are being built, and local operators are returning to the business.

A private miner from Xinjiang described the situation:

“A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining. New mining projects are under construction.”

Global bans struggle to stick

China is not alone in attempting—and failing—to enforce blanket bans on bitcoin mining.

Countries such as Russia, Zimbabwe, Bolivia, India, and Nigeria have all imposed bans at various times, only to lift or soften them after facing practical and economic challenges.

In most cases, governments shifted to regulation rather than prohibition as enforcement proved difficult.

Why the ban failed

China’s experience highlights several factors making mining bans ineffective.

Cheap and stranded electricity in remote regions like Xinjiang creates natural incentives for mining.

The portability of mining equipment allows operations to move or hide easily.

Despite regulatory hostility, bitcoin’s strong economic incentives and sustained global demand have encouraged miners to adapt and persist.

The return of underground mining in China is also reflected in the financial performance of ASIC hardware providers, with companies like Canaan reporting a sharp rise in sales to the Chinese market.