Bitcoin mining is experiencing an unexpected resurgence in China despite the national ban announced in 2021, with new data suggesting the country now contributes approximately 14% of the global hashrate, according to reporting from Reuters.
The renewed activity indicates that China remains a significant player in the global Bitcoin mining ecosystem even after regulatory pressure forced major mining firms to relocate three years ago.
Reuters’ report highlights that a combination of covert operations, distributed small-scale mining setups and improved access to surplus electricity in specific regions has allowed China to regain substantial influence in the Bitcoin mining landscape.
While official policy still prohibits large-scale industrial mining, the persistence of decentralized, private, or hidden operations has enabled China to reclaim a measurable share of the worldwide mining network.
This resurgence reflects the resilience of mining activity within China, where operators continue to adapt to regulatory constraints by decentralizing their operations and leveraging more discreet energy sources.
Industry analysts observe that although China is far from its peak when it once commanded over 65% of the global hashrate the return to a 14% share signals that the country’s mining infrastructure and technical expertise were never fully eliminated.
The report underscores that China’s energy dynamics play a major role in this renewed mining activity. Provinces with surplus hydropower and seasonal energy gluts have historically been hubs for miners seeking low-cost electricity. Localized excess energy, combined with incentives for load balancing, may be contributing to the revival of smaller mining clusters. These operations often function “under the radar,” blending into broader industrial power usage patterns.
Market observers are closely watching how China’s rising hashrate share will influence global mining competition. With countries such as the United States, Kazakhstan, and Russia still acting as dominant mining centers, the re-emergence of China adds another layer of complexity to the global mining distribution landscape.
Analysts note that China’s increase may influence network difficulty adjustments, miner revenue distribution and geopolitical considerations surrounding Bitcoin’s energy footprint.
Despite the regulatory environment, miners in China appear motivated by profitability linked to Bitcoin’s current market levels and the growing institutional interest in digital assets. Even with stricter oversight, the decentralized nature of mining rigs allows them to be hosted in residential, rural, and light industrial settings, making detection more challenging.
Additionally, the rising sophistication of mining hardware has lowered the barrier for smaller operators to remain competitive under constrained circumstances.
The renewed domestic mining activity is also fueling broader discussions within the crypto community about the long-term role of China in Bitcoin’s ecosystem. Some experts argue that China’s technical expertise and manufacturing dominance in mining equipment ensure its ongoing influence. Others caution that regulatory tightening could reduce the country’s share again if authorities decide to escalate enforcement.
For now, the updated hashrate estimate demonstrates that Bitcoin mining in China remains active and economically significant, even without formal recognition or legal standing. The resilience of the country’s miners reinforces the decentralized and globally distributed nature of the Bitcoin network, where activity continues to evolve despite political or regulatory obstacles.
As global hashrate continues to climb, the Beijing-mandated ban appears to have slowed but not eliminated the country’s mining presence. The return to a 14% share signals that Bitcoin’s mining landscape remains dynamic, adaptive and far more geographically diverse than many policy analysts predicted at the time of the ban.
FAQs
Q1: What percentage of global Bitcoin hashrate does China now hold?
China currently accounts for roughly 14% of global Bitcoin mining activity.
Q2: How is China mining Bitcoin if mining was banned?
Much of the activity is occurring covertly through decentralized, small-scale operations that are harder for authorities to detect.
Q3: What triggered the resurgence of mining in China?
Profitability, access to surplus energy, and the resilience of local miners have contributed to renewed activity.
Q4: Does China’s mining growth affect global Bitcoin security?
China’s activity contributes to overall network decentralization, though its share is far smaller than pre-ban levels.
Q5: Could increased enforcement reduce China’s mining share again?
Yes. Stricter policing could force miners to shut down or relocate, as seen in 2021.
Q6: How does China’s current hashrate compare to its peak?
China once controlled over 65% of the global hashrate; today’s 14% reflects both a decline and a notable recovery.