In a striking defiance of a nationwide ban, Bitcoin mining in China has not only persisted but has staged a remarkable resurgence, with its share of the global network hashrate growing approximately tenfold since the government’s 2021 crackdown. Recent data reveals that Chinese miners now command a staggering 14% of the world’s Bitcoin mining power, signaling a complex and clandestine revival of an industry once thought to be eradicated within its borders.

According to a Reuters report citing analysis from Hashrate Index, this resurgence points to a significant gap between official policy and on-the-ground enforcement. The Chinese government initially outlawed cryptocurrency mining and trading four years ago, citing risks to financial stability and its ambitious carbon neutrality goals.

The Data Behind the Comeback: Mining Hardware Sales Don’t Lie

The most compelling evidence of this revival comes from the financial reports of major mining hardware manufacturers. Canaan Creative, a global leader in producing Application-Specific Integrated Circuit (ASIC) miners, reported that a mere 2.8% of its revenue came from China in the immediate aftermath of the ban. By 2024, that figure had skyrocketed to 30.3% of its global revenue—a clear indicator of robust, renewed demand.

Even more tellingly, anonymous sources suggest that in Q2 of 2025, Chinese buyers may have accounted for roughly half of Canaan’s sales. While unconfirmed by the company, this trend aligns with the hashrate data and points to a coordinated, large-scale reinvestment in mining infrastructure within China.

A “Subtle Shift” and the Economics of Enforcement

Industry insiders describe a “subtle shift” in the local enforcement of the ban. Rather than a public policy reversal, authorities in energy-rich regions appear to be turning a blind eye to mining operations, particularly those that utilize stranded power. As one miner succinctly told Reuters, “A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining.”

This pragmatic approach allows provinces to monetize excess energy that would otherwise go to waste, creating local economic benefits without overtly contradicting national policy. The situation is a real-world example of the concepts explored in foundational texts like “The Bitcoin Standard” by Saifedean Ammons, which discusses how Bitcoin can act as a unique tool for leveraging stranded energy assets.

Global Ripples: Tariffs, Price, and a Potential Catalyst

Several global factors are fueling this clandestine boom:

  • US Tariff Uncertainty: Proposed tariffs on Chinese-manufactured mining hardware have created supply chain anxieties, making it more lucrative for manufacturers to sell domestically.

  • Rising Bitcoin Prices: Despite recent volatility, the overall higher price of Bitcoin compared to the pre-2021 era makes mining a more attractive venture, even when operating in a legal gray area.

  • A Potential Rally Catalyst: The formal lifting of China’s ban—a growing possibility given the current trends—could serve as a massive bullish signal for the market. As noted by analysts at CoinDesk in their market coverage, the reintroduction of a major, regulated Chinese mining sector could significantly impact global network dynamics and investor sentiment.

After a 30% correction from its October all-time high of ~$125,000, Bitcoin has found support around the $86,000 level. The market is now watching closely to see if this unexpected comeback story from China could be the catalyst for the next major rally.