24th August 2026
By Anjali Kochhar
China once dominated Bitcoin mining, accounting for more than 70% of global activity at its peak. Cheap electricity, industrial infrastructure and major mining-hardware manufacturers made the country the world’s leading mining hub. That changed in 2021, when Beijing launched a crackdown on cryptocurrency mining. Mining facilities were shut down, equipment was moved overseas and China’s estimated share of global Bitcoin hashrate briefly fell to zero.
Five years later, China is back in the Bitcoin mining conversation. But this does not mean Beijing has lifted its ban. In fact, China’s regulatory actions show that the government continues to oppose domestic cryptocurrency mining.
On February 6, 2026, Chinese financial and economic authorities issued a joint notice reaffirming restrictions on virtual currencies and mining. The authorities ordered local governments to continue shutting down existing cryptocurrency mining projects and preventing new ones. The policy also restricts mining-machine manufacturers from providing mining-related sales and services within China.
Despite these restrictions, estimates show that Bitcoin mining activity has returned.
China’s Bitcoin Hashrate Is Rising Again
Hashrate Index estimated that China represented around 11.7% of global Bitcoin hashrate, or roughly 125 EH/s, in January 2026. That placed China among the world’s largest mining countries despite the official ban. Earlier, Hashrate Index data cited by Reuters showed China’s share had reached about 14% by October 2025. CryptoQuant estimates have placed China’s potential share even higher, at between 15% and 20%.
These figures are estimates, not official government data. Measuring mining activity inside a country where the industry is restricted is difficult. Operators can conceal their locations, move equipment between regions or use facilities presented as data centers. Nevertheless, the estimates indicate that China has regained a role in the mining network.
Cheap Electricity Is a Major Factor
Electricity is one of the biggest costs for Bitcoin miners, making regions with cheap or surplus power attractive. China has large energy-producing regions and extensive power infrastructure. Xinjiang has significant coal and renewable energy capacity, while Sichuan and Yunnan have historically attracted miners because of abundant hydropower.
Reports in 2025 indicated that miners were returning to parts of Xinjiang, where inexpensive electricity and surplus power could make mining economically attractive. Existing industrial facilities and data-center infrastructure can also reduce the cost of restarting operations.
The Hardware Industry Never Left
China’s influence extends beyond mining itself. Chinese companies such as Bitmain, MicroBT and Canaan remain major players in the global market for application-specific integrated circuit, or ASIC, mining machines.
Canaan reported $529.7 million in total revenue for 2025, including $113.2 million from its own mining operations. Its mining revenue increased sharply compared with the previous year. The company also reported that a majority of its mining-machine and related-parts revenue came from customers outside China, highlighting how Chinese manufacturers have adapted to the post-ban environment.
Why Is Mining Returning Despite the Ban?
The resurgence appears to be driven by economics and enforcement challenges rather than a policy reversal.
Bitcoin mining is decentralized and mobile. Mining machines can be transported, facilities can be relocated and operations can be disguised as other types of computing businesses. In regions with surplus electricity, consuming that power locally through mining can also make economic sense.
China’s February 2026 policy shows that authorities are aware of these challenges and intend to continue enforcement. However, completely eliminating mining is difficult when operators have access to inexpensive electricity, existing infrastructure and experienced technical workers.
The economics of global mining have also become more challenging in 2026. Network difficulty, electricity prices and Bitcoin’s market value determine whether individual mining operations remain profitable. Some miners outside China are increasingly shifting infrastructure toward artificial intelligence and high-performance computing, where data-center customers may provide more predictable revenue.
That makes cheap electricity even more valuable for Bitcoin miners willing to accept regulatory risk.
What Does China’s Return Mean for Bitcoin?
China’s renewed presence could change the geographic distribution of Bitcoin mining. After the 2021 crackdown, mining activity shifted heavily toward the United States, Kazakhstan, Russia and other jurisdictions. A larger Chinese share could reduce some geographic concentration in the network.
However, the resurgence also carries uncertainty. Miners operating illegally face the risk of enforcement, electricity restrictions, equipment seizures and sudden policy changes. The February 2026 notice makes clear that Beijing has not officially changed its position.
The key distinction is therefore between legality and activity.
As of August 17, 2026, Bitcoin mining remains prohibited in China. There has been no government announcement legalizing the industry or reversing the 2021 crackdown. Yet available estimates suggest Chinese operators have rebuilt a share of the country’s mining capacity.
China’s comeback is not a government-backed return to Bitcoin mining. It is the result of cheap and surplus electricity, existing infrastructure, technical expertise, mining-hardware supply chains and the difficulty of enforcing a nationwide ban on a mobile industry.Five years after Beijing attempted to push Bitcoin miners out, China has once again become a part of the mining landscape. The country may have banned Bitcoin mining, but it has not managed to erase the industry.
