The Resurgence of Bitcoin Mining in China: An Overview
A mild resurgence in bitcoin mining within China has sparked discussions about potential changes to the nation’s strict regulations. Despite the calls for more lenient policies and the chance to tap into the country’s energy surplus, experts contend that an official lifting of the mining ban remains improbable.
Bitcoin’s Rise in China’s Mining Market
According to the Hashrate Index, a platform operated by Luxor Technology, China’s share of the global bitcoin hash rate—a measure of the network’s processing power—has increased from 13.75% in early 2025 to 14.06% currently. This makes China the third-largest country for bitcoin mining, trailing only the United States and Russia.
The Hashrate Index, which has only provided country-specific data this year, notes a significant fall in China’s hash rate, which dropped to zero in July 2021 following Beijing’s crackdown on bitcoin mining. At that time, the Cambridge Bitcoin Electricity Consumption Index (CBECI) recorded a drastic decline in China’s mining activity.
The Mining Market’s Historical Context
Before the regulatory crackdown, China dominated the global bitcoin mining landscape. By September 2021, CBECI data indicated a slight recovery, with China’s market share jumping to 22.29%. However, data collection ceased in February 2022, leaving uncertainties about subsequent developments.
Experts Weigh In on the Possible Policy Shift
The resurgence of bitcoin mining has led some scholars to propose that China reassess its mining ban. Guojun He, an economics professor at the University of Hong Kong, argues that leveraging crypto mining can help utilize China’s excess renewable energy. According to He, certain regions in China have experienced a solar and wind energy oversupply of over 10% and 15%, respectively. Integrating crypto mining could absorb this surplus, stabilize power grids, and offer economic advantages.
In a similar vein, Wang Yang, an academic previously at the Hong Kong University of Science and Technology, highlighted that banning crypto mining could be detrimental and inadvertently push related enterprises abroad.
US Influence and Economic Strategy
As the cryptocurrency landscape evolves, the United States has shown a more accommodating stance toward digital assets, especially under previous administrations. This has prompted speculation that China might soften its strict policies, recognizing the strategic value of the crypto sector amidst global economic competition.
Notably, some industry insiders have suggested that localized support for bitcoin mining may be discreetly endorsed by Chinese authorities, particularly among state-owned enterprises. This aligns with efforts to minimize energy waste while aiming for economic benefits; however, official endorsement remains unlikely.
Energy Concerns and Mining’s Place in China’s Future
From an energy perspective, China has rapidly expanded its power generation capacity, providing temporarily cheap electricity for underground mining operations. Despite this, analysts warn that Beijing’s focus on high-performance computing and artificial intelligence means that it will prioritize projects that align with long-term development goals over energy-intensive activities like bitcoin mining.
Recent remarks from Pan Gongsheng, governor of the People’s Bank of China, reinforced the notion that the country is not shifting its stance on digital assets anytime soon.
The prevailing sentiment among experts is that a significant policy shift regarding crypto mining is not on the horizon. Yang Liu, a partner at DeHeng Law Offices in Beijing, expressed skepticism about any immediate encouragement for mining activities, implying that such a strategy would contradict China’s broader energy and economic objectives.
Closing Thoughts
As renewed bitcoin mining activity flares up in China, the conversation evolves around potential policy shifts and the economic implications of integrating crypto mining into national energy strategies. While some experts see potential benefits, the overarching regulatory environment seems poised to resist major changes, keeping the future of bitcoin mining in a complex state of flux amidst China’s rigorous regulations.