Investing.com — Four years after China completely banned both cryptocurrency mining and trading, the country is once again emerging as a leader in the sector. Reuters reports that both private miners and corporations are finding ways to circumvent the ban, exploiting cheap energy sources and excess data center capacities. According to Hashrate Index data, China’s share in the global Bitcoin mining process, which dropped to zero after the full ban was introduced in 2021, recovered to 14% by the end of October, placing the country third in the world rankings. Regions rich in energy reserves, such as Xinjiang, have become key attractions for mining operations. “Huge volumes of energy cannot be efficiently exported from Xinjiang, so it finds application in forms like crypto mining. New facilities are being actively built. I can say plainly: mining is concentrated where the cost of electricity is minimal,” shared an anonymous miner named Wang. Due to massive investments in creating data processing centers, local authorities have faced a surplus of computing resources and electricity. Regional administrations experiencing budget issues are tacitly encouraging the use of existing infrastructure for mining needs. This trend is confirmed by equipment sales results from major players. Canaan Inc., the second-largest manufacturer of mining equipment globally, has recorded an explosive growth in product sales within China. If in 2022 (immediately after the restrictions were introduced) China accounted for only 2.8% of the company’s revenue, last year this figure jumped to 30.3%, and in the second quarter of 2025 it exceeded the 50% mark.
About the Author
