China's Resilient Influence on Bitcoin Mining Amid Regulatory Clampdown

China has reaffirmed its substantial role in the global Bitcoin (BTC) mining ecosystem, as evidenced by a rebound in its hashrate share despite regulatory pressures. Recent data reveals that the country, once a dominant force in cryptocurrency mining, has managed to maintain a critical position, showcasing its resilience and strategic importance in the sector.

China's Hashrate Share Rebounds

A report from Bitcoin mining infrastructure analytics firm Luxor, dated October 24, highlights China’s Bitcoin hashrate share at approximately 14% in Q4 2025, a slight increase from 13% in the previous quarter. With an operational computational capability of 145 EH/s (exa-hashes per second), China’s influence persists in the global mining landscape, even as it navigates stringent government regulations.

Historical Context: The 2021 Regulatory Crackdown

China’s cryptocurrency industry faced a major disruption in 2021 when the government implemented an outright ban on cryptocurrency exchanges and mining. This move forced large-scale mining operations to migrate to crypto-friendly nations like the United States and Kazakhstan. Yet, despite the diasporic shift, China has remained an integral player due to its dominance in mining equipment production, component supply chains, and technical know-how.

Leading hardware manufacturers such as Bitmain, MicroBT, and Canaan underscore China’s dominance in the global mining sector. These firms continue to shape the market even as the physical location of mining operations shifts, enabling China to exert an indirect but formidable influence on the global Bitcoin mining ecosystem.

Covert Mining Activities and Supply Chain Dependencies

While the regulatory crackdown aimed to eliminate cryptocurrency mining within its borders, reports suggest that underground mining activities persist in China. Additionally, some organizations have sidestepped regulations by running their operations via overseas subsidiaries. This intricate network of covert activities and workarounds has made it challenging to thoroughly document China’s actual contribution to Bitcoin mining.

Luxor estimates that when factoring in mining equipment production, ownership, and other supply chain dependencies, between 55% and 65% of the world’s total Bitcoin mining capacity is still tied to Chinese influence.

Insights from Industry Experts

Experts in the cryptocurrency mining sector have been quick to recognize China’s enduring significance. According to the Luxor report, “China has regained a significant portion of its prior influence, and through its control over mining equipment manufacturing, technology, and ownership, it continues to exert a formidable impact on the global mining ecosystem.”

Despite ongoing regulatory obstacles, China’s role in the Bitcoin mining industry remains critical. The symbiotic relationship between the country’s mastery in manufacturing and global supply chains ensures that its influence is likely to endure, cementing its importance in shaping the future of cryptocurrency mining worldwide.