{"id":846408,"date":"2025-05-07T09:12:01","date_gmt":"2025-05-07T14:12:01","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/07\/will-china-drop-its-bitcoin-mining-ban-amid-trumps-tariff-pressure\/"},"modified":"2025-05-07T09:12:01","modified_gmt":"2025-05-07T14:12:01","slug":"will-china-drop-its-bitcoin-mining-ban-amid-trumps-tariff-pressure","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/07\/will-china-drop-its-bitcoin-mining-ban-amid-trumps-tariff-pressure\/","title":{"rendered":"Will China Drop Its Bitcoin Mining Ban Amid Trump\u2019s Tariff Pressure?"},"content":{"rendered":"
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A recent Cambridge report confirms that the United States now leads global Bitcoin mining, prompting questions about how China will respond.\u00a0Though the country has long held an anti-crypto stance, Chinese mining pools have historically controlled a substantial portion of the global Bitcoin hashrate.\u00a0<\/strong><\/p>\n

The US\u2019s current competitive edge and renewed hostility over trade policy might motivate China to recapitulate. BeInCrypto spoke with representatives from The Coin Bureau and Wanchain to understand what might encourage China to change its stance toward digital assets.\u00a0<\/p>\n

US Overtakes China as Top Bitcoin Mining Hub<\/strong><\/h2>\n

The US has firmly established itself as the world\u2019s largest Bitcoin mining hub. A recent Cambridge Centre for Alternative Finance (CCAF) report revealed that the US accounts for 75.4% of the reported hashrate<\/a>.\u00a0<\/p>\n

\"Global
Global distribution of Bitcoin mining activity. Source: CCAF<\/a>.<\/figcaption><\/figure>\n

This newest development confirms a notable reversal of power over Bitcoin mining<\/a> dominance. China emerged as the world\u2019s leading Bitcoin mining nation as early as 2017, leveraging its extensive mining infrastructure and low electricity costs to contribute upwards of 75% of the global hash rate at one point.<\/p>\n

Yet, the country would later crack down on the industry.\u00a0<\/p>\n

China\u2019s Crypto Crackdown<\/strong><\/h2>\n

In 2019, the National Development and Reform Commission of China (NDRC) signaled its intention to prohibit cryptocurrency mining<\/a> by releasing a draft law categorizing it as an \u201cundesirable industry.\u201d\u00a0<\/p>\n

Two years later, at least four Chinese provinces began shutting down mining operations. These crackdowns intensified amid concerns over excessive energy consumption<\/a>. <\/p>\n

Toward the end of 2021, the government declared all crypto-related transactions illegal<\/a>, further solidifying the ban and prohibiting overseas exchanges from serving Chinese citizens.\u00a0<\/p>\n

However, China possesses a proven capacity to adjust to geopolitical shifts that could jeopardize its economic dominance, and the current environment may present such a challenge.<\/p>\n

Has Bitcoin Mining in China Truly Stopped?<\/strong><\/h2>\n

Even with China\u2019s official stance toward crypto, mining activity has not stopped within the region. In July 2024, Bitcoin environmental impact analyst Daniel Batten reported that the hashrate within China currently accounts for approximately 15% of the global total.\u00a0<\/p>\n

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7\/8<\/p>\n

Bottom lines:
1. 15%+ hashrate still comes from China<\/p>\n

2. If you have 200-500 miners and want to do renewable-energy mining, you’re welcome<\/p>\n

3. This is particularly in Inner Mongolia, the Texas of China, which has a lot of wasted renewable power they want to monetize pic.twitter.com\/r6QUgmLmjT<\/a><\/p>\n<\/div>\n

\u2014 Daniel Batten (@DSBatten) June 6, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

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\u201cDespite the official ban, the\u202c\u202d infrastructure is already in place: from offshore mining to cross-border trading hubs. With\u202c\u202d more global momentum behind crypto adoption and the US taking the lead, China may find\u202c\u202d itself incentivized to lean in more strategically, even if unofficially,\u201d Nic Puckrin, Co-founder of the Coin Bureau, told BeInCrypto.\u00a0<\/p>\n<\/blockquote>\n

China also has a geographical advantage over the United States, especially regarding technological advancements.\u00a0<\/p>\n

Crypto mining, especially for proof-of-work cryptocurrencies<\/a> like Bitcoin, depends on Application-Specific Integrated Circuit (ASIC) equipment to handle the necessary complex calculations for validation and mining.\u00a0<\/p>\n

China\u2019s position as a top exporter of crypto mining hardware<\/a>, particularly to the US, gives it a potential advantage should it decide to revive its mining sector. <\/p>\n

The unfolding tariff dispute between the two nations<\/a> adds a layer of uncertainty to the long-term cost efficiency of US mining operations.<\/p>\n

Puckrin believes that the combination of trade friction and the US\u2019s invigorated push for crypto dominance might be sufficient to make China reconsider its position.<\/p>\n

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\u201cIt\u2019s unlikely China will make a public U-turn on its crypto mining and trading ban anytime\u202c\u202d soon. However, with US-based miners accounting for\u202c\u202d higher and higher proportions\u202c\u202d of\u202c\u202d Bitcoin\u2019s hashrate, China is bound to be paying attention and may well be quietly\u202c\u202d reassessing its stance,\u201d Puckrin told BeInCrypto.\u00a0<\/p>\n<\/blockquote>\n

However, China has strategies beyond restarting its Bitcoin mining industry to undermine the United States\u2019 dominance.<\/p>\n

China\u2019s Nuanced Approach Beyond US Influence<\/strong><\/h2>\n

Even though China opposes the widespread use of cryptocurrencies domestically, it may still see value in digital assets to counterbalance the US dollar\u2019s global currency dominance<\/a>.<\/p>\n

Several countries worldwide have either adopted or are considering central bank digital currencies (CBDCs) to strengthen their domestic currencies. China is at the forefront of these developments.<\/p>\n

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\u201cDespite\u202c\u202d the\u202c\u202d ban\u202c\u202d on\u202c\u202d Bitcoin\u202c\u202d mining,\u202c\u202d China\u202c\u202d has\u202c\u202d actively\u202c\u202d participated\u202c\u202d in\u202c\u202d the\u202c\u202d digital\u202c\u202d asset\u202c\u202d space,\u202c\u202d through initiatives like CDBC research and the digital yuan, or e-CNY,\u201d Wanchain CEO Temujin Louie told BeInCrypto.\u00a0<\/p>\n<\/blockquote>\n

In fact, China\u2019s efforts to create a digital yuan are partly driven by its desire to de-dollarize its economy and lessen its dependence on the US dollar.<\/p>\n

Louie also suggested that whatever move China makes, it won\u2019t solely base its decision on what the US does or does not do.<\/p>\n

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\u201c\u202c\u202dAs\u202c\u202d always,\u202c\u202d with\u202c\u202d China,\u202c\u202d a\u202c\u202d nuanced\u202c\u202d approach\u202c\u202d is\u202c\u202d best.\u202c\u202d Any\u202c\u202d shifts\u202c\u202d in\u202c\u202d policy\u202c\u202d will\u202c\u202d not\u202c\u202d be\u202c\u202d due\u202c\u202d to\u202c\u202d US\u202c\u202d tariffs.\u202c\u202d Rather,\u202c\u202d China\u2019s\u202c\u202d decisions\u202c\u202d will\u202c\u202d be\u202c\u202d informed\u202c\u202d by\u202c\u202d global\u202c\u202d market\u202c\u202d trends\u202c\u202d and\u202c\u202d China\u2019s\u202c\u202d own\u202c\u202d domestic\u202c\u202d strategy,\u201d Louie added.<\/p>\n<\/blockquote>\n

That said, China\u2019s decisions about digital currency will, in turn, affect how its position on crypto continues to develop.<\/p>\n

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\u201cWeakening\u202c\u202d USD\u202c\u202d dominance,\u202c\u202d whether\u202c\u202d exacerbated\u202c\u202d or\u202c\u202d caused\u202c\u202d by\u202c\u202d President\u202c\u202d Trump\u2019s\u202c\u202d approach\u202c\u202d to\u202c\u202d tariffs,\u202c\u202d may\u202c\u202d embolden\u202c\u202d China\u202c\u202d to\u202c\u202d be\u202c\u202d more\u202c\u202d aggressive\u202c\u202d in\u202c\u202d [its]\u202c\u202d efforts\u202c\u202d to\u202c\u202d internationalise\u202c\u202d the\u202c\u202d yuan,\u202c\u202d including\u202c\u202d the\u202c\u202d digital\u202c\u202d yuan,\u202c\u202d or\u202c\u202d e-CNY.\u202c\u202d Any\u202c\u202d change\u202c\u202d to\u202c\u202d China\u2019s broader strategy will be reflected in [its] stance towards crypto,\u201d he concluded.<\/p>\n<\/blockquote>\n

China\u2019s activity in other areas of international trade already proves how nuanced its policy changes tend to be.\u00a0<\/p>\n

Could China\u2019s Conflicting Crypto Policies Signal a Change?<\/strong><\/h2>\n

Aside from its appreciation of digital currencies like the e-CNY, China\u2019s stance on crypto has already proven somewhat contradictory. These discrepancies may fuel the belief that the country might just be willing to revert\u2014or at least soften\u2014its total ban on mining.<\/p>\n

A month ago, investment firm VanEck confirmed that China and Russia \u2013two countries particularly burdened by US sanctions\u2013 are reportedly settling some of their energy trades using Bitcoin.\u00a0<\/p>\n

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Russia and China are settling oil trades in BTC. I’ve heard first hand accounts of similar transactions with Venezuela. Full tankers are settled in BTC on the “grey” market. The U.S. Government crossed the Rubicon in 2022 by seizing Russian assets at the Federal Reserve and\u2026 pic.twitter.com\/Y8OwJROw9W<\/a><\/p>\n

\u2014 Jonathan Hamel (@jhamel) April 9, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

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\u201cWith the US dollar increasingly being used as a political lever \u2013particularly in\u202c\u202d tariffed economies\u2013 other nations are actively exploring alternatives. Indeed, many countries\u202c\u202d around the world, including China and Russia, are already using Bitcoin as an alternative for\u202c\u202d trading<\/a> in commodities and energy, for example. This trend is only going to accelerate as\u202c\u202d digital assets become a more prominent part of the global economy,\u201d Puckrin told BeInCrypto.<\/p>\n<\/blockquote>\n

According to Puckrin\u2019s analysis of these indicators, China\u2019s \u201cshadow crypto economy\u201d is projected to expand this year, which could result in a reassertion of its power. This resurgence would be primarily in response to de-dollarization efforts<\/a>, rather than a reaction to US dominance in mining.<\/p>\n

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\u201cWe\u2019ll likely see this\u202c\u202d activity ramping up in the near future, especially as more countries use crypto to bypass\u202c\u202d dollar-dominated systems,\u201d he concluded.<\/p>\n<\/blockquote>\n

It will remain crucial to interpret China\u2019s intentions, especially regarding cryptocurrency, by observing its actions rather than relying solely on its official statements.<\/p>\n

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Disclaimer<\/p>\n

Following the Trust Project<\/a> guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our\u00a0Terms and Conditions<\/a>,\u00a0Privacy Policy<\/a>, and\u00a0Disclaimers<\/a>\u00a0have been updated.<\/p>\n<\/div><\/div>\n

Read More<\/a>
\n Camila Grigera Na\u00f3n<\/p>\n","protected":false},"excerpt":{"rendered":"

A recent Cambridge report confirms that the United States now leads global Bitcoin mining, prompting questions about how China will respond.\u00a0Though the country has long held an anti-crypto stance, Chinese mining pools have historically controlled a substantial portion of the global Bitcoin hashrate.\u00a0 The US\u2019s current competitive edge and renewed hostility over trade policy might<\/p>\n","protected":false},"author":1,"featured_media":846409,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,1827],"tags":[],"class_list":{"0":"post-846408","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-china"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/846408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=846408"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/846408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/846409"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=846408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=846408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=846408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}