Migration Difficult in South East Asia for Chinese Miners
After the Chinese miners experienced a crackdown from the authorities, they started flocking to other countries in Southeast Asia. Latest trends show that the road will be difficult for them here as well. Vietnam, Cambodia and Myanmar are now becoming hotspots for Chinese crypto expats. However, power outages and resident complaints are making the road harder for them.
Though mining in China is still allowed, it is evident that the miners are rushing away from their home country. Most of them are now moving to border territories like Yunnan to keep electricity tariffs low. Most others are finding a safe haven in Cambodia, Myanmar and Vietnam. Some others are moving to South Korea. Zhang Han, a miner who recently shifted to Cambodia is suggesting that government and people are making survival stressful for his peers in these countries.
He said, “I really regret it,” when talking about the move. Although electricity is cheaper in these nations, the power system is unreliable. He explains, “Compared with others who choose Vietnam and Myanmar, the electricity in Cambodia is slightly more expensive, but it costs less in other expenses.”
He also mentioned that electricity theft is rampant in these nations. They usually get some help from insiders and engage in theft of power from streetlamps. The locals and authorities do not like such behavior, especially when miners are doing this on a large scale in the suburbs. It is causing disturbances to the already vulnerable power supply of these regions.
Another big problem for miners, according to Zhang, is availability of hardware and accessories. Hardware is firstly not available easily in these places. When it is, the cost could be three times as high when compared to China. In addition to this, maintenance is a problem and so are accessories. Overall, operations are becoming less profitable, even when they are moving to low electricity fare zones.
Even if these problems are solved, power outages frequently disturb the operations of these mining facilities. The local competition and the people are unfriendly towards these people as they are putting unwarranted pressure on their resources. Financial institutions, the local mining community and other stakeholders are equally unhappy about the Chinese migrating to their regions.
In circumstances like these, the Chinese would want to think about finding newer sources of power elsewhere. As such, resources are becoming increasingly limited and the government stance on their activities, specially as ‘outsiders’ will be tougher in the future. Many large-scale mining companies are moving to friendlier regions like Canada and parts of Europe.
These areas have ample resources and lower populations. Additionally, temperatures are low which is helpful in carrying out these activities. The regulations, for now, are not hostile which could help the miners make the most of their resources.
This relocation will throw them on the other side of the world and present many cultural and language barriers too. It looks like Chinese crypto enthusiasts have nowhere else to go but China. The safest facilities are located close to border regions but they may soon be under the watchful eye of the government.