How does it come that Chinese miners are mining for free?
https://www.reddit.com/r/Bitcoin/comments/43opxy/does_anyone_know_what_the_chinese_miners_are/According to Charlie Lee, a large number of Chinese miners have zero cost for electricity. Instead, they have entered into profit-sharing agreements with the small, mostly hydro-based providers.
The percentage was, of course, not revealed. A situation like that allows for infinite scaling, up or down, to the capacity of the provider and makes it virtually impossible for anyone anywhere else to compete for hashpower.