I have not research about your post and Xinjiang. Mining is a business, they pay taxes and pay for electricity, if Xinjiang is an autonomous region it means the authority of Mainland do not get to interfere in their economic activities but military protection,  I understand is mainly i mainland that we hear the government coming for bitcoin traders and all of that. Even though there have been several conflicting report in the past of the Chinese government banning bitcoin, this has ever stop the growth and advancement of bitcoin and the entirely space. China knows the next financial war room is digital currency and they are now well positioned develop blockchain projects. Don't be moved, the future of crypto currency is brighter than we can currently comprehend now.