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Doing Business in Xi'an

Xi'an supports companies targeting western China, overland logistics links, and aerospace-related advanced manufacturing.

Focus industries: aerospace, advanced manufacturing, western China gateways, tourism and services

Xi'an at a Glance

2025–2026 data

City economy

City GDP
US$199bn
City GDP
#22 nationally (2025)
Population
13.2M
Population
Guanzhong Plain City Cluster
Corp. Income Tax
25% / 15%
Corp. Income Tax
HNTE / High-Tech Zone
WFOE Setup
6–10 weeks to licence
WFOE Setup
Licence to trading ~2–4 months

HR & payroll

Monthly Min. Wage
RMB 2,376/mo
Monthly Min. Wage
Xi'an municipal rate
Employer SI Burden
~26.65%
Employer SI Burden
Excl. housing provident fund
Employee SI Burden
~10.5%
Employee SI Burden
Excl. housing provident fund
Housing Provident Fund
5–12% each
Housing Provident Fund
Employer & employee, min 5%

Corporate income tax: the standard rate is 25%; qualifying High and New Technology Enterprises (HNTE) and companies in designated zones may be eligible for a reduced 15% rate; confirm with Acadia. Social insurance figures are indicative for the 2025–2026 policy year; rates are recalculated annually by city.

Introduction to Xi'an

Xi’an has emerged as an inland hub for high-tech manufacturing and advanced research. The local government provides support to foreign companies with tax incentives, funding programs, and research grants.

Xi’an has developed a strong aerospace and semiconductor industry, making it attractive to technology-intensive foreign companies.

Major employers in Xi’an include AVIC and semiconductor facilities operated by global firms. For foreign investors, Xi’an represents both a cost-effective yet technologically advanced platform for scaling high-value production and research.

Xi'an Economic Overview

Xi'an is the largest city economy in northwest China, serving as the regional capital of Shaanxi province, with a GDP of approximately RMB 1.39 trillion (US$199 billion) in 2025. Total trade reached approximately US$71 billion and utilized FDI stood at US$8.2 billion. The city is a designated Belt and Road land corridor hub, with direct rail links to Central Asia, Europe, and Southeast Asia via the China-Europe Railway Express. Xi'an sits within the China (Shaanxi) Pilot Free Trade Zone, one of the FTZs in China's western interior established to develop the inland economy and facilitate cross-border trade via rail.

Key Industries in Xi'an

Aerospace and defence are Xi’an’s defining sectors: the city hosts major AVIC (Aviation Industry Corporation of China) facilities and Boeing 737 freighter conversion operations at the Xi’an Yanliang Aviation Base. Semiconductor and integrated circuit manufacturing has expanded rapidly, with global chip makers in the Xi’an High-Tech Zone. Samsung’s semiconductor memory plant in Xi’an is one of the largest semiconductor memory production bases in Asia. Energy equipment manufacturing (covering gas turbines, nuclear power components, and transmission equipment) is a further pillar. Xi’an Jiaotong University, Northwestern Polytechnical University, and Xidian University generate the deepest pool of aerospace, electronics, and cybersecurity graduates of any inland Chinese city, supporting R&D hiring at a material cost advantage versus Beijing and Shanghai.

Xi'an WFOE Company Registration

Xi'an WFOE filings route through the Xi'an Administration for Market Regulation (西安市市场监督管理局) or district/county AMR (Yanta, Weiyang, High‑Tech Zone, Chan‑Ba, etc.). Xi'an High‑Tech Zone and Chan‑Ba international trade zones provide coordinated enterprise service halls supporting AMR filings.

Aerospace and advanced manufacturing scopes should align with national security sensitivities and park admission. Cross‑border ecommerce pilots may add customs recordals beyond the business licence.

Hiring Employees in Xi'an

Xi'an Jiaotong University, Northwestern Polytechnical University, and Xidian University anchor aerospace, electronics, and cybersecurity talent for western China. Employer social insurance and housing fund use Shaanxi/Xi'an schedules (employer burden is generally below coastal tier‑1 cities; confirm annual caps). Aerospace supply chain wages carry premiums vs general manufacturing.

Social Insurance Rates for Xi'an

2025–2026 policy year
CategoryEmployerEmployee
Pension16%8%
Medical insurance9%2%
Unemployment insurance0.5%0.5%
Work injury insurance0.4%—
Maternity insurance0.75%—
Sub-total (excl. housing fund)~26.65%~10.5%
Housing provident fund5–12%5–12%

Rates are indicative for the 2025–2026 policy year. Contributions are calculated on contributable salary capped at approximately 3× the local average monthly wage. Rates, base caps, and the work injury rate (which varies by industry risk category) are recalculated by city annually, typically effective July 1. Confirm current rates before processing payroll. Housing provident fund rates are set individually by each employer within the statutory range; the typical rate shown is the most common employer election.

Employee Salaries in Xi'an

In Xi'an, average salaries are about ¥9,000–11,000 per month for most white-collar employees. The city is known for aerospace, defense, and education. Although these are advanced industries, many roles sit in state-owned enterprises that offer stable but not the highest salaries, keeping average salaries moderate overall.

Economic & Free Trade Zones in Xi'an

  • China (Shaanxi) Pilot Free Trade Zone - Xi'an Area (High‑Tech, economic, and Chan‑Ba sub‑zones)
  • Xi’an High‑Tech Industrial Development Zone (software and aerospace concentration)
  • Chan‑Ba Ecological District international trade and exhibition belt
  • National Civil Aerospace industrial base linkages

Tradeshows & Events in Xi'an

Silk Road International Exposition and Euro‑Asia Economic Forum use Xi'an Qujiang International Convention Center and Xi'an Silk Road International Convention Center; aerospace and energy verticals add specialized conferences.

Xi'an Infrastructure

Xi'an Xianyang International Airport (XIY), Xi'an North high-speed rail mega‑hub on Xuzhou–Lanzhou and Xi'an–Chengdu lines, metro expansion into High‑Tech and Chan‑Ba, and highway access to Belt and Road overland corridors.

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