From "new" friends to "old" partners, how has Xi'an become the "preferred location" for foreign investment in the western region?

Spring in Xi’an, Shaanxi Province, is full of vitality.
At the construction site of the Korea New Han Diamond Semiconductor Key Material Manufacturing Project in Xi’an High-tech Comprehensive Bonded Zone, construction workers are vigorously advancing the main building;
In Jingwei Industrial Park, Xi’an Economic and Technological Development Zone, the ZF LIFETEC gas generator capacity expansion project has officially started, marking a key step in ZF’s deep cultivation of the Chinese market.

The ZF LIFETEC gas generator production line in Germany. (Provided by the interviewed company)

In recent years, Xi’an has become a preferred location for foreign investment in western China, thanks to its industrial strength, business environment, and development potential.
Two foreign-funded projects—one new and one old—are vivid examples of Xi’an’s continuously rising foreign investment enthusiasm and the deep-rooted development of foreign enterprises.

Korea New Han Diamond signed a contract with Xi’an High-tech Zone in November 2025, with a total investment of 250 million yuan to establish a semiconductor key material manufacturing project.

At the project construction site, Zhang Zai-rong, head of Korea New Han Diamond (Xi’an) Co., Ltd., said:
“Xi’an’s semiconductor industry has complete supporting facilities, a complete industrial chain, and a prominent cluster effect, which are the most solid foundation for enterprise development.”

The renderings of Korea New Han Diamond (Xi’an) Co., Ltd. (Provided by the interviewed company)

Located in Xi’an Economic and Technological Development Zone, ZF Dongfang Automotive Safety Technology (Xi’an) Co., Ltd. has achieved new highs in performance over the past decade.
In 2024, it will also launch a 150 million euro capacity expansion and R&D center project for gas generators, continuously increasing its footprint in Xi’an.

In the company’s production workshop, Manfred Hughes, Vice President of ZF LIFETEC global gas generator production line, highly praised the company’s development in Xi’an:
“More than ten years ago, we chose to build a factory in Xi’an, and it now seems to be a very correct decision. The company has been steadily growing every year.”

Manfred Hughes said that Xi’an is located in the center of China, with significant geographical advantages.
More importantly, the city has excellent education, which can continuously supply outstanding talents for enterprises.

Foreign-invested companies deeply rooted in Xi’an are not only attracted by the city’s educational, cultural, and industrial resources but also by the continuously improving investment environment.

In recent years, Xi’an has formulated a global investment promotion plan, fully and multi-channelly integrating domestic and international resources, expanding foreign investment channels;
Strictly implementing the negative list system for foreign investment access, establishing a full lifecycle service guarantee mechanism for investment projects, accelerating the landing and production of foreign-funded projects, and continuously improving the level of foreign investment liberalization and facilitation.

“Xi’an has established a leadership responsibility system covering the entire process of project ‘negotiation, signing, landing, and production,’ continuously optimizing the business environment,” said Guo Xiaohui, Director of the Xi’an Investment Cooperation Bureau.
“We actively organize brand activities such as roundtable meetings and salons for foreign-invested enterprises to understand the difficulties and problems encountered in their production and operation, and establish a problem ledger.”

“From project negotiation and signing to construction approval, staff in Xi’an High-tech Zone provide ‘hands-on’ services throughout the process.
They not only help us streamline procedures and accelerate approval but also actively introduce semiconductor companies within the district to open up product sales channels in advance,” Zhang Zai-rong said.

Manfred Hughes said, “Over the years, our work in Xi’an has received strong support from the local government. We have established good cooperative relationships with local companies, which makes us feel especially secure in developing in Xi’an. Because of this, we have decided to deepen our cooperation continuously.”

By 2025, Xi’an will establish 349 new foreign-invested enterprises, ranking third among 15 sub-provincial cities nationwide;
The actual use of foreign capital in manufacturing and high-tech industries has respectively increased by 32.1% and 72.6%.

The logistics base in Xi’an International Port Station storing automobiles. Xinhua News Agency photo by Shao Rui

The influx and continuous deepening of foreign investment, deeply integrated and coordinated with local industries, have become an important force driving Xi’an’s industrial upgrading and high-quality economic development.

A series of projects have been implemented, promoting key industries such as electronics, automotive manufacturing, and semiconductors in Xi’an to move toward high-end, intelligent, and green development, forming a good industrial ecosystem of “leading enterprises driving, chain companies interacting, and foreign and local enterprises collaborating.”

During the 14th Five-Year Plan period, as the western region continues to shift from an “inland hinterland” to an “open frontier,” Xi’an’s “Western pull” will continue to be unleashed.
(Reporter Jiang Chenrong, Fu Ruixia)