Historically and culturally rich, Xian’s pillar industry is equipment manufacturing, particularly aircraft parts, and military and electronic equipment, and leads the Western Region in software development, aerospace technology, and high tech R&D. Xian’s dominance has in part been due to significant investment, the closeness of some of the best universities in the region, and low labour costs. Additionally, the central city was one of the first service-outsourcing cities in China and still engages in software and service outsourcing.
With a 50-year plan to recreate much of the ancient imperial capital, the old city centre under major renovation. Xian’s recent growth is due to heavy FAI in its economic development zones; as a result, the city must look elsewhere for sources of economic growth.