On February 23rd, Mercer published its 18th quality of living study. The study examined social and economic conditions, health, education, housing and the environment, and is aimed at guiding governments and big companies to assess where they should place and how much they should pay employees on international assignments.

The city of Xi'an occupies the 139th spot on the list this year, 2 places higher than when it first appeared in the study in 2014. Then, Mercer wrote: "The city of Xi'an, China has also witnessed some major developments, such as the establishment of an 'Economic and Technological Development Zone' to attract foreign investments. The city is also host to various financial services, consulting, and computer services." The following year the consultancy agency concluded that Xi'an was an emerging business destination, that has made great leaps forward in telecommunications and consumer sectors.

This year we see Xi'an slowly but surely climbing up the ranking, certainly, an indication of things to come.  Especially when you consider that Xi'an is to once again become the starting point of the new Silk Road in President Xi Jinping's ambitious 'One Belt, One Road' initiative that he proposed in 2013. Since then the city has been doubling up its efforts to become the largest inland port and logistics center in Northwest China. In order to fulfill this promise, Xi'an has been focusing on developing infrastructure and transport networks to support the trade that the Silk Road Economic Belt initiative will produce.

It is reported that Xi'an has invested well over $18 billion into numerous projects, including science and technology, logistics, and equipment manufacturing industry. Airport New City in Xi'an's Xixian New Area and the Xi'an International Trade and Logistics Park constitute two of those projects, and will form the logistics hub for the entire region where one will oversee air freight and the other focus on land-based logistics. Moreover, the duty-free zones in both parks will prepare and strengthen Xi'an's bid to become China's next free-trade zone.

With steady yearly increase in GDP, government support and investment, and mix of an established manufacturing industry and innovative startup companies, Xi'an is rapidly developing into a bustling metropolis where tradition and progress go hand in hand. Even though Xi'an's economic development has lagged behind in comparison with the coastal regions, it is a very attractive destination for Western enterprises wanting to enter the China market. With the support of the local governments, low operating costs and skilled labor force, Xi'an is as good as, if not better than Beijing, Shanghai or Guangzhou to consider as a location for your first entrance into China.

Having realized early on the promise that this ancient city holds, Horsten International chose to establish its China office here already in 2001, offering a multitude of services to Western SMEs. For more information about Horsten’s background and historical link to the city of Xi’an, please check the following links: http://www.horsten.be/company_background.php and http://www.horsten.be/blog.php?art=11&p=1&j=.