A list of 640 key provincial projects, with planned investment exceeding 350 billion yuan, includes 67 new advanced manufacturing projects set to commence. This constitutes Shaanxi's key project plan for 2026. Viewing this list merely as a budget reveals only the financial figures. However, interpreting it as a strategic document unveils the province's direction for at least the next three to five years. Fundamentally, this list is not about how much will be spent, but rather what Shaanxi intends to rely on for its economic sustenance in the coming years.
The province is placing a heavy emphasis on advanced manufacturing. Examining the structure: among the 640 key provincial projects with annual investment surpassing 350 billion yuan, 202 are new projects. Advanced manufacturing projects account for 67 of these, representing over one-third. There are 60 infrastructure projects. Translating these figures reveals a straightforward priority: new resources are allocated first to manufacturing, with infrastructure following. This marks a departure from the "infrastructure first" approach historically common in many central and western regions.
A comparative analysis with other central and western provinces reveals an interesting phenomenon: Shaanxi is among the few prioritizing "advanced manufacturing" as a core focus area. In other words, it is making a significant bet on this sector. The rationale lies in Shaanxi's industrial strengths. In manufacturing, Shaanxi possesses one of China's most comprehensive aviation industry chains, hosting 30% of the nation's research and production capacity in aerospace. Major automakers like BYD, Geely, and Shaanxi Automobile Group have established operations in the province. Fast Gear's heavy-duty truck transmission output leads globally, and it is home to flagship enterprises like Samsung Semiconductor. These assets are considered scarce resources nationally.
However, possessing strengths is insufficient. The critical question is whether these assets can be transformed into genuine growth engines. The project list provides an answer. A detailed breakdown of the manufacturing projects, comprising the 67 new starts plus 148 ongoing projects, reveals a clear, chain-like industrial puzzle. In semiconductors and electronic information, Xi'an High-tech Zone dominates nearly all semiconductor projects, spanning from integrated circuit production to the Exchip Silicon Industry Base and an 8-inch high-performance specialty process semiconductor chip production line. The industrial chain encompasses production lines, silicon bases, photoresists, packaging and testing, and power devices. This effort goes beyond filling chain gaps; it is an attempt to master core technologies. Amid global semiconductor supply chain restructuring, Shaanxi, leveraging Xi'an's educational and scientific resources, is striving to make inroads in critical sub-sectors like power semiconductors and optical chips.
The layout of the new energy vehicle (NEV) industry chain is extensive. It includes BYD's power battery plant in Xixian New Area, BYD's component facility in Baoji, a key auto parts base in Xianyang, complemented by traditional "hidden champions" like Fast Gear and Hande Axle. Shaanxi is forming a complete closed loop from batteries to vehicles, and further to components and equipment manufacturing, completing the "vehicle + core components" puzzle. Once this NEV industrial chain闭环 forms, its comprehensive ecosystem becomes difficult to replicate. Shaanxi would then transition from being an "automobile assembly site" to an "automotive industry hub."
The new materials sector is also densely packed with projects. Ongoing and new projects related to titanium alloys, superconducting materials, carbon-based materials, as well as aluminum-based, molybdenum-based, and precious metal materials, essentially provide foundational support for the defense, new energy, and semiconductor industries. In its traditional strength, the aviation industry chain, Shaanxi is opting for comprehensive strengthening, emphasizing "systematic capability building." From aircraft and engine manufacturing, materials, and components to test bases, space propulsion, and commercial spaceflight, Shaanxi is constructing a moat difficult for other provinces to replicate. This heavy bet on advanced manufacturing, executed through supply chain reinforcement, sends a clear signal: Shaanxi is marshaling provincial resources to transition from a "major manufacturing province" to a "strong manufacturing province."
Traditional energy is undergoing an upgrade. Conventionally, the "black gold" sector has been a key pillar of Shaanxi's economy. In the 2026 list, while the 47 ongoing and 25 new modern energy and chemical projects remain substantial in number, their essence has qualitatively changed. In Yulin and Yan'an, coal mine and oil/gas development projects remain dense, such as the ongoing Kekegai, Guojiatan, and Haicetann ten-million-ton级 coal mines, and new projects like Changqing Oilfield's exploration and development, and Yanchang Petroleum's 2026 oilfield and natural gas exploration. These ensure the fundamental base of energy supply security.
Large-scale thermal power unit construction is prominent, particularly frequent appearances of 2×1000MW units. Examples include ongoing projects like the second phase of Shaanxi Coal Huangling Diantou Power Plant and new projects like the second phase of Yanchang Petroleum Fuxian Power Plant. Pumped storage, grid, and energy storage projects are rapidly increasing. Ongoing projects include the Foping, Shahe, and Caoping pumped storage power stations, while new projects feature the North Ningxia pumped storage station and various large-scale battery storage demonstrations.
Coal chemical projects are extending into olefins, aromatics, and new materials, often involving billion-yuan级 deep-processing projects. For instance, Yulin is advancing a 15-million-ton/year coal grading clean and efficient conversion demonstration project. New projects include a 60,000-ton/year polyoxymethylene high-end new material project in Binzhou. These project directions and changes release two key signals: Shaanxi's energy status remains crucial, but its form is upgrading. The utilization path is evolving from "selling coal" to "coal-power integration," and further towards "coal chemicals + new materials." This is the real focus. Yulin, as the main energy battleground, is no longer content with merely extracting and selling coal. Instead, through complex chemical processes, it aims to utilize coal comprehensively, transforming it into olefins, aromatics, and even precursor materials for high-end new materials. When coal prices enter cyclical lows, the downstream chemical industry chain acts as a "ballast" against risks. Furthermore, Shaanxi is attempting to convert its energy advantage into a cost advantage for the new materials industry. This is not merely industrial extension but a contest for pricing power. Simultaneously, Shaanxi is assuming a national energy security role, encompassing not only "fossil fuels" but also a "storage + new energy support system," with the Yulin sector resembling a "national team configuration" for energy.
Analyzing the list also clearly reveals two poles in Shaanxi's regional economy: Xi'an and Yulin. Xi'an, the provincial capital, remains the absolute core for advanced manufacturing and technological innovation. Nearly all high-value-added industries point towards it, including semiconductors, superconductivity, laser facilities, national research installations, and data centers. However, Xi'an's focus is no longer simply on expanding itself. Instead, by strengthening its own capabilities, it aims to coordinate industrial chain division of labor with surrounding cities, acting as the "mother machine" and "market" for the province's industrial upgrade. A typical example is the automotive industry chain, where Xi'an, Xianyang, and Baoji form a "iron triangle." BYD's battery plant in Xixian New Area, combined with BYD's components in Baoji, Fast Gear transmissions, Hande axles, and Xianyang's parts base, create a complete chain from core components to vehicles.
Similarly, Xi'an, Tongchuan, and Weinan are becoming a "corridor" for new materials. Projects involving rare metal materials and superconductivity innovation in Xi'an correspond with aluminum-based materials and copper foil in Tongchuan, and molybdenum/vanadium chemicals in Weinan, forming an emerging new materials industrial belt across eastern Guanzhong.
Yulin, as the second economic pole, is responsible for "energy and transformation." The concentration of major "coal chemical" and "new material" projects in Yulin indicates its ambition to evolve beyond a simple energy exporter into a global production base for coal-based new materials and high-end chemicals. Beyond traditional coal chemicals, Yulin's list includes projects like a zero-carbon industrial park hydrogen demonstration and a 50,000-ton/year ultra-high molecular weight polyethylene resin plant. This signifies Yulin's attempt to leverage its abundant solar/wind resources and industrial by-product hydrogen to secure a position in the future energy landscape. Notably, for 2026, Yulin features not only large-scale industrial investments but also major infrastructure like the Dingbian Civil Airport and the Yellow River East Line Water Diversion Project. Clearly, with its rising economic aggregate, Yulin is addressing urban functionality shortcomings, advancing towards a modern, livable regional central city, thereby forming a "second pole" within the province that complements Xi'an.
In summary, Shaanxi's 350 billion yuan investment plan for 2026 is not about expansion but about deepening industrial capabilities: transitioning energy from mere output to controlling the value chain, elevating manufacturing from supporting roles to core segments, and developing industries from isolated points to chained clusters. Challenges are evident. Competition in high-end manufacturing is a "winner-takes-most" game, and whether Shaanxi can break through in intense regional rivalry remains a question for time. Nonetheless, this list sends a definitive signal: Shaanxi is prepared. In an era of uncertainty, Shaanxi has chosen to write its economic narrative through determined industrial investment.
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