China’s western provinces and autonomous regions Chinese Government Prioritizes Huawei in AI Chip Distribution aggressively market some of the world’s lowest electricity prices to lure high-energy factories in 2025. Regions like Xinjiang, Inner Mongolia, Qinghai, and Gansu now provide industrial rates as low as 0.20–0.30 yuan/kWh undercutting coastal hubs and many global competitors.
Key Regions and Ultra-Low Tariffs
Xinjiang Industrial power drops to 0.20–0.25 yuan/kWh in select industrial parks, fueled by abundant coal and solar/wind generation.Inner Mongolia Major coal bases offer rates around 0.22–0.28 yuan/kWh, with some large users securing even lower deals.Qinghai Hydro and solar-rich province quotes 0.25–0.30 yuan/kWh, attracting data centers and green hydrogen projects.
Ningxia & Gansu: Similar incentives, often below 0.30 yuan/kWh for new factories committing to long-term contracts.These prices are 30–50% cheaper than eastern provinces like Guangdong and Jiangsu, where rates typically exceed 0.60–0.80 yuan/kWh
Strategic Shift for China’s Economy
This policy supports Beijing’s “dual circulation” strategy: moving heavy industry inland while keeping high-value manufacturing in coastal areas. Additionally, it helps balance regional development and reduces eastern grid strain.
However, concerns about carbon emissions and water usage in arid western regions remain, even as many new plants adopt green-energy contracts.
