When Xi'an Hi-tech Industries Development Zone invited Mobi to invest there in 2006, Mobi decided to make the city the location of its first office and factory outside Shenzhen. In March 2008, the company invested more than 100 million yuan ($14.7 million) and established a new industry park of more than 3.3 hectares in Xi'an, where its workers number more than 200.

Xi'an is rich in high-quality human resources, and average salaries for hi-tech talent there are much lower than in Shenzhen, said Zhang Qixian, General Manager of Mobi, Xi'an.

Wu Yongping, Director of the Cooperation Department at the Economic and Technology Cooperation Office of Zhejiang Province, also said that Shaanxi has three major advantages in attracting investment from east China-extensive market coverage, hi-tech talent and rich energy and mineral resources.

Shanghai-based Shenshan Silicon Material Co. is the latest company to make the move to the west. It signed a contract with Shaanxi Xinyuan Power Generation Co. this month to produce silicon chips used in solar batteries. Li Tao, President of Shaanxi Xinyuan Power Generation Co., calls the combination of two companies a perfect match.

"Silicon chip production needs power, Li said. "My company generates power. Shaanxi is rich in raw silicon."

Shaanxi's powerful advantages in the equipment manufacturing industry also will be favorable for Xu's business there, where it is a pillar industry and has a solid foundation.

"I hope to find a strong company or factory here and can cooperate with them," Xu said.

Xu said he would consider moving his company from Zhejiang to Shaanxi if his pilot business in Shaanxi went well.