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Xining is located in the eastern part of Qinghai Province and lies on the Huangshui River. It has a total area of 350 km².

Xining is located on the eastern edge of the Qinghai-Tibet Plateau and the upper reaches of the Huangshui River. It is the political, economic, and cultural center of Qinghai Province with an average altitude of about 2,200 meters (7217 feet). Human activity in the region can be traced to 2,100 years ago. During the Western and Eastern Han dynasties, owing to its developing agriculture, Xining was paid noticed due to its economic and military significance. As well as being an important hinge between the Central Plains and the western part of China in ancient times, Xining was an important link in the Silk Road. It continues to be an important rail and road link to the hinterlands of the Qinghai-Tibet Plateau.

Xining has also been dubbed the Summer Resort Capital of China owing to its cool summer, with a cold semi-arid climate (Köppen BSk). Conditions are influenced by the aridity and high altitude. Lows are cold or cool throughout the year, and highs are often more than 15 °C (27 °F) warmer than lows. Monthly daily averages range from −7.4 °C (18.7 °F) in January to 17.3 °C (63.1 °F) in July; the year averages at 6.1 °C (43.0 °F). Rainfall falls mainly from May to September, and and the area is often dry and sunny, with nearly 2680 hours of bright sunshine per year.