Situated in the inland, its climate is temperate continental semi-arid climate. Its average precipitation is 200-600 mm and its temperature is 5-10°C. Its frost-free period is 125-195 days. With distinct seasonable features, it enjoys a great difference in temperature between daytime and night. It is one of the regions which have the most enough sunshine and solar radiation and the high-value area of optical energy resource as well.

Ningxia is rich in resources both on land and under land, enjoying both the agricultural and energy advantages. Its land resource is mainly used for grain production. Its crops include wheat, rice, sorghum, corn and millet. Its major economic crops include flax, Cannabis sativa, rape and beet. The region is rich for fur sheep and is China’s famous production area of fur sheep. It has 45 million mu of grassland to be exploited and it is one of the top 10 pastures of China.

Its has approximately 50 kinds of found minerals and its potential value of natural resource per capita is 163.5% of the national average value, ranking the fifth. It is rich in non-metals including gypsum, limestone, marble and quartz sand. Its coals enjoy great reserve, complete varieties, top quality and favorable exploiting conditions.