Xiamen’s narrow lanes and historic arcade buildings reflect its deep-rooted connection to overseas Chinese communities and the remittances that funded the city’s growth (to say nothing of the reinvestment upon the return of these émigrés). Gulangyu Island, a must-see for visitors, is known for its distinctive mansions that hearken back to the days when globally mobile residents played a crucial role in shaping Xiamen’s growth in the image of what they found in Southeast Asia and beyond. It is the only Special Economic Zone in China created specifically because of its proximity to Taiwan and the island nation’s investment has long been a significant part of Xiamen’s economy, driving its #12 ranking for Fortune 500 companies. However, rising tensions across the Taiwan Strait and frequent military drills in the area have led to growing concerns among Taiwanese investors. Fears of a potential conflict have resulted in investments being delayed or cancelled, causing Xiamen’s economic growth to slow significantly over the past year. The ongoing strait tensions continue to cast a shadow over the city’s economic prospects, with Xiamen’s impressive #28 overall Prosperity ranking at risk. Even with these challenges, Xiamen remains an attractive place to live and visit, ranking #34 in our overall Livability category.