Ankang's economy is driven by agriculture, tea production, hydropower, and increasingly, eco-tourism. The city's designation as a water source protection area has shaped its development priorities.
Agriculture thrives in the river valleys and hillsides. Key products include tea (especially selenium-rich varieties), walnuts, traditional Chinese medicine herbs, and greenhouse vegetables. Ankang is one of China's major tea-producing regions, with over 60,000 hectares of tea plantations.
Hydropower is a major industry. The Ankang Hydroelectric Dam on the Hanjiang River generates significant electricity for the regional grid. Smaller dams and solar installations are being developed.
Tourism is growing rapidly, centered on Yinghu Lake, Nangong Mountain, and the Hanjiang River Gallery. The city promotes itself as a "green lung" and water source for northern China, attracting environmentally conscious travelers.
Manufacturing includes food processing, tea processing, and traditional medicine production. The city is developing its pharmaceutical industry based on locally grown medicinal herbs.
Transportation improvements, including highway connections to Xi'an and Chengdu, are opening Ankang to greater economic development while maintaining environmental standards.