Xuchang's economy has traditionally relied on agriculture and light manufacturing. The city is a major producer of tobacco products, textiles, and electrical equipment.
The retail sector has become a surprising highlight. Pang Dong Lai, a Xuchang-based retail chain, has become a national phenomenon known for employee-friendly policies and exceptional customer service.
The city is also a center for renewable energy equipment manufacturing, including wind turbines and solar panels. The Yanling County area is known for horticulture, especially wax plum (chimonanthus) production.