Western Xia Dynasty economy

For a long time, a great part of the West Xia economy was still based on nomad economy with large cattle herds on the wide grassland plains within and west of the great Yellow River bend. More to the south of modern Shaanxi area, where the part of the Chinese population was greater than in the west, agriculture was the main economical tradition. The largest part of the territory was owned by the state or the emperor and was given to farming peasants who in turn had to pay taxes. Most other parts belonged to the Tangut aristocracy and to state officials, but also to Buddhist and Daoist monasteries. Only few peasants and private persons owned larger parts of land, but it was allowed to open up and to new land in mountainous and remote areas.
The rulers Li Jiqian and Li Deming supported the construction of irrigation canals that were crucial for the development of a qualified agriculture in arid areas, especially around the capital Xingqing (modern Yinchuan /Ningxia). One of these cannels is called "Royal cannel of the Li [clan]". The produced grain was stored in imperial granaries. Although far the greatest part of the peasants were Chinese, in the course of time more and more Tangut or other Non-Chinese engaged in farming instead of cattle breeding. A very important and successful economical sphere was the production of woolen products, basing on the large herds. Wall paintings in stone caves depict scenes of daily life and of artisanry and craftsmanship. Iron production was well developed - partially due to the permanent warfare with the neighboring countries - as well as pottery. West Xia porcelain did not have the same quality as Song porcelain, but it shows a unique type of decoration.
Warfare activities were never an earnest impediment for international trade between the Tangut empire and its neighbors. There existed special frontiers markets to supply the needs of the own country and to export national products. A special kind of exchange of goods were the so-called tributary presents that the West Xia presented to the mightier neighbors, either the Liao, Jin, or Song. In turn, the Xia embassadors and trade people obtained goods from China, like silk, gauze, incense and medicine, porcelain, lacquer ware, ginger, and so on. Except of kettle and depending products like wool, fabric, felt, and leather, the Xia empire exported salt (later prohibited for Chinese import), jade, honey, rhubarb, musk, and herbs. Although barter trade was common an wide areas, the Xia emperors had casted their own.

Reference websites : http://www.e-westchina.net