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Xinyuan, nestled within the vast expanse of Qinghai Province, China, occupies a geographically significant position on the northeastern edge of the Qaidam Basin. Located at approximately 37.3000° latitude and 99.0000° longitude, the city sits at a considerable elevation of around 3,000 meters (9,842 feet) above sea level, contributing to a high-altitude, semi-arid climate. The surrounding landscape is dominated by the rugged Altai Mountains to the north and west, providing a dramatic backdrop and influencing regional wind patterns. The Qaidam Basin itself is a large endorheic basin, meaning it lacks an outlet to the ocean, which can trap pollutants under certain meteorological conditions. While Xinyuan isn't directly adjacent to a major river, groundwater resources are present, impacting local agriculture. The urban character is relatively small-scale, reflecting Xinyuan’s modest population of 16,585. The city serves as a local administrative and commercial hub for the surrounding rural communities engaged primarily in livestock farming and limited agricultural production. The urban–rural gradient is sharp, transitioning quickly from the built environment to extensive grasslands and sparse settlements. Industrial activity is limited, primarily focused on processing local agricultural products and supporting mining operations further within the basin. This location, combined with the basin's topography, can exacerbate air quality challenges, particularly during periods of temperature inversion and reduced wind speeds, as pollutants tend to accumulate rather than disperse.

Xinyuan’s air quality experiences a distinct seasonal cycle heavily influenced by its high-altitude climate and the broader meteorological patterns of the Tibetan Plateau. Winters (November – February) are typically the most challenging period. Cold air masses frequently settle, leading to strong temperature inversions where a layer of warm air traps cooler air near the ground, preventing vertical mixing and concentrating pollutants. Reduced sunlight hours also limit photochemical breakdown of pollutants. Spring (March – May) brings a gradual improvement as temperatures rise and wind speeds increase, though dust storms originating from the Gobi Desert can significantly degrade air quality during this transition. Summers (June – August) are generally the most favourable period, with stronger winds and increased precipitation helping to disperse pollutants. However, occasional monsoon rains can lead to increased humidity and localized fog, which can temporarily trap pollutants. Autumn (September – October) sees a return to more stable atmospheric conditions, with decreasing temperatures and a gradual increase in the likelihood of temperature inversions, mirroring the winter pattern. Sensitive groups, including children, the elderly, and individuals with respiratory conditions, should exercise caution during winter and early spring, limiting outdoor activity on days with visibly reduced air quality. During the summer months, while generally better, those with allergies should be mindful of pollen levels and occasional fog events. The dry climate throughout the year contributes to the prevalence of dust and particulate matter, making hydration and respiratory protection advisable year-round.