The 23-year-old has been linked with a move away from the Bundesliga with Arsenal and Liverpool reportedly interested.
Xhaka was also linked with Bayern Munich in the winter transfer window, and the Switzerland international maintains he would be open to leaving Monchengladbach.
"I can only speak for myself, but at my age I would never go to China, for no money in the world," Xhaka told Sport Bild.
"The sporting perspective and everything else would need to be right. Honestly, you want experience such a positive vibe, such a togetherness in football often. That counts too.
"And should I one day want to make the next step, it also has to be an improvement. But true, it's difficult to say no when Manchester City want you and you could play there. That much I have to admit. But I certainly not the only one."