Just asked a local tire shop, they said 16" wheel will not clear.
However, they also said "anything that is taller or shorter will throw off your 4WD system", referring to my 215/60R16. Given that the actual circumference difference between 225/50R17 and those are about 1%, which I mentioned to them, I don't see how it would influence 4WD.
Basically I think they're making an uneducated guess, so I'm a little doubtful they've actually tried to fit 16" wheels to X1. Will ask my mechanic, I guess.
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