is no problem at all, for example.
the only control characters below 32 (space) allowed in XML 1.0 are 9,10,13
in XML 1.1 (which has had very little active support anywhere) the control characters (except for 0) are allowed as numeric references 9but nit as character data) so if XML 1.1 support is OK you may be alright. saxon has a command line option to activate xml 1.1 parsing.
Note that as well as selecting an XML 1.1 parser you'll need to ensure that your stylesheet and result document specify <?xml version="1.1"
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