Surrounded by hills and tea plantations and sat beside the mystical Xi Hu (West Lake), Hangzhou is one of China's most cherished cities. A serene retreat for Emperors and Communist apparatchiks alike, West Lake has inspired generations of writers, painters and poets and even yielded the city Chinese eulogy: ‘In heaven there is paradise, on earth there is Suzhou and Hangzhou.'

Situated 150km (93 miles) south of Shanghai at the southern end of the ancient Beijing-Hangzhou Grand Canal, Hangzhou's natural assets have historically boasted a thriving tourism industry. In 2006, it hosted the six-month-long World Leisure Expo in the outlying district of Xiaoshan.

West Lake is the focal point of the city, flanked by numerous parks, pagodas, temples and bridges - each intrinsically rich in both history and intrigue. Small wooden boats sail across its waters by day and in the evening elderly locals sing folk songs and play traditional instruments in the adjacent parks. The views across the lake at sunset and sunrise are magnificent.

Hangzhou is also a famous tea-growing centre and tours can be made to the nearby Dragon Well, which bestowed the name for the city's most famous export: Longjing tea.

Tourism aside, Hangzhou is a rapidly growing, and increasingly affluent, commercial city. Its strong economic growth is underpinned by a large concentration of private enterprises and status as a complementary location to near neighbour Shanghai for foreign direct investment.

In both 2004 and 2005, Hangzhou was rated by Forbes China as the nation's best city to do business. Tapping into this rising urban affluence are foreign retailers such as Dolce & Gabbana, Armani, Hermes, and Adidas, while McDonald's, Pizza Hut, Starbucks and Haagen Dazs all occupy prime locations.