One of the world's largest cities, Shanghai is China's largest city and it's main commercial and industrial center. Shanghai owes much of its economic importance to its excellent transportation links. Its port is the outlet for the Grand Canal system of the Yangtze River Basin. The city's extensive port facilities, which must be regularly dredged to accommodate oceangoing vessels, handle coastal trade as well as the bulk of China's foreign shipping. A dense local network of canals facilitates the transport of farm produce from the rural parts of the municipality to the city center.
Shanghai is also a major rail junction with connections to North and South China.
The city has long been known as China's leading textile manufacturing center. Other major manufactures include steel, electrical equipment, chemicals, motor vehicles, and paper. Also important are shipbuilding, petroleum refining, printing, and publishing. It is located on the Han River, near the Yellow Sea port of Inch'on. Situated near North Korea, it is the largest city and chief commercial, manufacturing, and cultural center of South Korea.