Claim: Beijing is rarely the second largest Chinese city.

Beijing -LRB- formerly romanised as Peking -RRB- is the capital of the People 's Republic of China and the world 's third most populous city proper . It is also one of the world 's most populous capital cities . The city , located in northern China , is governed as a direct-controlled municipality under the national government with 16 urban , suburban , and rural districts . Beijing Municipality is surrounded by Hebei Province with the exception of neighbouring Tianjin Municipality to the southeast ; together the three divisions form the Jingjinji metropolitan region and the national capital region of China .   As a city combining both modern and traditional architecture , Beijing is an ever-changing megacity rich in history but also truly modern , exemplified in its global influence in politics , business & economy , education , history , culture , language , music , sporting , architecture , civilization , fashion , art , entertainment , innovation and technology . Beijing is the second largest Chinese city by urban population after Shanghai and is the nation 's political , cultural , and educational centre . It is home to the headquarters of most of China 's largest state-owned companies , and is a major hub for the national highway , expressway , railway , and high-speed rail networks . The Beijing Capital International Airport has been the second busiest in the world by passenger traffic since 2010 , and , , the city 's subway network is the busiest and second longest in the world , after Shanghai 's subway system .   The city 's history dates back three millennia . As the last of the Four Great Ancient Capitals of China , Beijing has been the political centre of the country for much of the past eight centuries . With mountains surrounding the inland city on three sides , in addition to the old inner and outer city walls , Beijing was strategically poised and developed to be the residence of the emperor and thus was the perfect location for the imperial capital . Beijing was the largest city in the world by population for much of the second millennium A.D. . The city is renowned for its opulent palaces , temples , parks , gardens , tombs , walls and gates . Its art treasures and universities have made it centre of culture and art in China . Encyclopædia Britannica notes that `` few cities in the world have served for so long as the political headquarters and cultural centre of an area as immense as China . '' Beijing has seven UNESCO World Heritage Sites -- the Forbidden City , Temple of Heaven , Summer Palace , Ming Tombs , Zhoukoudian , as well as parts of the Great Wall and the Grand Canal , all popular locations for tourism . siheyuans , the city 's traditional housing style , and hutongs , the narrow alleys between siheyuans , are major tourist attractions and are common in urban Beijing . The city hosted the 2008 Summer Olympics and was chosen to host the 2022 Winter Olympics , making it the first city to ever host both Winter and Summer Olympics .   Many of Beijing 's 91 universities consistently rank among the best in China , of which Peking University and Tsinghua University are ranked in the top 60 universities of the world . In 2015 , 52 companies of the Fortune Global 500 company headquarters were located in Beijing , more than any other city in the world , including state-owned enterprises State Grid , China National Petroleum , and Sinopec Group , ranked 2nd , 3rd , and 4th , respectively . Beijing CBD is quickly becoming the center for Beijing 's economic expansion , rapid modernization , and radically changing skyline , with the ongoing or recently completed construction of multiple skyscrapers . Beijing 's Zhongguancun area is also known as China 's Silicon Valley and China 's center of innovation and technology entrepreneurship . According to the 2016 InterNations Expat Insider Survey , Beijing ranked first in Asia in the subcategory `` Personal Finance Index , '' a measure of expats ' salaries versus cost of living in the city . Expats live primarily in urban districts such as Dongcheng and Chaoyang in the east , or in suburban districts such as Shunyi .