Located in the Yangtze River Delta in eastern China, Shanghai sits at the mouth of the Yangtze River in the middle portion of the Chinese coast. The municipality borders Jiangsu and Zhejiang Provinces to the west, and is bounded to the east by the East China Sea.

For centuries a major administrative, shipping, and trading town, Shanghai grew in importance in the 19th century due to European recognition of its favorable port location and economic potential. The city was one of several opened to foreign trade following the British victory over China in the first opium war and the subsequent 1842 Treaty of Nanking which allowed the establishment of the Shanghai International Settlement. The city then flourished as a center of commerce between east and west, and became the undisputed financial hub of the Asia Pacific in the 1930s. However, with the Communist Party takeover of the mainland in 1949, the city's international influence declined. In the 1990s, the economic reforms introduced by Deng Xiaoping resulted in an intense re-development of the city, aiding the return of finance and foreign investment to the city.

Shanghai is a popular tourist destination renowned for its historical landmarks such as The Bund, City God Temple and Yuyuan Garden, as well as the extensive and growing Lujiazui skyline. It has been described as the 'showpiece' of the booming economy of mainland China.