Taiyuan is the capital city of Shanxi Province, located in north China about 550 km southwest of Beijing. The city has a long history dating back to the Spring & Autumn Period. In ancient times, it was known as an important military fortress of northern China. The city has been the birthplace of many emperors, and is sometimes referred to as "Dragon City" for that reason. A label that Shanxi has worn for many years is "Sea of Coal" – a reference to the province's vast deposits of coal which have been the industrial backbone of Taiyuan from the 1950s onwards. Coal is still vitally important, with sales revenues reaching 13.17 billion RMB in 2006, but Taiyuan's industrial profile is more sophisticated these days, with metallurgy, machinery manufacture and chemicals all contributing in a big way to the city's 11.5% economic growth rate in 2006.
The city borders on the Taihang Mountains to the east and the Luliang Mountains to the west, while the Fenhe River flows through the city providing a pleasant natural setting. However, the weather is not so forgiving, with frigid winters and notoriously windy spring weather. Locals will tell all travelers that the best time to visit the city is in the autumn, when the leaves are changing, the weather is pleasantly cool, and the city is the venue for the Taiyuan International Wheat Product Festivaland Shanxi Taiyuan International Folk Festival.
As a major transportation hub, the city is easily reached by air and land. Currently, the city is revamping its airport in order to serve as a supplementary gateway in 2008 for the Beijing Olympics. Most domestic travelers arrive in Taiyuan by train, but bus travel is also possible. Much of its local transportation relies heavily on buses and taxis.
Since the city has been re-inventing itself, many travelers are heading to Taiyuan not only for business but also for pleasure. It now attracts more visitors from outside of China who come to see the renowned Jinci Temple, an ancient and well-preserved complex which is slated for World Heritage status. There is also the ancient Chongshan Monastery which houses the enchanting Goddess of Mercy, and a fine collection of ancient religious sculpture in the Tianlongshan Grottoes, some of it as old as 1700 years. The city is also home to one of China's best new museums, the Shanxi Museum, which provides a fine and well-curated overview of the rich historic and artistic legacy of the Shanxi region. No-one with an interest in Chinese history should miss the opportunity of visiting this excellent new institution.
Visitors roaming Taiyuan will come to appreciate the hearty local Shanxi cuisine, like steamed dumplings, sausages, mutton soup, and Shanxi noodles, which are particularly well-loved, and are delicious with some of the local vinegar. The locals will also proudly extol the qualities of Shanxi wine. By all means try it, but don't expect a delicate table wine in the European style: the Chinese word for wine ("jiu") is a generic word for all forms of alcohol from grape wine to tequila. Shanxi "wine" is actually grain spirit: it's an acquired taste but a fine social lubricant! Two famous Shanxi "wine" brands are Fen Jiu and Zhuye Qing, and you can find out more about them at the Shanxi Wine Beverage Exhibition & Wine Culture Festival.

Taiyuan sits just north of the Loess Plateau in Shanxi Province, about 110°30' east and 113°9' north, and is fringed on three sides by mountains. The climate is dry: the city receives about 450 mm (18 inches) of rain a year, and no snow in winter, despite the January average minimums of -14 C (7F). Summers are warm, with July average maximums of 31 C (88F). 

Taiyuan covers nearly 7000 square kilometers, 177 square kilometers of which is urban. It is a relatively small city, with a population of around 3.5 million, over two thirds of which (2.8 million) live in the urban areas.

History

As the capital of Shanxi Province, Taiyuan was referred to as Jinyang during ancient times or Bing for short. The ancient city's history dates back over 2500 years with its emergence during the Spring and Autumn Period.
In terms of Chinese history, the city has played many roles including a capital city during the Warring States Period, a prefecture during the Qin Period, and a state during the Western Han. During the Sixteen Kingdoms and Northern Southern Dynasties, the city served as a capital for the self-governed state.
During the Sui dynasty, Jinyang (ancient Taiyuan) was the third largest city in all of Imperial China. During the Five Dynasties, Taiyuan was the capital of Later Tang, Later Jin, Later Han and Northern Han. However, the city experienced its pivotal change during the Qing dynasty when Taiyuan developed as a key commercial and handicraft center. In the 20th century, the city became the producer of much of the coal that supported the rapid industrial growth that the country experienced; hence, Taiyuan became an industrial capital of northeastern China.