Though Beijing has been doing business for more than 3,000 years and served as China’s capital since the reign of Kublai Khan, it never seems to stop growing at breakneck speeds. The first post-industrial city in mainland China, Beijing now houses more than 21 million people, from migrant laborers to executives of some of the world’s most profitable companies.

Following the city’s successful 2008 Olympic bid, the municipal government spent more than $40 billion on Beijing’s infrastructure, razing entire neighborhoods almost overnight to make room for office towers, hotels and apartments. Since then, real estate prices in the capital have continued to skyrocket, particularly in the 1.5-square-mile Central Business District.

Centered on the city’s Guomao area, the CBD houses more than 70 percent of overseas-funded companies, 90 percent of foreign press offices and the majority of embassies. Increasingly, the district is becoming known for its innovative entrepreneurs and high-growth startup companies, backed by a large community of both Chinese and foreign venture capital firms.

Beijing World Trade Center III © Majian | Dreamstime.com

Large-scale development of the CBD resulted in architectural landmarks like the China World Trade Center Tower III, China Central Television headquarters and a brand-new Park Hyatt. Despite a cooling real estate market around the country, office space in Beijing’s CBD has become the fourth-most expensive in the world, renting for an average of $1,412 per square meter per year.

Though China’s major stock exchanges are located in Shanghai and Shenzhen, Beijing is an important financial regulation center. The capital’s 40-block Financial Street accounts for more than half of the country’s financial assets and provides a collaborative environment for more than 1,500 financial institutions, including People’s Bank of China, Goldman Sachs, JPMorgan and Bank of America.

Last year, Beijing overtook Tokyo for the first time in headquartering the most Fortune 500 companies in the world (a total of 48). But according to the city’s Municipal Commission of Commerce, that isn’t enough: Beijing hopes to draw another 15 foreign multinational companies to set up their regional headquarters in the city in 2014.

Of course, Beijing’s rapid expansion brought with it many problems, among them its infamous air pollution, which reached a record-breaking 500 micrograms per cubic meter — about 20 times as high as the level considered safe by the World Health Organization — earlier this year. As Beijingers become more outraged by the city’s air quality, government officials have promised to rid the capital of its worst polluters.

Coal burning continues to power much of Beijing’s industry, though the city has been converting coal-fired power stations to burn natural gas since 2012. As part of China’s “war against pollution,” Premier Li Keqiang said the country will shut down 50,000 coal furnaces and cut steel production by 27 million tons this year.

Beijing Capital Steel, once one of the city’s largest employers and its single biggest polluter, has gradually relocated most of its operations to nearby Hebei Province. In addition, small commodity markets, like the wholesale clothes malls that draw tens of thousands of migrant workers, have also moved to Hebei.

Since 2011, developers have accelerated infrastructure projects in the regions around Beijing, hoping to ease pollution and population pressure in the capital. However, many of the residents of these outlying areas continue to travel to Beijing for work each day. Vice Mayor Li Shixiang has said that, looking forward, the capital will be more selective in the industries it supports, promoting highend, creative and low-carbon businesses over manufacturing.

The shift reflects a broader goal by China’s government to transform its massive economy’s reliance on investment and exports to one that allows consumption and services to play a bigger role. But in his work report to the National People’s Congress in March, Premier Li revealed the government will continue to rely on investment in infrastructure and real estate to reach its targeted growth rate of 7.5 percent.

In the capital, affordable housing projects remain a priority, with 50,000 units scheduled to become available this year. And authorities approved the construction of a new $11.2 billion airport to ease congestion at Beijing Capital International Airport, currently the second-busiest airport in the world. For now at least, Beijing is willing to do whatever it takes to keep its economy speeding along.

Things to Do in Beijing

Most visitors’ first sightseeing stop in Beijing is The Forbidden City, and for good reason — you could spend days exploring the imperial palace’s purported 9,999 rooms (traditional counting includes the space between columns as a room) and still not see the whole thing. Though the sheer size of the former emperor’s residence is daunting, even a short time spent walking the halls and courtyards gives you a sense of the opulence of court life in imperial China.

Hanging above the southern gate of The Forbidden City, Mao Zedong’s famous mug keeps an eye on Tiananmen Square, the world’s largest public square and site of the 1989 student protests. These days, there’s little to do in the square but fly a kite or attend the dawn flag-raising ceremony; however, if you’re up early, hop in line at Chairman Mao’s Mausoleum to see the Great Helmsman’s embalmed body lying in state.

Biking in a hutong © Grace0612 | Dreamstime.com

Most hotels and guesthouses rent bicycles for wandering the hutongs (narrow alleys) and smaller historical sites of the Dongcheng District. One of the area’s most scenic cycles is the string of small lakes known as the Back Lakes, where Beijingers come to boat or fish in summer and skate in winter. Combine an afternoon ride with shopping for local artists’ wares near Qianhai Lake or a Chinese cooking class at Black Sesame Kitchen.

South of Tiananmen Square, the Temple of Heaven was once the site for imperial sacrifices to the gods. Believed to be the meeting point between heaven and earth, the vast park houses blue-roofed buildings and marble altars erected during the Ming Dynasty. In summer, Qing Dynasty royalty retreated to the shores of Kunming Lake in northwest Beijing, where they constructed the Summer Palace. The 700-acre park’s pagodas, temples and gardens make for a pleasant stroll, particularly on balmy days.

Not all of the city’s architectural marvels are ancient: Herzog & de Meuron’s National Stadium (“Bird’s Nest”) and the neighboring National Aquatics Center (“Water Cube”), purpose-built for the 2008 Olympics, are must-sees for design buffs. Olympic hopefuls can even make a splash inside the Water Cube, which was transformed into Asia’s largest water park in 2010. Travelers spending time in Beijing’s Central Business District won’t be able to miss CCTV Headquarters, the Rem Koolhaas-designed building popularly known as “Big Pants.”

There are many ways to experience the remains of China’s 5,500-mile-long Great Wall; the quickest and most popular is at Badaling, but you’ll be sharing your photo op with thousands of other tourists. If you have a full day, opt for a tour of the wall’s most vertiginous stretch at Simatai, or walk to Simatai (about four hours) from the relatively unspoiled site at Jinshanling.

National Aquatics Center, known as the Water Cube © Hupeng | Dreamstime.com

Checking In With Carl Setzer

Owner, Great Leap Brewing

How is the Beijing business climate for a Western entrepreneur?
The business climate for Western entrepreneurs in China varies from region to region, but I’d say that all in all China is open to Western commercial investment as long as that investment is done within the framework of the legal infrastructure provided to expats. It starts to get sticky and complicated when expats either don’t understand the legal rights they are provided by the Chinese government and take bad advice from local business partners who are looking to gain access to IP through less than savory means; or understand the legal infrastructure and attempt to obfuscate said laws for their own illicit financial gain.

What dining and nightlife spots should a first-time visitor make time for?
The famous ones are places like Quan Ju De and Da Dong for roast Beijing duck; and Mix, Vic’s and Chocolate for nightlife, but I think a lot has changed in Beijing over the past decade. Nightlife isn’t just a handful of one-dimensional clubs, and dining has grown beyond the boundaries of expectation for a city like Beijing. If you are looking for a really local experience, you should head to one of the hutong district’s many restaurants that roast an entire lamb leg over charcoal, plop the entire apparatus down on your table and hand you comically long knives and forks to carve away.

How has Beijing changed since you first moved here?
The biggest change is the area I’m most familiar with. When I first came to Beijing, it was right in the middle of its 2008 Olympics hangover. A handful, and by a handful I mean one or two, of distributors had imported some European and American craft beers to make some quick cash off the Olympic punter crowd. The city really didn’t have much variety in terms of brands of beer, and what was available was questionably past due. When Great Leap finally opened in 2010, the city had three other craft beer bottle shop mainstays and no other brewpubs, minus the usual suspects of Bavarian styles. Since 2011, we’ve seen dozens of craft beer bars open (and close) in Beijing, as well as the addition of four to five other local craft beer brands and more in the works. Beijing is quickly becoming a place that identifies itself as a craft beer city.

Beijing: Just the Facts

Time Zone: GMT + 8
Phone Code: Country code: 86 City code: 10
Currency: Renminbi yuan
Entry/Exit Requirements: U.S. citizens must have a passport valid for six months and must obtain a visa to enter China. Purchase one-month tourist or business visas (each $130) in your country of residence.
Official Language: Mandarin
Key Industries: Automobiles, chemicals, electronics, finance, household appliances, machinery, real estate, retail, tourism

Beijing Info to Go

Beijing Capital International Airport is located about 12 miles north of downtown Beijing. A taxi to the center of the city costs about $16 and takes 40 minutes to an hour, depending on traffic. Look for the clearly marked taxi line just outside the terminal and insist the driver use the meter. If you’re traveling light, opt for the new Capital Airport Subway Line, which travels from the airport to Dongzhimen Station in central Beijing in 20 minutes and costs $4.

Where to Stay in Beijing

DuGe Courtyard Boutique Hotel Custom-made furniture, antique carpets and flickering lanterns transport guests at this courtyard house to the life of an 18th-century nobleman. 26 Qian Yuan En Si Hutong, Dongcheng District $$$

Park Hyatt Beijing A recent addition to the Central Business District, the 66-floor Park Hyatt features spectacular views and a rooftop swimming pool. 2 Jianguomenwai Dajie, Chaoyang District $$$$

The Peninsula Beijing Impeccable service and one of the city’s best spas draw luxury travelers to this old favorite near the Forbidden City. 8 Goldfish Lane, Wangfujing, Dongcheng District $$$

Restaurants in Beijing

Capital M Australian- and Mediterranean-inspired comfort food is served amid vibrant interiors at this restaurant overlooking Tiananmen Square. 2 Qianmen Pedestrian St., Dongcheng District $$$$

Li Qun Roast Duck Restaurant Hidden among the courtyard homes of a hutong neighborhood, family-run Li Qun is a popular choice for Beijing’s signature dish. 11 Beixiangfeng Hutong, Zhengyi Lu, Dongcheng District $$

Yotsuba Sit at the counter to watch the Japanese master deftly crafting the city’s most authentic sushi in this closet-sized restaurant. 2 Xinyuan Xili Zhongjie, Building 2, Chaoyang District $$$