Chaoyang is located on the northeast and eastern sides of the center of the city (Dongcheng). In ancient times, this was where court officials and the aristocracy made their homes. Today, the two main diplomatic compounds are found here. Also in this portion of the city you will find the Sanlitun and the Chaoyang drinking districts, as well as the newly built Central Business District, which sprawls around the China World Trade Center. Chaoyang has always been one of the wealthier districts of Beijing. This good fortune is due, according to many, because of the district's good feng shi. In ancient times, all of China's cities were laid out according to strict feng shui principles.

As you stroll along Chang'an Avenue you will find Beijing's famous Silk Alley, this is perhaps the city's most famous open-air market. North of the avenue lies the tree-lined embassy district of Ritan Park. And farther north you come across the previously mentioned Sanlitun diplomatic district. Here, you will discover small cafes, bars, and a number of hotels and shopping plazas aimed at the international traveler.