This is a good answer. 5th consecutive year ranked top from Forbes’ best places to do business in China list.

Taking from their 2005 report:

The thriving eastern China city of Hangzhou’s lush hills and scenic lake plus a pro-growth business environment put it atop FORBES CHINA’s rankings of the country’s best places to do business for the second year in a row. The capital of Zhejiang province, Hangzhou is home to Internet firms including Alibaba, which just landed a billion-dollar-plus investment from Yahoo for a 40% stake. Several key players in China’s thriving textile trade are based there as well.

The other top places are also surrounding Hangzhou: Shanghai, Wuxie, Nanjing, Ningbo, Beijing.