Lhasa is the capital of Tibet, located at an altitude of 3,650 meters in the center of the Tibetan Plateau as one of the world’s highest cities. People believe in Tibetan Buddhism and Lhasa is the traditional seat of the Dalai Lama. The Potala and Norbulingka palaces (UNESCO World Heritage Sites) are regarded as the holiest center in Tibet.

Tourism industry brings significant business, building on the attractiveness of the Potala Palace, the spectacular Himalayan landscape, and the many wild plants and animals native to the high altitude of Central Asia. Every August the Shoton Festival (Xuedun Festival, Tibetan Drama Festival) is held in Lhasa, one of Tibet's biggest traditional festivals held since the 7th century.

Many of Lhasa's rural residents practice traditional agriculture and farming, planting highland barley and winter wheat. The resources of water conservancy, geothermal heating, solar energy and various mines are abundant.

Lhasa is also the traditional and current hub of the Tibetan trading network. The highest plateau railway in the world, the Qinghai-Tibet Railway (Qingzang Railway) connects Xining, Qinghai Province, to Lhasa, Tibet. It is the first to connect Tibet with other parts of China.