Cookiescompanion -- traveling in China around CNY is not ideal -- it's like traveling in the US or Europe during Christmas and New Year's. Yes, lots of things will be closed. I would stick to Beijing or Shanghai as they have larger foreign (expat) populations and thus will have more restaurants that will continue to stay open. Of the two, I would probably pick Beijing as there are more tourist sites that are likely to be open -- Tian'anmen Square won't close, for example. Neither will the parks, or Houhai. Or (I think) the Great Wall.

When I lived in Beijing, I was always afraid of running out of money during the holiday, when banks are closed. So, yes, I would get out extra cash to cover Chinese New Year eve and day. If you are staying in a Western hotel, you are guaranteed to find food or water there -- it may not be the best or cheapest food or water but it will be there. A few shops and restaurants will also probably be open (mostly those that cater to expats).

Be prepared for constant crackling of fire crackers!