A: The business relationship between Tibet and bordering India, Nepal, Myanmar, Bhutan and Sikkim dates far back in history, and its foreign trade sector has seen marked progress since Tibet's democratic reform. The border trade, originally carried out on a barter basis, has progressed into one of currency-settlement and in various modes such as processing trade, ocean trade, Sino-foreign equity and contractual joint ventures and transhipment.
In recent years Tibet Autonomous Region has taken full advantage of the preferential policies granted by the state to promote its export of industrial products, mainly ethic handicrafts, and livestock products. As a result, its state-owned foreign trade enterprises and border trade have undergone extensive development. There are at present 28 border markets in Tibet, the main centers being in Zham and Burang.
The development of foreign trade has brought great benefits to Tibet and its people. The region now has 152 foreign trade enterprises, including 65 overseas-funded enterprises and 41 enterprises licensed to engage in ocean trade, all of which may also engage in border trade. There are moreover 22 foreign trade and economic cooperation enterprises registered in Tibet. In 1998 Tibet's import and export volume reached 936 million yuan.
Over the past 20 years the region's exports have risen at a rate much higher than of GNP growth. The export volume of Tibet rocketed from 2.72 million yuan in 1979 to 610 million yuan in 1998-a 224-fold increase, and a favorable trade balance has been maintained in recent years. In 1995 Tibet achieved an export surplus for the first time, and in 1998 its export volume accounted for 65 percent of the region's total volume of imports and exports, with a favorable balance of 330 million yuan.
The structure of foreign trade in Tibet has also undergone dramatic changes. Since 1985 the region has shifted its focus from overland border trade to ocean trade. Livestock products and other primary products constitute the lion's share of Tibet's exports.