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In recent years, the Tibet Autonomous Region has exploited the preferential
treatment given by the Central Government to expand exports of industrial
products, mainly handicrafts, and livestock products. The region's
import and export volume hit US$130.29 million in 2000. While the
State foreign trade companies gain ground in increased imports and
exports, there is also development of border trade. At present,
the autonomous region has opened 28 ports for border trade, with
those on the Sino-Nepalese border enjoying the largest transaction
value. Major border trade ports include Zham and Burang. The ports
have also helped China's hinterland to expand trade with South Asia.
 During
the Ninth Five-Year Plan, Tibet achieved remarkable progress in
border trade, with the volume of border trade adding up to US$228.73
million or 413 time that of the previous five-year plan (US$44.59
million). In 2000, the imports and exports Tibet made through border
trade reached US$110 million, which was 18 time that of 1995 (US$5.79
million). Border trade volume has thus made up 78.44 percent of
the total imports and exports Tibet made in the year, and Tibet's
trade with Nepal accounted for over 95 percent of the total value
of Tibet's border trade.
The government of the Tibet Autonomous Region welcomes foreign businesses
to invest in such fields as energy, communications, architecture,
light and textile industries, electrical machinery, commerce, food
processing, aquatic breeding, processing, agriculture ,animal husbandry
and tourism. They are allowed to set up Sino-foreign joint ventures
or solely owned enterprises; or to conduct economic and technological
cooperation. Foreign businesses are especially welcome to invest
in long- or medium-range projects, and also in comprehensive development
projects with good potential. The government of the Tibet Autonomous
Region even supports individually and/or privately owned businesses
to become involved in joint ventures or cooperative enterprises
with foreign investors. They can also engage in processing with
supplied materials, samples or parts, and compensation trade, while
individuals living in the border areas can engage in border trade.
Foreign-funded enterprises, set up with the approval of government
departments of the Tibet Autonomous Region, are all entitled to
the preferential policies developed by the State and the regional
government.
Thus far, some 50 foreign-funded enterprises have set up in the
region with approval from the government of the Tibet Autonomous
Region, including 19 established in 1999. The investment involved
amounts to 1.02 billion Yuan and US$20 million. The investors came
from the United States, Japan, Germany, Malaysia, Nepal, Macao,
Hong Kong and elsewhere.
 Some
international organizations have started economic cooperation with
the Tibet Autonomous Region, and undertaken projects with international
aid. For example, the UN Development Program (UNDP) has, since 1981,
provided US$4 million in aid to boost construction of the Yangbajain
Geothermal Power Station. The UN World Food Program (UNWFP) aided
drought-relief and irrigation projects for the comprehensive development
of agriculture in the four counties (district) in the Lhasa River
Valley in 1989, all of which are now operating smoothly. The UN
Children's Fund (UNICEF) provided US$3.215 million to construct
10 projects, including the Health Station for Women and Children.
In 1995, the UNDP decided to provide US$822,000 to the four counties
of Nyalam, Dinggye, Tingyi and Gyirong in the Qomolangmo Nature
Reserve in western Tibet, for construction of agricultural projects,
housing, schools, wind power generation, household handicraft and
other projects.
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