Yadong County in southwest China’s Tibet Autonomous Region sits next to India and Bhutan. Many businesses make full use of geological closeness to the two countries by selling and buying goods at government-approved markets. This is border trade, which refers to residents living within 20 kilometers of international borders exchange goods and services at approved markets under certain amount.

Border trade between Yadong and India is usually done between May and October, while special trade fair is held in late August to accommodate businessmen from Bhutan. Medicinal raw materials and handicrafts from Yadong are most popular among foreign customers. Businesses in Yadong could make as much as two million yuan (302 thousand US dollars) in a year by doing border trade. According to local officials, border trade in Yadong amounted to 183 million yuan (27.6 million US dollars) in 2015.  

Border trade not just benefits businesses, but also people in poverty. Usually, businesses hire people living under the poverty line to carry goods for them, when businesses’ duty free quota is used up. Also, some businesses loan goods to poor people to sell; and poor people, acting like vendors, could pay back after selling the products. Moreover, local government provided subsidized loans to poor households to get into the border trade business.

With the help of border trade and other targeted poverty relief policies, Yadong County has got rid of its poverty label this year, as annual per capita disposable income of people in poverty reached 7,545 yuan (1,140 US dollars) in 2016.

The government doesn’t stop there. It has established a border trade base by building up warehouses and shops to further boost the business.