In recent years Tibet has taken advantage of State preferential policies to actively expand exports of animal by-products, local traditional handicrafts and some other industrial products. In 1996, import and export trade volume totalled USS 105 million, a 48.5 percent increase over the previous year. Foreign trade volume has risen to 113 million yuan in 1998, and 130 million yuan in 2000. State foreign trade enterprises have expanded their operations and border trade markets have developed to some extent. Presently, 28 border markets of various kinds are open, mostly on the Sino-Nepalese border. Important border trade points such as Zam and Burang serve as China's doorway to South Asia.

As China deepens the reform of its foreign trade system, Tibet has also step by step established an operating mechanism for foreign trade that is compatible with current international norms. In 1994 the exchange rates for China's two currencies were combined to establish a single, managed, floating exchange rate system based on market supply and demand. Banks convert and sell foreign exchange; enterprise foreign exchange earnings go directly to the bank for conversion. State-owned enterprises engaged in foreign trade are being reformed to meet the demands of the modern business system. They are being transformed from the implementors of State plan to the managers of commodity import/export, producers and distributors meeting appropriate conditions have been given the power to do business with other countries, so as to with all possible speed develop internationalized, conglomerated enterprises combining industry and commerce.