The Development of Mainland China`s Border Trade

Abstract

Mainland China’s border areas have long suffered from economic stagnation due to geographical disadvantages and political, diplomatic, and security reasons. With recent reform and opening-up policies, local governments have been granted greater autonomy and border areas have had more opportunities to promote their own trade. In addition, border provinces have also benefitted from the good-neighbor policy that has been adopted by economic reform. Generally speaking, trade in mainland China’s border provinces has had three major characteristics. First, the major trading partners have been neighboring countries. Second, border trading patterns have been quite different from the general national pattern. Third, border provinces’ trade volumes with their neighboring countries have depended on the latter’s economic capabilities.