 Yunnan’s attractions are not only limited to its spectacular scenery and colorful ethnic customs, but also its immense development potential. The West China Development Project aims to build Yunnan into the international gateway to South Asia, with a strong green economy and a diversified ethnic culture.
 It is hoped these three targets will be achieved with the help of the province’s many advantages including a varied climate and geography, and many natural resources. The province will focus on the development of three main industries, the reliable tobacco industry, the mineral resources industry and the tourism industry. It is hoped that niche markets for these industries can be captured in both the domestic and international markets. The province also aims to improve the present infrastructure of the region, such as roads and railways.
To build up a green economy the government hopes to draw on its untapped biological resources, such as rare plants and flowers, and develop them into a new industry. The realization of this goal could take 10 to 20 years, but it is hoped that once this is achieved, Yunnan will become a province with a beautiful natural environment, favorable living conditions and a prosperous economy.
Green is the most prevalent colour in Yunnan, and the basis of the province’s wealth. The word “green” contains two layers of meaning: firstly that Yunnan’s economic growth of the province should be based on the development of its natural resources, and secondly that this development must be done in a “green” or environmentally friendly manner.
 Yunnan’s government is undertaking a massive reforestation project, to replant bare hills and return farmlands to nature. Some of the highly productive farms will continue to be used for agricultural production, while others will be transformed into lucrative fruit orchards. All farmers will be encouraged to combine environmental protection with agricultural efficiency, with 50,000 farmers already beginning on this road.
Yunnan Agricultural University’s plant pathology laboratory is the key research center for the province. With the province’s rich biological resources the lab has conducted successful research into the effects of disease on many plants.
 The Xishuangbanna region of Yunnan is an oasis on the tropic of cancer. It is a well－protected and ecologically diverse region with a perfectly preserved gene pool for scientific research. These advantages mean the Xishuangbanna region is the perfect area to develop strong green industries.
The Baiguozhou Food Industry Group is a high－tech fruit planting, processing and marketing company. These main products include tropical fruit juices, juice concentrate, cocktail juices and pure fruit juice drinks.
 Yunnan’s farmers are still one of the lowest income groups in the province. In order to improve their situation the government is trying to adjust the agricultural structure of the region. On the one hand they are encouraging the farmers to increase production on their existing land, while also suggesting farmers make use of their own yards to raise animals or additional cash crops.
The impact from the introduction of material civilization to western China has been immense. Wherever the wave of modern civilization reaches, aboriginal cultures and the environment are affected. Sadly, in some regions of China, indigenous cultures are now only practiced during certain festivals throughout the year. Yunnan’s people realize the importance of preserving their cultures.
Another characteristic of Yunnan is its long history and rich cultural diversity. The oldest known human civilization on the Asian continent is the Yuanmo people, who lived in Yunnan 1.7 million years ago. This long history has led to a rich cultural province, with 26 different nationalities. These ethnic groups have been well protected and maintained over the years, and are now an industry in themselves. After 10 to 15 years, this cultural industry should start to show significant growth and economic return.
 Xinhua village is located to the northwest of Phoenix Mountain in Heqing County. This town is famous for its handmade silver and bronze ornaments and jewelry, with almost every family in the village having a workshop producing the elaborate handicrafts. The handicrafts are labor intensive, being produced in the traditional way by more than 1,200 people in the village. Xinhua’s reputation is spreading not only due to this unique craft, but also because of the magnificent scenery of the Black Dragon Pool at the foot of Phoenix Mountain and its colourful ethnic cultures.
The old city of Lijiang, located in northwest Yunnan, has been developed into a historic attraction through careful protection. Here both Han and Naxi cultures are well preserved. Some western missionaries who came to the area in the early 20th century believed the more isolated the ethnic group, the easier it would be to assimilate and “civilize.” However, the Naxi ethnic group, which number at about 300,000 people, have well maintained their own identity while also accepting some Han influence.
 On December the 4th 1997 the United Nations declared the old city of Lijiang a World Cultural Heritage Site. Lijiang is the only city in Yunnan where all 26 ethnic groups are living and practicing their traditional customs.
In Naxi language, the old city of Lijiang is called “gongbenzhi.” “Gongben” means warehouse and “zhi” is a market.
The old city of Lijiang lies on the northwest plateau of Yunnan at an altitude of 2,400 meters. To the north of the city is the Jade Snow Dragon Mountain, which is the second largest mountain in Yunnan at 5,576 meters. Lijiang has a constant supply of fresh mountain water from these surrounding hills, with a series of rivers and channels running through the city. The city has many narrow alleyway paved with brown and white stones which radiate from a central square. Walking on these stone alleys, roads and bridges are the only transportation methods of the old city, resulting in a relaxed and peaceful atmosphere.
 A new highway network will be built in Yunnan in the next 10 years. When this plan is fulfilled, the transportation system will be a good platform for the development of western China. Any industries established from now on will be based on this transportation main line as an axis. When this axis is extended into underdeveloped areas, both rural people and the industries will benefit.
 Yunnan’s geographic location has made it an important link between mainland of China and Southeast Asia. In the past the province was also an essential part of the famous Silk Road, which was the first contact the Chinese civilization had with the rest of the world.
Today Yunnan province is still using its geographic location to its advantage. With plans to build a road network to connect the region to other provinces such as Tibet, neighboring countries, and improve accessibility to seaports. Last year the government invested 1.2 billion US dollars on 2,000 kilometers of roads as part of the new network.
The investment environment in Yunnan today is very healthy. The government has relaxed restrictions on foreign investment, with companies now having more freedom to set－up and conduct business on their own terms. Consequently the province now has more financial investment, technology and educated people, both local and international, moving to the region.
An important goal of the West Railway construction is to speed up transportation between East and West China. Therefore, not only have speed restrictions been raised, but also many east－west rail lines are being upgraded and constructed. One line, the Pan－Asia railway will make Western China a perfect trade platform between the Chinese mainland and Southeast Asia.
With the completion of this Pan－Asia railway, China will be easily connected to Thailand, Burma and India, with Yunnan becoming an important passageway for the southwest.
Yunnan province is rapidly developing its sea and air infrastructure, with the construction of many airports and harbors. The government plans to establish an international shipping route from Lancangjiang River to Meigonghe River, which will aid the economic development of the Meigonghe area. The long－term aim is to have an open trade channel between china and the outside world, with highly efficient land, air and sea transportation.
 A Chinese economist recently commented that “the west needs a powerful push”, meaning that the region needs further reform and opening up. The Western China forum which recently closed in Sichuan, concluded that the west could become a perfect example of the positive benefits of development. And from what we have seen of Yunnan, the beautiful natural scenery, the fertile field and warm and friendly people, this province certainly has the potential to lead Western China’s development.
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