Border Trade Flourishes in Zham

Walking down the main street in Zham , one is amazed to see crimson small buildings shaded by emerald trees. The street is flanked here and there by hotels, business buildings, post offices, telecom offices, and Tibetan compatriots” reception halls.

The town, perched at the China-Nepal border, covers an area of 70 square km, slanting at an angle of 30-45 degrees. With an elevation of 2,200 meters, it is the only State-level land port in Tibet. The population is primarily from the Xarba ethnic group, totaling 1,000.

On the first floor of the small, crimson buildings are stores selling merchandise from India and Nepal such as perfume, cosmetics and knitwear, and those from inland China such as toys, garments, shoes, and sundry goods. Most of the people engaged in business have increased their assets from 1,000-2,000 yuan to several million yuan.

Goods imported through Zham include rice, wheat flour, pepper and perfume, while goods exported through the border port include sheep wool, tea, salt and Tibetan medicine. In 1998, the cross-border trade volume totaled 32,061 tons, valued at 337 million yuan.

Flourishing border trade has attracted an influx of foreign and inland business people. There are some 300 businesses set up in the town, including some 40 operated by those from Nepal.

China and Nepal are linked at Zham by the Friendship Bridge. Early each morning, people laden with goods cross the bridge for business purpose. At this time, the Zham Market, 8.7 km from the Friendship Bridge, is already bustling with hawkers and peddlers.

“This! Price down 5 percent, OK?” Business people from both sides bargain in broken English while holding calculators in their hands. “See? 5 percent! You agree? I buy.”

According to an agreement between the governments of China and Nepal, people from both countries enjoy the freedom to cross their common border up to 30 km. And they are exempt from any procedures. Thanks to efforts made by both governments seven years ago, a free trade market came into being.

Goods sold in the market seem lackluster in variety. They are mostly goods for daily use, including leather shoes, soaps, torches, household electrical appliances, shirts and electric rice cookers. However, these goods are enticing to the Nepalese, as they are sold at an affordable price.

Yin Yan, a business woman from Sichuan Province, has been doing business at the bridgehead market for years. “Five years ago, this market was open only on Saturday on the Chinese side, which is Sunday in Nepal,” Yin said.

“But there has been rapid development in the last two years, and the market now opens seven days a week. We make as much as 6,000 Nepalese Rupee or 800 yuan RMB.”

According to an official with the Zham Town Office, the bridgehead market has been well received by both countries. “The Chinese side has opened more than 50 stores, which are visited by up to 600 people from Nepal every day,” he added.

Residents of Zham, who used to live on farming and livestock breeding, have greatly benefitted from the border trade. Most of the 304 households here have plunged into commercial business, and there are 30 households which have bought trucks to do transport business.

With money thus rolling in, the locals began building new houses for themselves. As excessive rainfall in this part of the world often causes landslides, building houses here is difficult. Money spent on consolidating the foundations often makes up half the construction cost.

Sangmo, Head of the Zham Village, spent some 2 million yuan building a house composed of some 50 rooms arranged according to modern standards.