At the westernmost end of China, Tibet Autonomous Region is the least urbanized area in China, with an economy that depends upon agriculture, financing from the central government, and a lush tourism industry. Economic development in the area is stunted by low population density, high transportation costs, and high exploration costs. While Tibet could potentially be a large producer of natural resources and raw materials, there have been few advances. Focus is on expanding the secondary industry, in particular energy, mining and new building materials.

Lhasa Economic and Technological Development Zone