Tenchong's history is inextricably entwined with the jadeite trade

In addition to the local jewelry markets, where hundreds of jewelry shops and stalls cluster, there are also regular wholesale or raw stone bazaars for jade in Tengchong, which is known as the Jade town of Yunnan province.

Located near the border with Myanmar, Tengchong is a major processing center for jadeite, which is one of the two minerals recognized as jade, the other being nephrite. Nephrite is found in China. Jadeite, which is scarcer and thus more expensive, comes from Myanmar, with the most prized being the yellowish jadeite known as imperial jade.

Tenchong's association with jadeite can be traced back about 600 years, according to Lu Dalin, curator of the Tengchong Jadeite Museum. Historical records such as the Travels of Xu Xiake indicate that Tengchong jadeite products enjoyed a very good reputation throughout Yunnan in the late Ming Dynasty (1368-1644), and they were highly sought after.