ABSTRACT
By virtue of its geographical position, Guangxi has always formed a natural link between Southwest China and Southeast Asia. Border trade across land and sea has a long historical tradition. However, during most of the history of the People’s Republic of China, Guangxi’s situation has been defined by political, strategic and military considerations rather than by traditional economic links. Guangxi was in an isolated position, as it faced a real border towards Vietnam and an invisible one towards the rest of China. While its border to Vietnam was open for military supplies, it was for a long time under the threat of a war that could have spilled over into Guangxi. Only a few years after the end of the Vietnam War, Guangxi’s border with Vietnam became a war zone that was left heavily mined and inaccessible for more than a decade. As a result it attracted very little investment.
