Lijiang is always an important hinge that links Yunnan with Sichuan and Tibet. It is also a core place in Tea-horse Road. Other places along the Tea-horse Road, like Xishuangbanna, Simao, Pu'er and Dali, are famous of tea and the tea making, as known as the important stations in traffics. Lijiang doesn't have tea, but it is one of the most important parts on the ancient road.

The mild climate in Lijiang is fit for living. The Tibetan horse teams after arriving at Lijiang, would not go further to the unfamiliar places. They didn't know the languages over there and couldn't get used to the life style and hot temperature down in the midland. For the merchants from inlands, they faced the same problems of the Tibetan. The language, different way of living and cold climate stopped them in Lijiang. Thus, Lijiang, a marginal place has become a best spot for trade. The Naxi in Lijiang know the things of the midland and the Tibet. In the commercial activities, the horse teams of the Naxi take great advantage of their important location.

Tea-horse Road helped with the foundation of the Old Town Lijiang. The day that the road appeared was the time that the Old Town began to take shape. It was the Tea-horse road that made the Old town. The market hence established made Dayan a prosperous town with merchants coming and going day and night. Lamaism, Buddhism and Taoism were introduced into Lijiang and immediately got mixed with Dongba and other religions of the Naxi making Lijiang a place of brilliant multiple religions and cultures.

China tours inclusive of visiting Lijiang