The Democratic Reform in 1959 enabled the Tibetan ethnic handicraft industry to experience rapid recovery and development. Between 1959-65, the local ethnic handicraft industry increased to comprise 33 sectors, with nearly 100 enterprises, more than 230 mutual aid teams and 6,670 employees. The annual output value rose from 1.24 million Yuan prior to the Democratic Reform to 8.9 million Yuan, an average annual increase of 32 percent.

From 1981 to 1989, the State allocated more than 23.4 million Yuan to Tibet for the factory building expansion, technological upgrading and personnel training in the local ethnic handicraft sector, enabling it to witness fast growth. In 1983, the variety of ethnic handicraft products increased from 800 in 1978 to more than 1,300. Output value exceeded 20 million Yuan, profits approached 700,000 Yuan, and collective wealth accumulation surpassed 2.7 million Yuan.

In 1989, the ethnic handicraft sector in Tibet had 113 collectively run enterprises, with a total payroll of 6,700. Output value of the sector reached 40.7 million Yuan, a seven-fold increase over 1980, and the variety of products totaled more than 1,600.

Since 1994, the Tibet Autonomous Region has vigorously developed tourist commodity production, with remarkable economic results. In 1996, the region earned 5.6 million Yuan in profits from the production of tourist commodities, up 76 percent over 1985. With the variety exceeding 730, the sales of tourist products accounted for 15 percent of the total output value of the local ethnic handicraft industry. With the support of the regional people's government, the number of individual handicraft firms increased to more than 1,000, employing 4,500 workers, and their annual output value reached 2.9 million Yuan.