Yunnan's 26 ethnic groups have developed their own folk arts and crafts in different living environments. The province has made full use of folk cultural resources and formulated a series of policies and measures to boost folk crafts development. It has developed a bunch of cultural brands in the cultural tourism market.

Heqing silverware, Gejiutin-ware, Jianshui purple pottery, Jianchuan woodcarving and Yi people's embroidery have been very popular with tourists and have given rise to a group of folk crafts production villages, boosting the tertiary industry development and helping farmers rise from poverty.

Yunnan has also fostered several jewelry and jade processing facilities in Ruili, Yingjiang and Tengchong in an effort to build Kunming into a jewelry and jade wholesale and sales market. At present, there are more than 7,000 cultural companies dealing in folk crafts, with annual sales of 8 billion yuan.