The history of Tengchong, known in ancient times as Tengyue, traces its roots back to the Western Han Dynasty (206 BC – 24 AD). During those times, these lands in southwest China were part of the Yizhou Commandery. Official administrative status was established later, during the Ming Dynasty, when the Tengyue Region was founded in 1524. From its earliest mentions, the city was inextricably linked to its strategic position on important trade routes.
The development of Tengchong was defined by its unique geographical location. The city became a crucial point on the Southern Silk Road, which connected China with India and Southeast Asian countries. This determined several key features of its formation:
- Tengchong served as the "gateway" to the southwest, through which caravans carrying silk, tea, and other goods passed, while jade, precious stones, and spices were imported in return. This made it the largest centre for jade trade in China.
- Its location west of major rivers and mountain ranges meant the city was historically more closely linked with Burma (modern-day Myanmar) than with the central regions of the country, giving it a distinct cultural atmosphere.
- Beginning with the Ming Dynasty, authorities actively strengthened their presence in the region, encouraging migration and development. This contributed to Tengchong's growth as an administrative and commercial hub, and its significance in the early 20th century is highlighted by the opening of a British Consulate here.
Since ancient times, Tengchong was not merely a transit point, but a place where crafts flourished and a unique culture took shape. The city became a centre for processing Burmese jade, and local craftsmen were renowned for their carving skills. Thanks to its location, Tengchong became a starting point for many Chinese emigrants who left for neighbouring countries to conduct business. Subsequently, they invested their earnings in the development of their hometown, as evidenced by the history of the famous ancient town of Heshun. The economy was also supported by fertile lands growing rice, sugar cane, and high-quality tobacco.