The Gengma Border Economic Cooperation Zone is in the city of Lincang's Mengding county, which is expected to become a traffic tip for an opening frontier and largely enhance the progress of resources development, trade, logistics and industries, Yang Hongbo, the ruling Chinese Communist Party's regional secretary, said.
Mengding is likely to become a hub for trade and tourism in the future, Yang said.
Roads and an airport are to be built in the remote county, he was quoted as saying by the state-run Xinhua news agency.
China's Cabinet is to adopt a bundle of measures to build Yunnan province into a foothold for southwest China's opening up drive and develop it into a gateway to regions in Southeast Asia and South Asia.
The government had approved more than 40 policy items covering nine aspects related to the area's development, including building up the economy and living standards, enhancing environmental protection and strengthening infrastructure construction, especially in transportation.
Yunnan province lies adjacent to Sichuan, Guizhou, Guangxi Zhuang Autonomous Region and Tibet Autonomous Region and borders Myanmar, Laos and Vietnam.
It is famous for its abundant natural resources such as plants and non-ferrous metals.