Although tea is, for Tibetans, indispensable, Tibetan-inhabited areas produce almost no tea at all. This is why, for instance, Tibetan horses were used to trade for tea produced in China's hinterland in ancient times.

In the 4th century, troops of the Tubo Kingdom captured some prefectures of China's hinterland. They found tea but had no idea how to use these "dried tree leaves." Gradually, however, they learned to make and drink tea. They even added butter to tea.

During the late Tang Dynasty (618-907) in China's hinterland, the Tang and the Tubo maintained good ties. Tang silk fabrics and tea were used to barter for Tubo horses and cows. During the ensuing Five Dynasties, in the Song and Jin periods, the bulk of Hexi areas were seized by Tubo troops. Tubo horses were then traded for Han tea. In 1372, the Ming (1368-1644) court set up the Tea-Horse Office to cope with the growing need of the Tibetans for Han tea.