Abstract: A systematic analysis reveals that cooperation between Sichuan and South Asia in economy and trading has achieved a lot，which can be demonstrated by the increasing trading scale，and by the fact that direct investment by both parties in Sichuan and South Asia have been made.But there still exist problems，which include relatively small proportion of and unbalanced trading cooperation，inadequate comparative advantages etc.Based on the above analysis，the authors study the opportunities and challenges in Sichuan and South Asia cooperation and point out that challenges to more effective cooperation mainly lie in conservative concepts，cold-war-time attitudes，similar natural and economic situations and lack of a scientific system of cooperation.Then the authors suggest that cooperation between Sichuan and South Asia in trading，investment，economy and technology be further promoted by taking the following measures：reinforcing the awareness of opening to South Asia，setting up an effective cooperation system on the basis of Western China International Fair，implementing a strategy of grand opening，establishing non-government research institute for strategic supports，constructing development zone，expediting official intercommunication and forging sister relationship with South Asian cities，etc.

Key words: economic and trading cooperation, Western China International Fair, three axes, one circle, consulate center, Sichuan, South Asia