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How does Yunnan Baiyao help dogs? Yunnan Baiyao works in two seemingly opposite ways — truly one of the things that make it seem almost miraculous! It stops bleeding and also acts as an anticoagulant (blood thinner) to improve blood circulation and disperse clots. Veterinarians may use Yunnan Baiyao for dogs to: Stop acute bleeding Regenerate new tissue by removing accumulated blood (i.e. hematomas)Relieve swelling by clearing away toxic materials Alleviate pain by p …