On Thursday, Ambassador of China to Mongolia Xing Haiming met with Mongolian journalists to discuss the economic cooperation between Mongolia and China and other foreign affairs issues.
Ambassador Xing emphasized that mining, infrastructure, and humanitarian collaboration are key pieces of economic cooperation between the two countries.
The Ambassador highlighted that the following principles should be pursued to strengthen economic cooperation between the neighbors:
- Improve mining, energy, infrastructure, and other cooperation by taking advantage of opportunities for economic cooperation and harnessing cohesion between the development strategies of the two countries; expedite the launching of projects and programs that have been negotiated, and seek mutual benefits from the projects
- Look for new directions for economic cooperation, adapt new Chinese technology to develop Mongolia’s livestock sector, expand banking and financial cooperation, and go forward incrementally with a currency swap agreement
- Move forward on establishing an economic cooperation zone and free-trade zone agreement; establish agreements between Chinese and Mongolian investors; develop an economic corridor between China, Russia, and Mongolia under the Belt and Road Initiative; and develop economic cooperation in areas along the Mongolian and Chinese border
The Chinese Ambassador said that cooperative projects will greatly contribute to the stability of increased economic cooperation, and will help Mongolia overcome its economic challenges.
Ambassador Xing underlined that representative offices of the Bank of China and Industrial and Commercial Bank of China are operating in Ulaanbaatar, but representative offices have no authority to implement cooperation projects or make investments, so China wants to open an institution that has commercial authority in Mongolia. The Ambassador said that the opening of such an organization would allow Chinese investment to flow into Mongolia and help stimulate Mongolia’s economic growth.
He added that Chinese representatives have negotiated with Mongolia on this matter, but the negotiations have encountered challenges in the legal and regulatory environment. He emphasized that addressing these challenges are not exclusive to Chinese banks, but that they are a matter concerning all aspects of foreign investment.
The Ambassador noted that trade turnover between Mongolia and China was 5 billion USD last year, but it represented less than one percent of China’s foreign trade in 2016. He said there should be a greater focus on developing trade turnover, and that there are numerous opportunities for the countries to take advantage of their improved relations.