China eyes trade route deal with Mongolia during Xi visit

Aug 18 (Reuters) - China expects to sign agreements to give landlocked and resource-rich Mongolia easier access to Chinese territory for its exports when President Xi Jinping visits the country this week, a senior diplomat said on Monday.
Mongolia, nervous about over-dependence on its enormous neighbour, had once favoured a more circuitous and expensive northerly rail route via Russia that would connect its mines to the Pacific coast, a plan the World Bank said was unrealistic.
But in an apparent recognition that China is still the best option for Mongolian exports, Mongolia is now talking with China about a route directly south.
Assistant Chinese Foreign Minister Liu Jianchao said that making the trans-shipment of goods from Mongolia would be one of the topics for discussion during Xi's two-day trip to Ulan Bator, which starts on Thursday.
"Everyone knows that Mongolia is a land-locked country with no sea ports, so the issue of trans-shipment, especially via China, is a very important need for Mongolia. China fully understands this and will do all it can to help Mongolia to smoothly and more easily carry out trans-shipments," Liu told reporters in Beijing.
"Both sides are currently having talks on this issue," he added, declining to provide details. "The direction of these talks is to make Mongolia's trans-shipments easier and smoother."
Soaring Chinese demand for commodities like coal has underwritten Mongolia's rapid growth, with more than 90 percent of its exports sold to China.
Still, Beijing's growing economic hegemony has caused disquiet among Mongolian lawmakers, who hastily drafted a law in 2012 to limit foreign ownership in "strategic" sectors.
The law was designed to block efforts by China's state-owned Chalco Group to acquire a majority stake in Mongolian-based coal miner South Gobi Resources.
Mongolia had ambitions to become China's top coking coal supplier, largely through the development of one of the world's biggest untapped mines at Tavan Tolgoi, near the Chinese border.
However Mongolia has complained that it has not received fair value for the coal, arguing that the lack of alternative buyers allows Chinese firms to drive down prices. A dispute with Chalco, which signed a supply deal with Tavan Tolgoi in 2011, has contributed to a decline in coal shipments.
Liu said that while there were "different points of view" on certain issues, generally China felt that Mongolia welcomed Chinese business.
"From what we can see from our contacts with the Mongolian government, people and companies, the Mongolia side really welcomes China's investment," he said.
"Both sides have had very effective cooperation on the energy and mining side. Talks on relevant projects, including coal mines, railways and roads are ongoing. We hope that there can continue to be progress."
In October, Mongolia agreed to establish a working group with China to oversee the construction of new road, rail and pipeline infrastructure connecting the two countries with Russia.
Liu would only say that China was talking with both Mongolia and Russia about the oil pipeline. (Reporting by Ben Blanchard; Additional reporting by David Stanway)

Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic