Mongolia considers austerity as China commodity demand plummets

Mongolia's finance minister is pushing for passage of austerity measures in the face of a budget shortfall this year of more than 4% caused by falling exports to China and compounded by a concomitant fall in commodity prices, Bloomberg reported. China took in 88% of Mongolian exports in 2014, but export revenue from China trade fell 17% in the first nine months of the year as coal, oil and iron oil fell 32%, 41% and 48%, respectively. The country's reliance on China exports has been blamed in part on a 2012 law that ratcheted up restrictions on foreign investment--passed in response to Aluminum Corp. of China's bid to buy a Mongolian coal mining outfit.