China accelerates Mongolia investment to ‘facilitate’ Russia trade link and secure energy, commodities
- Mongolia and China signed ‘cooperation documents’ after Foreign Minister Wang Yi visited Ulaanbaatar earlier this week
- Mongolia’s top exports include gold, followed by coal briquettes and iron ore, while railway improvements are set to help smooth shipments between China and Russia
China has intensified trade relations with Mongolia, and investment in railway infrastructure improvements in its northern neighbour are set to improve Beijing’s access to vital natural resources and smooth commerce with sanction-hit Russia, analysts said.
Mongolia and China signed “cooperation documents” after Foreign Minister Wang Yi visited counterpart Battsetseg Batmunkh in Ulaanbaatar this week, according to China’s Ministry of Foreign Affairs.
The two sides agreed to connect railways to highways “so as to keep the industrial and supply chains stable and unimpeded” and to also reopen border crossings, the statement said.
The 4,630km-long (2,877 miles) land border is mostly empty deserts and mountains, but is also part of the world’s longest railway line, the Trans-Siberian.
Where imports can’t be easily substituted by domestic production, China is trying to shift the source of its imports toward more friendly countries, such as Mongolia
Some crossings have been closed due to the coronavirus pandemic, but for China, a more connected Mongolia helps ensure access to resources for its economy and 1.4 billion population.
