Strategically positioned gem acts as springboard for businesses

Yuan Shenggao
0 Comment(s)Print E-mail China Daily, 04 09, 2018
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Strategically positioned between Russia and China, Mongolia provides opportunities for business leaders and investors to start new businesses and expand existing ones, Mongolian officials said.

In recent years, Mongolia has encountered some economic difficulties that caused a sharp drop in GDP growth and foreign direct investment flows into the country.

However, its economy grew by 5.1 percent in 2017, recovering strongly from the 1.2 percent growth rate recorded in 2016, according to data from the Mongolian government.

The main drivers of growth last year was the strong performance in mineral product exports, expected to maintain momentum in the short term, and the implementation of the International Monetary Fund's reform package, which has helped restore business confidence.

Mongolia is located at an important geographical junction linking Asia and Europe. This location requires Mongolia to give high priority to infrastructure and connectivity.

Officials said that as a result the Mongolian government and people eagerly supported China's Belt and Road Initiative and aimed to synergize it with Mongolia's Development Road program.

In addition, the Mongolia-China-Russia economic corridor that is currently under construction envisions the implementation of 32 major projects.

Currently, the three sides are concentrating on three important projects: highways, railroads and power lines that will run across Mongolian territory linking China and Russia.

A driving engine of the Mongolia-China comprehensive strategic partnership is trade and economic cooperation, and the economic structures of the two countries are highly complementary.

Over the last decade, China has been Mongolia's largest trading partner and a key source of foreign investment.

Bilateral trade volume with China of $6.7 billion accounted for 63 percent of Mongolia's total foreign trade last year.

Mongolian exports include coal, oil, minerals, livestock and other primary products. It mainly imports from China electromechanical products, agricultural products, construction materials, and textiles.

The Mongolian government said it aims to further deepen economic and trade cooperation with China, giving greater emphasis to diversifying exports, creating more value-added production and facilitating high-quality investment that encourages innovation and eco-friendly advanced technologies.

As part of the Mongolian government's efforts to diversify the economy, high attention is given to other sectors such as agriculture, renewable energy and tourism, in addition to mining,

(China Daily 04/09/2018 page7)

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