China accounts for over 80% of Mongolia's foreign trade

Елена Краснова World
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China accounts for more than 80% of Mongolia's foreign trade

On January 10, a roundtable meeting was held at the National Chamber of Commerce and Industry of Mongolia, attended by representatives from government institutions and enterprises with Chinese investments.


The purpose of this meeting was to improve interaction between government structures and enterprises with Chinese capital.

President of the Chamber B. Lkhagvajav reported that trade between Mongolia and China reached 16.5 billion USD, which accounts for approximately 80% of the country's total foreign economic turnover. Over the last decade, this figure has increased from 1 billion to 16 billion USD, highlighting the success of bilateral cooperation.

He also noted that this event served as a platform to discuss key areas of the economy, such as the mining sector, construction, agriculture, and the food industry. Attention was given to issues related to taxes on mineral resources, which have been discussed for several years. These issues hinder foreign investment and negatively affect the financial situation of local companies.

B. Lkhagvajav also emphasized the existing difficulties in labor legislation that hinder the attraction of qualified specialists from abroad. He added that a number of legislative initiatives aimed at improving business conditions and the investment climate in the country will be considered at the upcoming spring session of the Great State Khural.

Currently, more than a thousand Chinese companies operate in Mongolia. Modern international conditions underscore the necessity of actively establishing trust-based business relations with neighboring states.

The Economic and Trade Counselor of the Chinese Embassy in Mongolia, Liu Jinqi, noted that the mining sector is key in economic cooperation between the two countries. The growth of trade and investment in this area vividly illustrates the dynamics of bilateral relations.

Economic ties between Mongolia and China show real achievements not only in the mining sector but also in other areas, such as agriculture. He emphasized the importance of strengthening political coordination and developing intergovernmental relations.

Mongolia should not only strengthen intergovernmental cooperation but also work on increasing the transparency and stability of the tax system, improving the legal framework in labor and occupational safety, as well as creating a more favorable investment and business climate.

If these measures are implemented, the volume of bilateral trade will continue to grow, and economic cooperation will expand.

The director of "Mergen Tour" company, T. Enkhtur, highlighted the importance of signing a Memorandum of Cooperation between the Chambers of Commerce and Industry of China and Mongolia. He is confident that this document will support enterprises in both countries.

Currently, Mongolia's economy heavily relies on the export of mining products. However, there is significant potential for exporting agricultural products and processed goods beyond this sector. T. Enkhtur hopes that the joint efforts of his company and the Chamber of Commerce and Industry of China will help develop these areas.

A key task is to diversify exports and ensure reliable supplies of agricultural products to the Chinese market. This is important not only for business but also for improving the incomes of herders and the sustainable development of the rural economy.

Our company is also engaged in the production and export of light industry products, including small leather goods. However, entering international markets presents certain challenges and administrative barriers, such as high import duties in China, which can reach up to 17%, while our customs duties are at 5%. We intend to explore the possibility of reducing these rates and consider relevant initiatives," added T. Enkhtur.

The meeting was attended by representatives from 230 Mongolian and 60 Chinese companies, who actively discussed issues of cooperation and establishing business partnerships.
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