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Mongolian Prime Minister Luvsannamsrain Oyun-Erdene. Photo: Reuters

China, Mongolia to discuss technology, railway connections and green development as prime minister begins 6-day trip

  • Mongolian Prime Minister Luvsannamsrain Oyun-Erdene leads a high-level delegation for a six-day visit to China, which starts on Monday
  • Oyun-Erdene is set to meet Premier Li Qiang, and also attend the World Economic Forum’s 14th Annual Meeting of the New Champions
Mongolia

Mongolia is expected to enhance cooperation with China on technology, railway connections and green development as its prime minister kicked off a six-day visit to its neighbour on Monday.

Luvsannamsrain Oyun-Erdene, who is leading the high-level delegation, is expected to meet Chinese Premier Li Qiang and will also attend the World Economic Forum’s 14th Annual Meeting of the New Champions, or Summer Davos, in northern port city of Tianjin between Tuesday and Friday.

“I am delighted to undertake my first official visit to China and take the opportunity to expand our two countries’ strategic partnership,” Oyun-Erdene said in an official statement.

Science, technology, innovation and green development, including delivering progress on projects such as the Erdeneburen hydropower plant, will be discussed, according to the statement.

This is basically a very consistent strategy to form relations with developing countries through trade and economic cooperation
Edwin Lai

“I can see why China is interested in building this kind of relationship in Mongolia. This land belt is very important for China’s relations with Central Asia … and China is doing it step by step with a long view,” said Edwin Lai, director of the Centre for Economic Development at Hong Kong University of Science and Technology.

“This is basically a very consistent strategy to form relations with developing countries through trade and economic cooperation.”

Both governments will work on the enhancement of connectivity through the Gashuunsukhait railway, as well as the integration of the Bichigt and Shivee Khuren railway networks.

China hopes to bolster transport infrastructure in Mongolia to control ‘all points of entry’
James Chin
A rail service between Mongolia’s Tavan Tolgoi coalfield and Gashuunsukhait on the Chinese border was opened in September, with the expectation that it could help coal exports to China reach 50 million tonnes a year.

Both Mongolian border crossings of Bichigt and Shivee Khuren can be connected to China’s Inner Mongolia autonomous region, and are expected to facilitate the transport of bulk goods, such as coal and copper, with a more comprehensive rail structure.

“China hopes to bolster transport infrastructure in Mongolia to control ‘all points of entry’ while Russia is busy with Ukraine and the US doesn’t care about Mongolia,” said James Chin, a professor of Asian studies at the University of Tasmania in Australia.

“China’s goal is to expand railway projects from Mongolia westward all the way to Belarus.”

02:35

French president Macron makes a play for Russia-dependent Mongolia

French president Macron makes a play for Russia-dependent Mongolia

During their trip to China, the Mongolian delegation is also expected to explore the potential of extending China’s swap loan into a development loan.

China is using the loan and any resulting infrastructure as part of its “grand connecting plan”, said Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

“Mongolia will gladly accept the loans because it relies otherwise on multilateral organisations such as the Asian Development Bank and World Bank,” he added, noting that Chinese loans have “fewer caveats” compared to the multilateral lenders.

Oyun-Erdene told the Post in March that Mongolia is seeking economic diversification and to be less dependent on a single market.

Mongolia and France, for example, have entered into a broader cooperation in tourism, direct commercial flights and commercial satellites, according to an official statement from the Mongolian government in May following a visit by French President Emmanuel Macron.

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