Pledging $10 billion, China-Mongolia trade ties to take a new turn.
In a bid to strengthen China-Mongolia trade ties, Xi Jinping became the first Chinese president to visit its resource-rich neighbor in more than a decade. The two countries pledged $10 billion by 2020, almost doubling their annual trade, in a joint declaration signed by Xi and Mongolian president Elbegdorj Tsakhia in Ulan Bator, the capital of Mongolia, on August 21, 2014.
The two countries share a considerable length of their borders, which is why the agreement holds great significance. The move will also help pacify security concerns and historical tensions that the two countries share.
More than half of Mongolia’s external trade depends on China, with almost 90 percent of its exports comprising coppor, coal and animal products. The country also supplies 37 percent of its imports to China.
Since Mongolia is landlocked, it had been looking for more trade routes to export its mineral resources. Keeping that in mind, China has permitted access to its north and north-east ports to the country.
Under the declaration, Xi will oversee the signing of 20 cooperative agreements covering mineral extraction, infrastructure building, finance and diplomatic relations over the two-day visit.
In September 2013, the two presidents converged in Bishkek, Kyrgystan, to further their bilateral trade that reached $6 billion last year.
Photo Credits: Xinhuanet