China–Mongolia relations - Wikipedia
THE RELATIONS BETWEEN CHINA, RUSSIA AND. MONGOLIA. The Russo- Mongolian Agreement of November 3, , with its protocol; the Russo-Chinese . [Editor:This is a response to a presentation that Morris Rossabi made at USC in February Rossabi spoke on "China and Mongolia since " Bill Bikales . Mongolian-Chinese relations historically have suffered because of China's claims to "lost territory" and Mongolia's fear of China's expansion because of.
Mongolia has long aspired to become a logistics and financial center, using its location in North Asia and proximity to Chinese and Russian markets to its advantage.
- China-Mongolia Relations: Challenges and Opportunities
However, a recent visit by the Dalai Lama to Mongolia, and the resulting Chinese backlash, has once again revealed that economic partnership and recovery for Mongolia will be more difficult than the government expects. The country was the darling of emerging market investors from towhen it boasted one of the fastest growing GDP rates in the world at Four years later, inthis number shrunk to 0.
The price index for all types of coal supplied by Mongolia, its biggest export by volume, decreased by 15 percent from to Secondly, a less experienced government, led by the Democratic Party, took a series of protectionist steps to try and increase domestic control over expected riches, but ended up severely eroding FDI rates.
In particular, government attempts to renegotiate a deal with mining company Rio Tinto over the terms of the large Oyu Tolgoi copper and gold mining site took a toll on investor confidence.
Several developments, including a new agreement with Rio Tinto, have again placed the country in the limelight. However, to analyze what the future may hold for Mongolia, it is critical to look at the relationship between the country and its biggest economic partner, China.
For most of modern history, this relationship has been contentious. In fact, until the transition to a market economy began in the early s, Mongolia had been under heavy Soviet influence.
Mongolia and China discuss their relations and cooperation
Distrust of its large and populous neighbor to the south was widespread. The second largest import market was Russia.
Due to economic restructuring within the past few years, Chinese demand for Mongolian exports has slowed. However, it is clear that recovery will not be quick or easy.
According to the most recent statistics released by the Bank of Mongolia BoMtotal trade turnover by early November fell slightly, by 4. Exports rose slightly, by 0.
Additionally, the new government will have to pay for the sins of the old government. In short, Mongolia needs money.
Other important points of discussion at the August meeting reportedly were "certain international issues of common concern. In China's view, the presence of Soviet troops in Mongolia was a key "obstacle" to normalization of relations between China and the Soviet Union. China, maintaining that only a total troop withdrawal would be satisfactory, refused to back down from this position. From the Chinese perspective, Mongolia once had been under China's domination; it was therefore particularly galling that Soviet troops were now massed in that area and were directed against China.
The Mongolian minister of foreign affairs remarked in November that significant progress had been made in Mongolian-Chinese relations, but he stressed that any further Soviet withdrawals from Mongolia were a matter for deliberation by the Mongolian government.
Mongolia's message was that this was not a unilateral Soviet issue.
Mongolia - China
Following Gorbachev's UN address in December, Mongolia announced that Soviet troop withdrawals had been set in accordance with an agreement reached between Mongolia and the Soviet Union and had resulted from "the positive shift that had occurred in Asia and on the international arena as a whole. The Chinese side described the purpose of the treaty as being to maintain stability in the border areas.
The stationing of Soviet troops on Mongolia's border with China remained a major impediment both to improved Sino-Soviet relations and to Mongolian-Chinese relations. Nevertheless, by early Soviet assurances that Mongolian security would not be compromised, complemented by Mongolia's new relationship with the United States and enhanced international status, apparently allowed Mongolia's leaders to accept additional Soviet efforts to remove the Chinese "obstacle" of border troops.
Sino-Soviet consultations, in preparation for the May summit between Gorbachev and Chinese leader Deng Xiaoping resulted in the retention of Soviet troops in Mongolia--a requirement, no doubt of Mongolia--although a 75 percent force reduction was to occur at some unspecified time in the future.
Whether this action would satisfy China fully was still unclear in mid What was clear was that Mongolia's status would change significantly, with a much reduced level of protection from the Soviet Union. In addition, with increasing Chinese influence and involvement in Mongolia, Soviet motivation for providing larger aid and assistance packages might be diminished. Foreign observers assumed that the agenda of the May Sino-Soviet summit was a key subject for discussion during Minister of Foreign Affairs Tserenpiliin Gombosuren's eight-day visit to Beijing, beginning in late March.