Want China Times
August 25, 2014
China’s president Xi Jinping, center, and Mongolia’s president Tsakhia Elbegdorj during their meeting at Mongolia’s presidential residence in Ulan Bator, Aug. 22. (Photo/Xinhua)
China and Mongolia signed more than a dozen key infrastructure and energy cooperation agreements during Chinese president Xi Jinping’s visit to the country last week, reflecting China’s efforts to expand overall diplomacy in the landlocked country located in east-central Asia.
In other words, if China can include Mongolia in the greater Chinese economic circle and maintain security on its northern border, this will allow it to step up its strategic leverage in dealings on East and South China Sea issues.
After Mongolia declared itself an independent country in 1924, it has often been wary of domination by China. During recent years, it has been seeking to expand multiple diplomatic ties with other countries and maintaining a balanced relationship with both China and Russia.
Meanwhile, Mongolia has been increasingly engaging with Canada, the United States, the European Union, and even South Korea and Japan through the Third Neighbor policy — Mongolia’s new foreign affairs guideline designed to diversify its diplomatic partnerships.
The relationship between China and Mongolia gradually became normal after the two countries signed a treaty of friendship and cooperation in 1994.
Mongolians have had complicated feelings towards China. A BBC News report citing The UB Post, a Mongolian newspaper, showed that nearly 60% of Mongolians think Chinese enterprises have plundered their natural resources, while Chinese nationals have taken their jobs.
On the other hand, about 80% of daily supplies in Mongolia come from China and the landlocked country’s economy is heavily reliant on its southern neighbor.
Xi said during his recent visit that China is willing to provide opportunities for joint development with neighboring countries and happy to see these countries take advantage of China’s rapidly developing economy.
Last year, Xi had proposed building a Silk Road economic belt to enhance connectivity with Central Asia; and a 21st Century Maritime Silk Road, which will also be developed to connect China with ASEAN countries initially and ultimately with South Asia as well.
On the back of its abundant natural resources, Mongolia’ economic growth touched 17.5% in 2011, but fell to 5.3 percent during the first half of this year mainly due to declining foreign investment, soaring inflation and growing unemployment.
China deems Mongolia’s energy and railway segments as an important part of its global energy strategy. During Xi’s visit, China and Mongolia signed more than a dozen cooperative agreements covering mineral extraction, infrastructure building, finance and diplomatic relations.
Four of these 11 agreements under discussion have to do with ground transportation to Chinese ports.
Situated in a geographically strategic location between Russia and China, Mongolia has during recent years sought to establish military cooperation ties with the United States, Japan and Europe to enhance its status in the international community.
Meanwhile, Japan has been stepping up diplomatic efforts to strengthen its ties with Mongolia in a bid to curb China’s clout in Mongolia and elsewhere.
Under such circumstances, China’s inking of a number of agreements with Mongolia is being seen as a bid to reduce its reliance on Vietnam and Australia for coal and iron imports, indirectly challenging the US strategic rebalancing towards the Asia-Pacific region, while simultaneously preventing the United States from inciting anti-Chinese sentiment in Mongolia.
