East Asia Forum: Chinese investment in Mongolia – an uneasy courtship between Goliath and David

The investment and trading relationships between China and Mongolia seems like a marriage made in heaven. Landlocked and poverty-stricken, Mongolia has an abundance of coal, copper and iron ore that China craves to feed its rapid industrialisation. Mongolia’s proximity to China, its largest customer, also offers it considerable cost advantages against other major commodities suppliers such as Australia and Brazil. The trade and investment figures between these two countries certainly bear witness to a strong and complementary relationship. China has been the largest investor in Mongolia since 1998 and its largest trading partner since 1999, and it has retained these positions ever since. In 2009, the bilateral trade figure stood at US$2.4 billion with China importing US$1.3 billion worth of commodities, which accounted for more than 70 per cent of Mongolian exports. To read the full article, click hereChinese investment in Mongolia – an uneasy courtship between Goliath and David

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