Free Trade Ties Between Mongolia and China Growing

In May this year, China’s Minister of Commerce Gao Hucheng led an economic and trade delegation from the PRC in a visit to Mongolia. The delegation met with Mongolian Prime Minister Saikhanbileg to discuss facilitation of trade between Mongolia and China. During the meeting of the China-Mongolia Economic and Trade Joint Committee, the two sides reached broad consensus as to several areas of cooperation.

At the meeting, Minister Gao indicated that China would like to actively promote cooperation, accelerate the establishment of a China-Mongolia-Russia economic corridor, and promote the construction of free trade zone with cross-border economic cooperation zones, and generally promote the sustained and healthy development of bilateral economic and trade relations.

The Mongolian side noted that Mongolia attaches great importance to relations with China, and regards China as a good neighbor, good friend and reliable partner. Mongolia will strengthen cooperation with China is several areas, including to accelerate the establishment of a free trade zone, and promoting cooperation in the development of mineral resources, energy and animal husbandry. Mongolia and China will work to facilitate trade.

The parties expect the construction of a Free trade zone between Zamiin Uud and Ereen hot (aka Erlian) to be completed by the end of this year, 2016. The Free trade zone will cover almost 18 sq.m on Mongolian and Chinese border. About 50 business entities from China and Mongolia will operate in the zone. According to the bilateral agreement on establishing cross-border economic cooperation zone, Mongolian and Chinese export and import taxes will be zero within the zone.