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Companies from China and Mongolia yesterday inked five business cooperation agreements worth close to US$100 million during the China-Mongolia Business Forum.

 

Representatives of 50 Mongolian companies are visiting China on a delegation led by Mongolian Prime Minister Miegombyn Enkhbold. 

 

"Since 1998, China has been Mongolia's largest trade partner, and bilateral trade relates mainly to the mining and infrastructure sectors," said Enkhbold. 

 

"Cooperation could also expand to agriculture, tourism and stock breeding," said Sambuu Demberel, chairman and chief executive officer of the Mongolian National Chamber of Commerce & Industry (MNCCI). 

 

However, government officials from Mongolia believe hurdles still exist in bilateral trade, hurdles which need to be addressed.  "Both governments should jointly study current problems and improve the situation," said Demberel. 

 

"During the visit, we are expected to talk further with Chinese officials on strengthening China-Mongolia transportation capability and on reducing taxes and non-tariff barriers on Mongolian exports to China," Enkhbold said. 

 

But despite growing bilateral trade, "insufficient business information exchange and material burdens are major problems we have to deal with," said Demberel. 

 

In 2005, Sino-Mongolia trade amounted US$860 million, an increase of 24 percent year-on-year. In the first nine months of this year, trade was US$1.13 billion, growing by 88.8 percent over last year. 

 

MNCCI and the China Council for the Promotion of International Trade (CCPIT) have set up a website tailored for companies from both nations to review the latest business opportunities and obtain up-to-date rules and regulations. 

 

"China and Mongolia's economies complement each other, so we really hope we can strengthen cooperation," Demberel said. "Creating a free-trade environment, and reducing taxes and non-tariff barriers on Mongolia's exports to China is very important." 

 

On Wednesday, China signed a memorandum with Mongolia offering US$300 million in preferential loans to Mongolian companies.

 

(China Daily November 24, 2006)