HistoryIn October 1945, under the auspices of the United Nations, Mongolia held a referendum for independence as per the terms of the Yalta Conference of 1945. As a 

In October 1945, under the auspices of the United Nations, Mongolia held a referendum for independence as per the terms of the Yalta Conference of 1945. As a result, Mongolia declared independence with an overwhelming majority. After China recognized Mongolia in January 1946, a "Treaty of Friendship" was signed between the two countries.

There are large demographic and economic differences between China and Mongolia. Notably, the bilateral relations established between Beijing and Ulaanbaatar in 1949 have only expanded under President Xi Jinping.

Basically, bilateral relations between China and Mongolia have three main areas: governance, economy and diplomacy. Especially under President Xi, all these areas have come together to define the trajectory of Sino-Mongolian relations. The Ulaanbaatar economic policies have ensured that China remains Mongolia's main export destination and trading partner.

Mongolia's economy is highly dependent on foreign trade, and Mongolia's imports are expected to grow by 31% in 2021. China is the world's second largest economy by GDP, and Mongolia has little overlap. Therefore, trade competition between China and Mongolia is weak.

Today, relations between China and Mongolia are close and developing in all aspects, including culture, economy, politics and tourism. The Belt and Road Initiative plays an important role in supporting these relationships. Since 2014, China has upgraded its "strategic partnership" with Mongolia to a "comprehensive strategic partnership". The main purpose of this partnership is to strengthen economic, political and security cooperation.

The Chinese government has also pledged to invest $1.25 trillion in Mongolia's mineral deposits by 2025 and launch 25 new projects in Mongolia to improve connectivity between the Belt and Road and the Steppe Silk Road.

Meanwhile, as the rest of the world challenges Beijing over the spread of the coronavirus, President Battulga's diplomacy has demonstrated Mongolia's "good neighbour" attitude. The donation of 30,000 sheep, known as "sheep diplomacy", was not a diplomatic gesture, but had deep symbolism. In response, China donated 300,000 doses of vaccine to Mongolia as part of vaccine diplomacy.

In conclusion, for China, the current Eurasian economic scenario is strongly influenced by the cooperation of the Belt and Road Initiative. Mongolia plays a strategic role in this project, and Mongolia's development depends on the successful maintenance of the project and regional stability.

China-Mongolia Relations

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