At present, in a market environment where the cost of dollar financing in the global market is becoming more expensive, for those countries with a single economic structure, shortage of foreign reserves and high inflation, the problem is not limited to the shortage of the dollar. For example, in recent years, the The plunge in prices of commodities has hit them hard, and the new crown virus has undoubtedly further hit demand, and this is addictive to resource dependence, the economic pillar of the mining output value Mongolia, which accounts for 30%of GDP, is undoubtedly the worst news. According to the Chief Economics of the Bank of Mongolia My explanation is that nearly 50%of the country’s economic cycle fluctuations are caused by external environmental shocks. According to the latest data from the Central Bank of Mongolia, as of November 2020, the total foreign debt has increased by 8.14 billion U.S. dollars, an increase of 11.6%. According to Reuters data, in 2022, there will be an additional $1 billion in government bonds to repay interest payments. And behind this, something readers and friends don’t know is happening.
At this time Wall Street The predators are staring at these markets, preparing to go short one by one. For example, for many years, mining companies from Western countries such as the United States and Australia have been controlling Mongolia’s mining industry.
It is under these market and economic backgrounds. Analysis believes that increasing its proximity to the Chinese market is becoming a new driving force for Mongolia’s economic recovery. The latest development is:The Russian Satellite News Agency quoted Gazprom’s news three weeks ago as saying that the company is discussing with Mongolia on the possibility of sending Russian natural gas to China. Experts from China, Russia and Mongolia will study the construction of gas transmission from Russia to China through Mongolia. The feasibility of the pipeline.
Russian energy expert Said that natural gas will flow to Central China and East China, and the gasification of Ulaanbaatar may have a positive side effect. In response, Mongolia has also sent invitations to relevant companies in China and Russia on many occasions, hoping to build a natural gas transportation pipeline in Mongolia to supply natural gas.
In fact, senior officials of Mongolia once participated in the Eurasian Economic Union Unified Market Promotion Business Forum in early 2020 and stated that they will join hands with China and Russia to create economic corridors. Later, the activation of the China-Russia-Mongolia Economic Corridor heralds huge infrastructure projects. If this China-Russia-Mongolia Economic Corridor can be realized, it will become the Asia-Pacific region for Mongolia, which has no access to the sea. A transportation hub between major markets.
The latest development is that the Russian National Technology Group revealed to Russian media two weeks ago that the group will modernize three road ports along the borders of China, Russia and Mongolia. In order to improve traffic capacity and reduce logistics costs, the Russian media quoted a report from Russia’s largest freight car manufacturer last week saying that it had won an international bid to deliver 810 large-load gondola cars to Mongolia to help Mongolia The Taben Tolgoi Coalfield, one of the largest open-pit coal mines in the world, transports coal to the Chinese market.
Goldman Sachs stated that global commodities including coal, iron and copper are expected to enter the Structural bull market, and copper is expected to be the best metal species in 2021, because copper has been used as a synonym for economic prosperity in places such as the Chinese market. This is undoubtedly good news for Mongolia, which is highly dependent on resource exports. According to the assessment issued by Mongolia’s National Statistics Committee, the scale of railway transportation within 12 months of 2020 has increased by 7.3%year-on-year to 27.5 million tons, especially China direction.
At the same time, in order to save the economy, Mongolia also imitated the development model of China’s economy, in The city of Zamyn-Uud has established a free economic and trade zone where RMB can be used for consumption, which has become one of the driving forces of economic growth and helps it continue to recover. For example, we noticed that in recent years, in Erenhot, people in Mongolia often drive trucks and line up here to shop for goods. , And behind it is that the country’s CPI has risen year after year and prices have risen in recent years. In the eyes of the Mongolian people, this is the frontier and representative of China’s economic reform and opening up, and it is also a major consumption place for them in China. The best-selling products are made in China. They rushed between various shopping malls, morning markets, and physical stores to make profits and inject vitality into the local economic development.
At the same time Mongolia also said earlier that it is willing to strengthen cooperation with China’s economy. At present, China is also vigorously promoting the country’s trade. Now the trade volume between the two countries has accounted for 68%of the country’s total trade volume, according to Russian media a week ago. Mongolia has joined the Asia-Pacific Trade Agreement, and the trade between Chinese and Mongolian enterprises has also announced new tax reduction measures. This is also the latest development after the 30,000 sheep donated by Mongolia have been delivered to China. .
This will become even more important in the past six months as the short-term dollar financing costs in emerging markets have become tighter. For example, since the commodity plummet in 2014, many people have donated their horses, gold, and jewellery in order to cope with the high debts and repay the debts of the country. These items were especially precious to Mongolia, which was trapped in the dollar shortage. Obviously, this is the convenience that transportation and infrastructure have brought to Mongolian people and businesses, and it is also another epitome of the more convenient access of Chinese products to the global market. Many merchants in Mongolia are grateful for this and believe that it is convenient to connect with the Chinese market. , Providing them with unlimited opportunities to increase their income.
According to Erlianhot, Inner Mongolia According to the news released by the Municipal Bureau of Commerce last month, in the first 11 months of 2020, Erenhot Port imported rapeseed worth 480 million yuan , An increase of 20.7%. According to news, Erenhot is the largest land port between China and Mongolia, located at the key node of the China-Mongolia-Russia Economic Corridor. It has unique advantages in processing imported grains. (End)