Mongolia-China Trade Structure And Comlementary Analytics

Mongolia is a landlocked country, connecting to the north of Russia, the southern border with China, and up to 4676 km boundary line between China and Mongolia. Over the years, Mongolia and China will always pursue the good neighborly and friendly policy. In 1949, Mongolia and China established formal diplomatic relations, and in 1951, international trade agreements were signed between the two countries with a real sense of bilateral trade. With China's economic and social development, and economic cooperation with neighboring countries, the acceleration of bilateral economic and trade relations have developed rapidly between the two countries.This paper will use international trade theory and macroeconomic theory to analyze the import and export trade structure and complementary based on the background of Mongolia's trade relations and its current situation. Although Mongolia has a simple trade structure, but the complementary is good. Empirical Analysis of the use of complementary product structure, the goods that China export to Mongolia are labor-intensive and technology-intensive, while exports to China is Mongolia's resource-intensive products.Through researching the status of trade relations between the two countries, the main problems that hinder trade in Mongolia include the development of economic infrastructure of Mongolia is low, the lack of competitiveness of Chinese investment in Mongolia, Mongolia mineral exports result in damage to the natural environment and other issues. The statistical analysis methods clearly show the trade relations between the two countries with Mongolia's Economic Growth. By analyzing the factors that affect trade in Mongolia, this is a proposed measure; the present situation of the Mongolian-Chinese trade, the bilateral trade primary products are minerals, high dependence on Mongolian-Chinese trade, therefore for the development of other areas Mongolia should transfer to Mongolian-Chinese trade structure.