A Study Of China's Direct Investment In Mongolian Mining Sector

The fastest growing economy makes China become the important raw material and energy importing country in international market,in other way,the biggest exporter and producer country in the world.As a neigbour country of China,Mongolian richful with mineral resource would attract China's direct investment,and also economic cooperation between Mongolia and China mainly focus on the mining sector.Since Mongolian Government's approval of the Complete Strategy of National Development,the exploration of the biggest 15 mining deposits of Mongolia was determined,China's investement in Mongolian mining sector increased numerously.It resulted that Mongolian exporting amount to China increased rapidly since 2010,for example,in 2013 coal export to China reached it highest amount,18373 thousands of ton,100%of which transported to China.Along with the development in both countries economic and trade close cooperation,a few problems have emerged.Most importantly,the unsustaibilitty of Mongolian government and legal environment,under-developed infrastructure and also the resource demand of China have decresed.Nevertheless,some of these problems already influenced on China's investment in Mongolian mining sector.Mongolian government encouraged the exploration of mineral resource over a long time,but the development of non-mining sectors got lost,economy is depending on one sector.Although on certain level,Mongolian mining sector using China's direct investment have affected Mongolian economy in a positive way though.Seeing that the unstability ofMongolian Government policy and legacy has already afftected foreign direct investment in Mongolia,especially to the development of its mining sector,Mongolia undoubtedly needs China's investment,Mongolian Government should take an united investment policy in mining sector by meeting the long-term strategy of China,this paper used the methods of empirical analyse,historical analyse,and documentrial material analyse,discuseed the legal environment of Mongolian foreign direct investment,Mongolian export of mineral product and also the China's investment in Mongolian.Mainly studied about Mongolian mining using China's investment,also determining currently emerging problems and reason behind it,and I concluded influencing element of itby using two-gap model.