A Comparative Study Of Mining Development Between China And Mongolia

Mongolia is located in East Asia,bordered to Russia in the north and China in the south.Mongolia is a landlocked country,with a population of more than 3 million,it is the least densely populated country in the world.Most of the land is covered by grasslands.There are many mountains in the north and west,and Gobi desert in the south.It is the 19 th largest country in the world.Ulan Bator is the capital of Mongolia.Economic activity in Mongolia has long been based on herding and agriculture,although development of extensive mineral deposits of copper,coal,molybdenum,tin,tungsten and gold have emerged as a driver of industrial production.In Mongolia mining takes over 21.8% of GDP,and agriculture takes 16% of GDP,dominant industries in the composition of GDP are retail trade and service,transportation and storage,and real estate activities.As of 2006,68.4% of Mongolia's exports went to the PRC,and the PRC supplied 29.8% of Mongolia's imports.Mongolia is ranked as lower-middle-income economy by the World Bank.Some 22.4% of the population lives on less than US$1.25 a day.In 2011,GDP per capita was $3,100.People's Republic of China is the third largest country in the world,after Russia and Canada,with the largest population in the world.The land area is 9 million 600 thousand square meters and occupies 21.9% of the total area of Asia.China has 14 countries in East Asia,with North Korea,Russia and Mongolia,with South Korea,Japan and Taiwan.Boundary and the border band length is approximately 22 thousand kilometers.China's economy has been one of the world's fastest-growing with annual growth rates consistently above 6 percent.According to the World Bank,China's GDP grew from $150 billion in 1978 to $12.24 trillion by 2017.Since 2010,China has been the world's second-largest economy by nominal GDP and,since 2014,the largest economy in the world by purchasing power parity(PPP).Last few years China became the world's largest exporter and second-largest importer of goods.For thousands of years,the people of Mongolia and China have had and developed friendly economic and cultural exchanges.On October 16,1949,the People's Republic of China and Mongolia announced the establishment of foreign policy and ushered in a new era of Sino-Mongolian relations.From 1949 to 1962,Sino-Mongolian diplomatic relations developed well.Today,Mongolia-China relations have reached a strategic level and the two-way high-level visits have been increasing with the two countries strengthening public relations and strengthening economic and financial cooperation.That's why economic cooperation,trade and financial cooperation are increasingly expanding,with the cooperation of all sectors.The number of trade between Mongolia and China is about 100 times higher than the beginning of the 90's,and the two countries have reached a high level of historical development.This research is a comparative study of mining development between China and Mongolia.This research is outspoken about economics,the role of natural resources to Mongolia's economy,resources' quantity,and Mongolian and Chinese natural resources' situation.Also this paper will research about how natural resources' export affects to certain country's economics.Mongolian economic growth belongs to export of the mining resources,and we predict that the export of mining resources should affect positive to economic growth.This paper also include about Chinese affection to Mongolian economy,relationship of China and Mongolia,studying of export mineral resources with China and comparative research of China and Mongolian mining sector.I targeted to show positive and negative affections of how mining affects to Mongolian economic,and environment in reality.Also this thesis tried to show the trade between Mongolia and China in the future.My thesis consists of six chapters;introduction is addressed in the first chapter including the significance of the study,literature review,main argument,research methods,and structure of thesis.Second chapter contains about the world mining sector,and also will mention about the rehabilitation and natural resources.Third chapter researches about Chinese mining sector,talks about how mining sector affects the economy,and contains about the taxation regulations.The fourth chapter researches about Mongolian mining sector and how it is affecting the economy.The fifth chapter is a comparative research on Sino-Mongolian mining sector,foreign trade between China and Mongolia.Finally,the last chapter includes conclusion and recommendations.In this context,due to the geographical proximity of China and Mongolia,the strong complementarities of economic structure,and the deepening of bilateral relations and the large financial differences in China and Mongolia and other factors will be developed the future Sino-Mongolia economic cooperation prospects such as “Silk Road Economic Belt " and " the 21 st century maritime Silk Road initiative,etc.Thus,the two countries' financial cooperation should continue to increase mutual political trust,strengthen cooperation in development finance and strengthen the bilateral strategic connection.