Political And Economic Analysis Of China's Investment In Mongolia

Foreign direct investment has been a crucial source of Mongolian economic growth in last two decades.Since 1990,Mongolia has undergone a difficult transition towards a free market system.Following the democracy,the mining sector has been moving to new level dramatically.For instance,the FDI to mining sector increased to approximately 25%in 1999 from Zero in 1990.According the statistical data,most of foreign countries'interest focusing on mining and trade sectors.Out of these countries,the largest amount of FDI towards Mongolia's trade as well as mining sectors from China.The purpose of this study is examine to the deepening economic relations between Mongolia and People's Republic of China.At first,the diplomatic ties of two countries begun with diplomatic relations in 1949.And now,two countries agreed to upgrade level of Strategic partnership to the level of Comprehensive Strategic Partnership in 2014.China became the second largest trading partner of Mongolia in 1995 and the largest in1999 till now.Today,de facto Mongolia has been only one largest trading partner including both export and import.As well as China has been the largest investing country for last decade.For example,almost 90 percent of Mongolia's export going to only China.And more than 60 percent of the total foreign investment to Mongolia coming from Chinese companies.This paper also focusing on FDI trends in the mining sector.Mongolia is geographically the 19^th largest country in the world and has much natural resources.Additionally,China's obstacles to investing Mongolia,and positive and negative impacts of China's FDI.As well as,the thesis addresses“China-Mongolia-Russia”Economic Corridor,which is including China's“Silk Road”,Mongolia's“Steppe road”,and Russia's“Trans-Eurasian Railway”.The economic corridor will become an important bridge to connecting Asia and heart of Europe.