China-Mongolia Business Dialogue: A Good Opportunity

On October 29, the “China-Mongolia Business Dialogue” co-hosted by Boao Forum for Asia (BFA) and Business Council of Mongolia (BCM) was held during the 2nd BFA Global Economic Development and Security Forum (GEDS). More than 60 entrepreneurs from China and Mongolia gathered in Changsha to discuss the cooperation space and precise cooperation areas between China and Mongolia through face-to-face exchanges. H. E. Ms. SHEN Minjuan, Chinese Ambassador to Mongolia, H. E. Mr. Tuvshin BADRAL, Mongolian Ambassador to China, Mr. CHEN Gang, Chairman of the Changsha Municipal Committee of the Chinese People's Political Consultative Conference, and Mr. WU Shuguang, Vice Chairman of China Council for the Promotion of International Trade Hunan Sub-Council, delivered speeches. The Dialogue was co-moderated by Ms. YU Xiayuan, President of China Council for the Promotion of International Trade Changsha Branch and Mr. Bayanjargal BYAMBASAIKHAN, BCM Vice-chair.

In her video remarks Ambassador SHEN said that There is ample room for cooperation in implementing the Belt and Road Initiative (BRI) and Mongolia’s Steppe Road Plan. The resilient Chinese economy, with its 5.5% GDP growth in the first half of this year, offers a huge market for potential Mongolian companies. Mongolia estimates that, for every 1% of economic growth of China, the export of Mongolia in 6 months to a year will increase by 4% and the GDP by 0.6%. Next year will be the 75th anniversary of the establishment of diplomatic ties between the two countries, the 30th anniversary of the Treaty on Friendship and Cooperation, the 10th anniversary of President Xi Jinping’s state visit to Mongolia and also the 10th anniversary of the Comprehensive Strategic Partnership. It will be a crucial time for development. The future of the bilateral relations will only be better.

Ambassador Badral said in his video remarks that Mongolia is one of the BFA initiators and has been actively participating in the activities of the Forum. This event will be an important impetus for further strengthening bilateral ties and seeking opportunities for deepening cooperation. The new direction of bilateral cooperation will be towards green economy and new energy. Mongolia is ready to cooperate with China in the direction of export-oriented energy production using abundant and renewable resources of Mongolia such as sun, water, and wind.

Mr. CHEN Gang said that Changsha and Mongolia are culturally compatible, economically complementary and industrially compatible. Last year, the total import and export volume between Changsha and Mongolia reached 170 million yuan, an increase of 49% over the previous year. Changsha enterprises have written many stories of cooperation in the fields of energy, construction machinery, environmental protection infrastructure and so on. Changsha will take new measures in the fields of high-quality development, high-level opening up, innovative research and development, and business environment, and look forward to achieving more mutually beneficial two-way cooperation with Mongolian entrepreneurs in the future.

Mr. WU Shuguang said that the two-way investment and trade between Hunan Province and Mongolia continued to rise, with the total import and export volume between Hunan Province and Mongolia reaching 17 million US dollars in 2022, an increase of 45% over the same period last year. Hunan enterprises have successively undertaken key cooperation projects in the fields of energy and environmental protection infrastructure in Mongolia. CHINA RAILWAY Express opened its new railway route from Changsha to Ulaanbaatar in 2022, which will further boost the economic and trade exchanges between Hunan and Mongolia and deepen the cooperation between regional industrial chains. Hunan has a good momentum of development and welcomes Mongolian entrepreneurs to invest and start businesses here.

During the panel discussion, entrepreneur representatives from China and Mongolia spoke one after another, expressing their expectations for the development of Sino-Mongolian cooperation and exchanging specific areas of cooperation.

Mr. Bold ITGEL, Senior Advisor of NovaTerra LLC and BCM Board Advisor said that Mongolia has the advantages of abundant natural resources and very young population, but the financial industry and capital market are still in the early stage of development and can not support the capital demand for mineral resources development. In addition, Mongolia is rich in renewable energy and has great potential for cooperation, and projects in the fields of natural gas, hydrogen and rare earth minerals have great potential for cooperation and development.

Mr. ZHANG Li, Deputy General Manager of China Power Engineering Consulting Group Co., Ltd, suggested that Sino-Mongolian cooperation in the field of energy and electricity need to start with think-tank cooperation. Only by doing a good job in economic analysis and feasibility study with Mongolian energy-related research institutions, can the cooperation project be carried out more smoothly. He expressed his willingness to make his own contribution to green, low-carbon energy cooperation and to friendly exchanges between China and Mongolia.

H. E. Mr. Dashdorj ZORIGT, former Minister of Mineral Resources and Energy of Mongolia and Executive Director of the Mongolia Development Strategy Institute said that tourism, innovation, especially in the financial field, and renewable energy development in Mongolia are all potential areas worthy of development by Mongolian and Chinese enterprises. He looked forward to the cooperating with Chinese enterprises in Mongolia in the fields of insurance, mobile communication, banking, financial technology, energy, and mining. He stressed that good state-to-state relations and a good political environment are cornerstones and guarantees for good industrial and commercial relations.

Mr. Colin YANG, Vice President and Chief Brand Officer of Trina Solar Co., Ltd., said that leaders of China and Mongolia proposed to cooperate in the field of renewable energy, which is a good opportunity for Trina Solar, a photovoltaic company. He introduced Trina Solar's achievements in the field of solar energy industry and expressed his expectation to cooperate with Mongolian partners to jointly promote the development of the solar energy industry.

Ms. Dendevsambuu ONCHINSUREN, Founder & Managing Partner of Onch & Company LLC shared the advantages and challenges of Chinese companies investing in Mongolia. Regarding the advantages, she said, First, Mongolia and China have achieved strategic cooperation, and Chinese companies can land in Mongolia within 18 months without paying taxes. Second, interest rates and taxes in Mongolia are lower, and taxes are reduced from 20% to 5%-10%. In terms of Challenges, she pointed out that there are specific restrictions such as the need for Chinese companies to submit social security taxes in both countries.

Mr. LUO Erxi, General Manager of Sany Heavy Industry Russia Region said that Sany Heavy Industry has been actively participating in Mongolia-related construction, including the construction of national highways, Olympic villages and Olympic parks, and railway projects, and has forged deep friendship with Mongolian friends. We are willing to continue to invest in the construction in Mongolia and contribute to the well-being of the two peoples.

Mr. Davaadorj GANBOLD, Chairman of Khanbogd Iraeta LLC said that compared with China, Mongolia started the reform relatively late, the pace is not fast enough, the overall economic scale is relatively small, but there is great potential for development. The achievements of China's reform and opening up have made Mongolia see the dawn. At present, the friendly relations between the two countries provide a guarantee for bilateral cooperation.

Ms. Susan XU, General Manager of Hunan Sinoboom Intelligent Equipment Co., said that safety issues deserve great attention. China introduced safety regulations related to aerial work in 2015, so aerial work equipment has developed rapidly in China in recent years. If Mongolia can also introduce corresponding policies in the process of the development of the industry, it will be conducive to the healthy development in this field.

Mr. HU Xing, Partner of Ernst & Young Co. Ltd., said that there are many opportunities for Sino-Mongolian cooperation. First, after the completion of the Sino-Mongolian Railway, the overall transport capacity has been greatly improved, which brings opportunities for the export of Mongolian coal. Second, there are opportunities for Sino-Mongolian cooperation in the field of mining and new energy. Third, five major banks in Mongolia are introducing strategic investors. Fourth, the satellite city of Ulaanbaatar is carrying out the construction of free trade zones.

Ms. Ivy MAO, CEO of Hunan C-K'ingdom Technology Group Co. Ltd., introduced the achievements of C-K'ingdom Group in research and development, production and marketing services of new technologies, new materials and wires and cables, and she welcomed Mongolian entrepreneurs to visit C-K'dingdom to create new cooperation opportunities for the economic development of China and Mongolia.

Mr. Bayasgalan SERGELEN, Senior Adviser of Future Energy Mongolian Hydrogen Council, said that Mongolia has great prospects for development in the field of hydrogen energy production and transportation. Some sites with abundant hydrogen energy storage are only 400 kilometers away from China, which has the potential to become a hydrogen energy supplier for China and has attracted a lot of investment. We will continue to promote hydrogen energy production and establish a policy framework to ensure the successful implementation of the project.

Mr. DONG Bin, Chief Representative of Sino-International Entrepreneurs Federation, said that China and Mongolia have complementary resource endowments and broad space for industrial cooperation. He stressed that the construction of railways between the two countries is a clear signal that Mongolia is ready, and that the alignment of railway gauges can greatly improve railway transportation efficiency. Currently, it is a good time to promote bilateral economic and trade cooperation.

Right after the dialogue, “Mongolian Business Cocktail” was held, creating a relaxed atmosphere for the participating entrepreneurs from the two countries to exchange views.