An encouraging factor for EXR has to be the Mongolian...

An encouraging factor for EXR has to be the Mongolian Government's apparent strong focus on economic development for the country. In recent weeks Government ministers have had in person meetings with China, USA, Japan and Korea and the primary focus has always been on arrangements that offer opportunities for economic growth. Whilst China has been keen at these contacts to also link in political understandings and arrangements, Mongolia has been careful to position itself for maximum benefit by self-promoting as an independent power that has good relationships with other countries (referred to as third neighbours). It obviously does not want to have all its eggs in one basket......

The current round of diplomacykicked off with a visit from U.S. Deputy Secretary of State Wendy Sherman, whowas in Ulaanbaatar in late July. According to the U.S. State Department,Sherman “highlighted the importance of the U.S.-Mongolia Strategic Partnershipand discussed ways to strengthen Mongolia’s democratic institutions, enhanceits sovereignty, and diversify its economy.” She demonstrated the U.S. emphasison human rights but overall Mongolia was careful to avoid embracing U.S.catchphrases that have earned China’s ire.

That doesn’t mean Ulaanbaatar wasshy about embracing its partnership with Washington. According to the read-outfrom Mongolia’s Ministry of Foreign Affairs “The visit of a high-leveldelegation from the United States – Mongolia’s ‘third neighbour’ and strategicpartner – is significant in consolidating Mongolia-U.S. strategic partnership,and strengthening the friendly relations between our two countries.” That said Mongolia’slong-term priorities for the relationship are probably economic, rather thanstrategic.

While Sherman was in Ulaanbaatar,Mongolia’s Prime Minister was in Japan from July 21 to 25 for a working visit. After Japan he headed to South Korea, where he met with Prime Minister Kim Boo-kyum, the head of South Korea’s Export-Import Bank, and some infrastructure investment companies.

Meanwhile Mongolian ForeignMinister Battsetseg held meetings with her Chinese counterpart, Wang Yi, whotold her that “China has always put its relations with Mongolia in an importantposition in its neighborhood diplomacy and hailed the priority given byMongolia to the development of relations with China in its foreign policy.”

“China will help Mongoliaaccelerate development to the best of its ability, and stands ready tostrengthen cooperation with Mongolia in the fields of mining, energy, finance,agriculture, husbandry, and infrastructure construction,” Wang pledged. The twosides set a goal to increase bilateral trade volumes to $10 billion

China’s statement emphasized thatboth countries “will insist on mutual respect for each other’s independence,sovereignty and territorial integrity, respect for the development path chosenby each other, and respect for each other’s core interests and major concerns.”From a Chinese perspective, this would mean a promise from Mongolia not to joinin the U.S.-led criticizing of China’s human rights violations or its actionsin the South China Sea and Taiwan Strait.

Chinese Defence Minister WeiFenghe visited Mongolia late July where he and the Defence Minister “discussed cooperation in defence, international and regional security, and other issues of common interest.” They expressed a readiness to closely cooperate in exchanges, consultative meetings on defence and joint drills

This should not necessarily takenthat Mongolia is somehow taking China’s side. The former wants to grow itseconomy, which will necessarily hinge on taking advantage of its proximity toChina. However, Mongolia is also wary of becoming overly reliant on its largerneighbour, and wants to safeguard its democracy and sovereignty.