What the new Mongolia-China agreement says
23th of 1, 2014
During his visit to China last month, Prime Minister N. Altankhuyag signed with his counterpart Li Keqiang a document that outlines key areas of cooperation for the development of the two countries’ strategic partnership in the medium and long term. The following is the text of parts of the agreement, selected on the basis of their relevance to the interests of our readers. The translation is neither official nor authorised.
1. Both parties will pursue the improvement of the investment policy and related laws, and secure its continuity and stability, encouraging exchange of business visits and furtherance of relationship. They will seek various ways of strengthening the partnership and encourage businesses of both countries to take up more community responsibilities. Both parties will act responsibly in regard to protection of the environment and will consistently support investment in advanced technology.
2. Both parties will continue to implement the terms of the agreement regarding protection of investment and the two governments will take steps to avoid double taxation, prevent tax evasion, and to safeguard the legitimate interests of investors.Both parties will strictly follow World Trade Organisation rules and the terms of other bilateral contracts between them, and will encourage and facilitate the other party’s businesses to invest in their own country.
3. The signatory parties will strengthen their partnership in the sector of work force and social security.
Mineral and energy partnership
1.The two parties will continue to strengthen the partnership in the mineral sector, for example by successfully implementing present partnership projects such as the one in the Tumurtein Ovoo zinc deposit, and will proactively explore opportunities to set up new partnerships in other large and medium proposals.
2. The two parties will follow market principles and firm up business partnerships in the coal sector in both countries, and continuously strengthen their coal trade ties, working together to upgradet echnology and provide economic opportunities, and will actively cooperate in coal and chemical industries.
3. The two parties will support all business relationships and partnerships in large projects such as Tavan Tolgoi and Oyu Tolgoi.
4. The Chinese side will support processing of mining products inside Mongolia and production of value-added products by Mongolian domestic companies. Both parties will support their businesses to play an active role, in partnership with each other and subject to regulatory guidelines, in the construction and management of the Sainshand industrial park.
5. The two parties will strengthen their cooperation in the petroleum sector, as in the Tamsag and Zuunbayan projects. The Mongolian side will strive to sustain an agreeable environment for the projects, and the Chinese side will help their own businesses set up petroleum refineries in Mongolia. Companies from both countries will follow trade guidelines to ensure mutual profitability through sale of petroleum products. The Chinese party will explore opportunities to supply more petroleum products to Mongolia to meet rising demands there.
6. Both parties will continue to strengthen their partnership in the energy sector. The Chinese party will continue to supply energy for the building of large scale projects such as the Oyu Tolgoi copper deposit. They will cooperate in building a power plant based on realistic demand projections and utilising output from Mongolian coal mines. They will also actively study the issue of exporting energy to China. The parties will modernise Mongolian power plants currently in operation and will support the involvement of Chinese companies in building new plants. Both parties will encourage their businesses to cooperate with each other in the clean energy sector that includes wind and solar energy. The Chinese party will actively study the Asian Energy Super Network proposal the Mongolian party has presented.
7. The two parties will cooperate in the area of using nuclear energy for peace. The Mongolian party will support the Chinese party in participating in the Gurvanbulag uranium project.
1. The Mongolian party has invited Chinese financial institutions to invest in the Mongolian road and transportation sector and asked for loans on special terms.
2. Both parties will support the active participation of Chinese businesses in the construction of the new Mongolian rail road, through both investment and work on the ground. The Chinese party has expressed its readiness to enter into bilateral or multilateral agreements with Mongolia for the upgrading of the Ulaanbaatar Railway, and for constructing double tracks. The parties will expedite the construction of Shiveekhuren-Sekhee, Gashuunsukhait-Gantsmod, Bichigt-ZuunHatavch, Sumber-Rashaant and such other railway lines, and of their transborder railway crossings.
3. The two parties will strengthen the transport partnership to facilitate the export of Mongolian mining products to third countries.
They will also work jointly to reactivate a 1991 agreement that allows Mongolia access to sea ports across Chinese territory.
Both parties will explore ways to gain fully reactivate provisions of a 1955 agreement between them on border rail roads.
4. The Chinese party will support and assist in the establishment of the Mongolian party’s project in Tianjin in Binhai province.
5. The parties will actively work together in the roads and transport sector. The Chinese party has expressed its willingness to participate in a bigger way in road construction in Mongolia. Both parties will actively implement the Mongolia-China Transport Agreement, deepening their true partnership in international transport.
6. Both parties will implement the agreement between them regarding cooperation onsearch and rescue missions relating to private aircraft.
7. Both parties will promote air traffic relations, actively seeking opportunities to increase the number of flights and routes between the two nations.