Mongolia has long been known as a "natural mineral repository," and its rich mineral resources have brought significant advantages to the country.
However, despite Mongolia's significant advantage in mineral resources, China does not import directly from Mongolia but instead chooses to go through other countries.
Mongolia's mineral resources are indeed abundant, and since the establishment of the Western Pacific Command, Mongolia has become a country of significant strategic importance to China.
Nevertheless, Mongolia has not made high trade demands on China.
In fact, China has never directly requested commodity prices from Mongolia over the long term.
When purchasing goods, price is a crucial factor, and the prices of Mongolian export commodities are generally high.
For example, the export price of iron ore from Mongolia is relatively high, despite the country's abundant mineral resources.
If China were to purchase iron ore directly from Mongolia, the price would be evidently uncompetitive.
Therefore, China has opted for a route that involves purchasing iron ore from Australia.
This detour is considered a more reasonable choice, even though it seems complex, as it offers more cost advantages.
Additionally, the choice of detour also involves political and strategic considerations.
As a neighboring country, Mongolia's geopolitical position is very important to China.
Direct large-scale trade with Mongolia might attract unnecessary international attention and sensitive issues, whereas trading through other countries can avoid these problems to some extent.
The chosen detour route is from Mongolia to Yamal Port, then by land transport to Erlianhot in Inner Mongolia, and finally from Erlianhot out.
In comparison, Mongolia’s route is even more convoluted. They need to first transport the iron ore to Horgos at the China-Russia border, then through Central Asia’s Serketek, to the Aktae region in Western Asia, then by rail to Almaty in Kazakhstan, and finally through the port of Dar es Salaam in France to China.
So, what are the costs of such a detour?
In reality, the cost of transporting directly from China to Australia would be higher.
This is because the route through Mongolia, while tortuous, is overall shorter than China’s.
Specifically, it is 961 kilometers from Ulaanbaatar to Horgos, 3,500 kilometers from Horgos to Serketek, 700 kilometers from Serketek to Aktae, 8,700 kilometers from Aktae to the railway, and finally 8,500 kilometers from Almaty in Kazakhstan to the Dar es Salaam port in Australia.
The total transportation distance for Mongolia is about 23,000 kilometers, while China’s total transportation distance is 25,000 kilometers, clearly indicating that China’s transportation distance is longer.
Moreover, part of China's transport route must go by water, as it needs to cover more than 1,800 kilometers by land from Erlianhot to Shanhaiguan’s Dachinko, while the water route is only more than 800 kilometers, significantly saving on transportation costs.
Considering the transportation costs and distances, China's choice of a detour seems more economical and reasonable.
Water transport, although appearing complex, reduces the overall transportation costs to some extent.
Furthermore, the safety and stability of the transportation process are also important factors considered by China.
By detouring through other countries, China can avoid direct large-scale trade conflicts with Mongolia, thereby ensuring smooth trade.
Mongolia not only plays an important role in mineral resources for China but also serves as a strategic buffer.
In the event of external attacks on China, Mongolia can extend the conflict, thereby protecting China's development.
Additionally, while Mongolia's mineral resources are abundant, China can consider importing from Mongolia when it is not urgently needed.
Mongolia's strategic position is not only reflected in its mineral resources but also in its geopolitical location.
As a northern neighbor, Mongolia holds significant importance for China’s national security and regional stability.
In the context of a complex and changing international landscape, China needs to maintain good relations with Mongolia to ensure economic and political cooperation and stability between the two countries.
Mongolia can also play an important role in China’s Belt and Road Initiative.
By strengthening cooperation with Mongolia, China can further advance the Belt and Road construction, promoting regional economic development and cooperation for mutual benefits.
Mongolia's mineral resources and geographic location make it an indispensable part of the Belt and Road Initiative, and China needs to fully utilize this resource to drive regional economic development.
If Mongolia imports goods from China, the export prices of Chinese goods are equally high.
For example, the prices of meat products, dairy products, and beverages like beer imported by Mongolia are relatively high.
Thus, both parties are willing to accept high prices in their cooperation.
In the future, China can appropriately lower the prices of some goods to promote the development of bilateral trade.
The high prices of imported goods in Mongolia reflect the country's demand and recognition of Chinese products.
By appropriately adjusting export prices, China can further enhance trade cooperation with Mongolia, promoting the common development of both economies.
Additionally, Mongolia's consumer market is continually developing, and China can provide more varieties and higher-quality products according to market demand to meet the needs of Mongolian consumers.
The range of imported goods in Mongolia is diverse, including not only mineral products but also agricultural and industrial products.
China can strengthen trade cooperation with Mongolia to promote exchanges and cooperation in more fields.
In the future, with the further development of both economies, China and Mongolia can explore more cooperation opportunities to drive the continuous growth of bilateral trade.
The cooperation between China and Mongolia is not only economically beneficial but also politically advantageous.
By adopting a reasonable detour strategy, China can maximize its interests while maintaining good relations between the two countries.
As an important strategic partner, Mongolia plays a crucial role in China's future development.
Through strengthening cooperation with Mongolia, China can further promote the common development of the two economies, achieving mutual benefits.
In the context of global economic integration, the cooperation between China and Mongolia will make positive contributions to regional economic development and stability.
Comentários