Study On The Mode And Countermeasure Of Economy And Trade Cooperation Between China And Mongolia

Thirty years ago, with the fall of Soviet Union and the drastic changes in Eastern Europe, China and Mongolia reformed the economic structures and opened to the outside world. Meanwhile, under the market economic situation, instead of the clearing account trade in the planned economy times, terms of trade between China and Mongolia became free trade. During the economic globalization and the integration of world economy, China and Mongolia have joined the WTO. China and Mongolia have a strong trade complement and economic cooperation. The total amount is more than two billion dollars. However, from the recent trends of developments of the world free trade area, customs union, common market and regional economic integration, in the next few years, the terms of trade between China and Mongolia will have a fundamental change.Based on the comparative advantage theory and the developments of free trade area, the author combined the present conditions of China-Mongolia trade complement and economic cooperation. The author also analyzed the features and the shortcomings of the recent term of China-Mongolia trade cooperation. According to the good neighborly partnership of mutual trust and the relationship between the WTO members, in the next years, the bilateral trade between the two countries under the circumstances of the market economy will make an increase of 40% of the total amount. The important areas of the trade complement and economic cooperation have been identified. Several basic rules of the China-Mongolia trade cooperation form have been made. The author also explained the characteristics, connotations and the promotion strategies of China-Mongolia free trade area.