Study On China’s Direct Investment In Mongolia

At present, economic globalization sweeping across the world, at the same time,economic ties more and more closer between nations. As the development of the relationships in economic and trade exchanges between China and Mongolia, more and more company and businessmen are targeting to Mongolia.Nowadays, Chinese investment in Mongolia is also rising, and China is becoming the largest source of foreign investment in Mongolia. Based on this,China has easily become Mongolia’s largest trading nation. However,the problem has also been revealed.Mongolia is China’s important neighbors, they share a long border, and they have similar level of economic development, meanwhile,they are both developing countries.With Mongolia’s economy taking off, the trade between China and Mongolia are gradually deepen, and China has become Mongolia’s most important trading partners as the position is consolidating.China’s influence on Mongolia is gradually deepened. In 2013, according to statistics from the Mongolian Foreign Investment Promotion Bureau, in the past 11 years, China has been Mongolia’s largest trading partner, while China is also Mongolia’s largest source of imports and the largest export destination.In he first half year of 2014, the trade volume between Mongolia and China has hit a new high record. There are more than 50 percent of the import and export trade volume from China in Mongolia’s international trade. Therefore, studying the Chinese direct investment in Mongolia not only has a good reference for Chinese multinationals, but also has a good reference for the management of foreign capital in Mongolia. First, this paper mainly analyzes the investment environment in Mongolia, which reveals some unfavorable factors in the development of foreign business in Mongolia, including the law is not perfect, the poor infrastructure, the political instability and other factors. Then based on the Chinese enterprises, this paper has find the problems that when Chinese companies are investing in Mongolia, which includes the lack of overall planning, irrational industrial distribution, low commodity credit and other issues. Finally, this paper has given countermeasures based on the two aspects of Mongolia and China.To solve the problem that Chinese investment in Mongolia requires the efforts of the Chinese government and enterprises, but also inseparable from participating of the Government of Mongolia.Only joint efforts in China to Mongolia have invested, the economic cooperation between the two countries will be good, which can achieve common development and benefit the peoples in two regions.