Coal-rich Mongolia aims to boost China trade ties

FE Team | Published: June 15, 2026 23:11:08

BEIJING, June 15 (Reuters): Mongolia hopes to boost trade by more than a tenth this year with China, the biggest destination for its exports of coal and minerals, setting a target that will further boost economic dependence on its giant neighbour.
Two-way trade is expected to reach $20 billion this year, President Ukhnaa Khurelsukh told Chinese Foreign Minister Wang Yi in Ulaanbaatar, the capital, over the weekend, on the latter's first visit in nearly four years.
That represents a jump of more than 10 per cent from 2025, despite the Iran war constraining the economic outlook for the world's second biggest economy at a time of languishing domestic demand.
Two-way trade fell to $17.7 billion last year from $18.3 billion in 2024, Chinese customs data shows.
In a joint statement on Monday, the neighbours agreed to boost economic and trade ties, but gave no specific target on trade.
Every 1 per cent of growth in China's economy can drive an increase of 4 per cent in Mongolia's exports and boost its economic growth by 0.6 per cent, Wang told a press conference on Saturday after meeting his Mongolian counterpart, citing estimates by international bodies.
"The trade momentum is quite positive," said Xu Tianchen, senior analyst at the Economist Intelligence Unit. "Mongolia's copper output is rising, and China stands ready to take it."
China's demand for Mongolian coal is also likely to grow, he said, after a mining disaster killed 82 people in northern Shanxi, putting pressure on domestic coal supplies.
Landlocked Mongolia, sandwiched between China and Russia, exported more than 80 million metric tons of coal last year, almost all to its southern neighbour, Chinese customs data shows.
Connectivity will be further boosted by a second cross-border railway link now being built between the countries, Wang said.
"All eyes are on the completion of the Gashuunsukhait-Gantsmot border crossing railway, which will facilitate trade even further," added Xu.