Companies from China and Mongolia yesterday signed five business co-operation agreements worth close to US$100 million during the China-Mongolia Business Forum.

Representatives of 50 Mongolian companies are currently visiting China on a delegation led by Mongolian Prime Minister Miegombyn Enkhbold.

"Since 1998, China has been Mongolia's largest trade partner, and bilateral trade mainly covers the mining and infrastructure sectors," said Enkhbold.

"Co-operation could also expand to agriculture, tourism and stock breeding," said Sambuu Demberel, chairman and chief executive officer of the Mongolian National Chamber of Commerce & Industry (MNCCI).

But government officials from Mongolia believe hurdles still exist in bilateral trade which need to be addressed.

"Both governments should jointly study current problems and make the situation better," said Demberel.

"During the visit, we are expected to talk further with Chinese officials on strengthening China-Mongolia transportation capability and on reducing taxes and non-tariff barriers on Mongolian exports to China," Enkhbold said.

But despite growing bilateral trade, "insufficient business information exchange and material burdens are major problems we have to deal with," said Demberel.

In 2005, Sino-Mongolia trade was US$860 million, an increase of 24 per cent year-on-year. In the first nine months of this year, trade was US$1.13 billion, growing 88.8 per cent year-on-year.

MNCCI and the China Council for the Promotion of International Trade (CCPIT) have set up a website tailored for companies from both nations to exchange the latest business opportunities and to get the latest rules and regulations.

"China and Mongolia's economies complement each other, so we really hope we can strengthen co-operation," Demberel said. "Creating a free-trade environment, and reducing taxes and non-tariff barriers on Mongolia's exports to China is very important."

On Wednesday, China signed a memorandum with Mongolia offering preferential loans worth US$300 million to Mongolian companies.

Source: China Daily