Tsedenjav Sukhbaatar

Editor's Note:

Mongolian President Tsakhiagiin Elbegdorj kicks off his visit to China on Monday. The country's recent announcement that it will be a permanently neutral state has raised many questions, and cooperation between China and Mongolia has ramped up rapidly as China's "One Belt, One Road" initiative is progressing. What will both leaders discuss? What is the cause of effect of Mongolia's pursuit of neutralism? And what can we expect from a reinforced bilateral relationship? Global Times (GT) reporter Liu Zhun talked to Mongolian Ambassador to China Tsedenjav Sukhbaatar (Sukhbaatar) about these issues.

GT: What is the purpose of President Elbegdorj's visit to China?

Sukhbaatar: The visit is a return visit after Chinese President Xi Jinping's state visit last year. During Xi's visit, both countries made a joint announcement about establishing a comprehensive strategic partnership. Elbegdorj's visit aims to reinforce this partnership and hammer out more details. For example, both sides agreed that China would provide preferential buyer's credit worth $ 1 billion to Mongolia during Xi's visit. This time, both countries will sign a framework agreement, by which the credit can be used to build the Eg River hydropower station.

GT: Why would Mongolia want to be a permanent neutral state?

Sukhbaatar: Permanent neutrality was adopted step by step, reflecting the continuity of Mongolia's foreign policy. After 1990, Mongolia transformed its foreign policy, declaring a non-aligned stance, rejecting the deployment or passing of a third country's troops on Mongolia's soil. We have also proposed denuclearization and got recognition from the UN Security Council. In terms of foreign affairs, Mongolia has established a comprehensive strategic cooperative partnership with both China and Russia, in which way Mongolia's peripheral situation can be stabilized. Thus, Mongolia believes it is time we should declare permanent neutrality.

GT: It took Mongolia 21 years to finally gain recognition of its nuclear-free status from the UN Security Council. A country which pursues permanent neutrality also requires international approval. Will Mongolia encounter problems in its process of neutrality?

Sukhbaatar: The decision was made out of our own consideration, and it doesn't have to be approved by all other countries. There is no doubt that we should try our best to make this policy understood by the international community.

The neutrality policy is not a short-term tactic, it is a long-term national policy that could last hundreds of years. We hope our neutrality could be reinforced in this process.

GT: Analysts say Mongolia, sandwiched between China and Russia, seeks neutrality because it doesn't want to be a chess piece in major-power rivalry. What do you think?

Sukhbaatar: Before we decided to be a neutral state, we had already established a comprehensive strategic cooperative partnership with both our neighbors on an equal footing. The priority of our foreign policy continues to be developing amicable ties with China and Russia. I don't think Mongolia will be used as a tool by any major power under these guidelines. On the contrary, Mongolia's announcement of permanent neutrality under this circumstance can further reflect its sense of responsibility and commitment to the sustainability of the policy.

GT: Will the neutrality compromise Mongolia's third neighbor policy?

Sukhbaatar: No. As we insist on our tradition of maintaining good relationships with China and Russia, neutrality will provide greater space and convenience for Mongolia to develop its third neighbor policy.

GT: China and Mongolia have agreed to link the "One Belt, One Road" initiative with the "Steppe Road" initiative. What can we expect from Elbegdorj's visit in this aspect?

Sukhbaatar: Mongolia has shown a lot of interest in China's "One Belt, One Road" initiative since it was proposed, and is willing to be involved in. Mongolia hopes that it can join China's "One Belt, One Road" initiative with Russia's Eurasian Economic Union, by which way there can be a China-Mongolia-Russia economic corridor. The guidelines for the corridor are about to be settled.

Mongolia has five "channels" to be integrated in the corridor. It can provide railway, highway, grid, oil pipeline and gas pipeline to the project. Russia's abundant resources can be transported to China and even further to Southeast Asia through these channels in Mongolia.

During our president's visit, there will be two major issues discussed. First is the joint building of the Eg River hydropower station. Second is about a power station supported by a mega coal mine in Mongolia.

GT: Negotiation between a Chinese enterprise and Mongolia about the exploitation of the Tavan Tolgoi (TT) coal mine has lasted for years and met many obstacles. Is the slow process an outcome of Mongolia's domestic political conflict? Will the president's visit help promote the deal?

Sukhbaatar: Mongolia's politics is based on a multi-party system, so every major decision demands a full involvement and considerations of different political forces. The outside has different opinions for Mongolia's decision-making process in the TT coal mine, but generally speaking, both sides are heading to a positive end.

The exploitation of the TT coal mine is a mega project, and it requires prudence and full consideration in case more problems come out during implementation. I don't think the current debate is unnecessary. The wide communication is the right way to solve problems, be they obvious or latent.

The negotiation has come to the last phase. We know that due to the long negotiation we have missed the golden era when China's coal price was high. But considering its vast deposits, the world's largest untapped coal mine, we still believe it is necessary to put deliberation as a priority.

The president will not hammer out the deal during his visit, but I think he could do whatever he thinks right to lead the deal to a positive end.

GT: China is Mongolia's largest trade partner, and 90 percent of Mongolian products are exported to China. How will Mongolia deal with China's economic downturn? Will the goal of $10 billion of bilateral trade in 2020 be achieved as expected?

Sukhbaatar: Along with China's economic downturn and its commitment to deal with air pollution, China has scaled down its consumption of coal, which, as a result, had a negative impact on Mongolia's export of coals.

Mongolia is restructuring its economy, reducing its excessive dependence on coal mining and pursuing economic diversification. Agriculture will be the focus of the next phase of development, especially the export of meat products to China. I believe these efforts will help the $10 billion goal fulfilled.