The influence of international logistics between China and Mongolia on Mongolia's foreign trade and the Countermeasures

Abstract

This article will focus on discussing the status quo and existing problems of China-Mongolia foreign trade cooperation and the new opportunities brought by the “Belt and Road” initiative to China-Mongolia regional cooperation. Mongolia is located on the Mongolian plateau in Asia and is a landlocked country. It borders China on three sides and the border between the two countries is 4,710 kilometers long. International logistics plays a vital role in Mongolia's social and economic life. As a landlocked country, Mongolia's transportation industry mainly includes air transportation, land transportation and water transportation. Since the 21st century, the two countries have carried out comprehensive cooperation in the fields of economy, science, entertainment and education, and have achieved good results. In terms of major business cooperation, China and Mongolia are gradually shifting from their previous main border trade cooperation method to inland regional cooperation. The empirical research of landlocked countries shows that a 1% increase in a country’s logistics performance index will increase exports from 2.84% to 3.27%, while a 1% increase in the logistics performance index of transit countries will increase exports to 1.10-1.20%. As an important node country along the “Belt and Road”, Mongolia can only seize the opportunity and use good countermeasures to develop logistics and economic trade.