The signing of a large natural gas order between China and Russia has been delayed, and Mongolia is

Mondo International Updated on 2024-02-05

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With the rapid development of China's economy, as one of the world's largest energy consumers, China's demand for natural gas is growing unstoppably. As the world's largest natural gas exporter, Russia has abundant natural gas reserves, making it an ideal partner for China's stable natural gas. Therefore, the large natural gas orders signed by China and Russia have attracted much attention.

However, the signing of the large Sino-Russian gas deal has encountered some resistance, resulting in a delay in finalization. Among them, Mongolia has a particularly special status. As a country sandwiched between China and Russia, Mongolia's plan to use the natural gas pipeline through Mongolia has brought great opportunities to Mongolia, but it also faces many unstable factors. Therefore, when the signing of a large natural gas order between China and Russia has been delayed, Mongolia has begun to increase its overtures to China.

Aware of the importance of the natural gas pipeline for its own development, Mongolia actively promotes the tripartite summit with China and Russia, hoping to strengthen close cooperation between the three countries, especially to enhance the relationship between China and Mongolia, and establish friendly relations with China. Mongolia hopes to take advantage of this partnership to obtain stable natural gas**, which will generate tolls and create more jobs. According to Mongolia***, the project will bring more than $2 billion in revenue to Mongolia every year.

However, considering the impact of the previous rare earth incident on Sino-Mongolian relations, Mongolia** insisted on playing against China, which led to the delay of the project. In order to avoid another conflict, China has put forward higher requirements for the security and stability of Mongolia through it. If Mongolia changes its position again and directly cuts off gas between China and Russia**, it will put China in a more passive position. Therefore, China prefers to spend more money to bypass Mongolia and not put its lifeline in the hands of others.

However, for Mongolia, the gas pipeline through Mongolia represents a rare opportunity that they do not want to miss. In order to win the signing of natural gas cooperation projects with China, Mongolia promised to build seven dry ports, improve the efficiency of China, and promised to double the export quota to China in the future. Last year, China's total foreign trade with Mongolia amounted to 94 billion yuan, which is equivalent to Mongolia's commitment of 370 billion yuan in revenue. For Mongolia, such a promise is very tempting.

Despite the great sincerity shown by Mongolia, there are concerns that China may have to shoulder a greater burden once the gas cooperation project is finalized, given the country's own strength. When the pipeline is completed, Mongolia will likely enjoy huge benefits, and China has worked hard to achieve it.

In fact, China has been keeping its position clear. We welcome sincere cooperation, but if anyone tries to play tricks and seek small profits, China will never cooperate. This pipeline will bring 120 billion yuan of revenue to the three countries every year. Therefore, China has proposed to Russia that China is responsible only for the construction of the internal part of the pipeline, and that Russia and Mongolia are responsible for the construction of the internal part of the pipeline. In addition, China also has pricing power over natural gas, and it should take into account the common interests rather than the monopoly of natural gas.

China actively promotes domestic industrial transformation and upgrading, reduces dependence on foreign energy, and avoids a passive situation. The leading position in the Chinese market will not be easily given up by companies from all over the world. For Mongolia, which is located between China and Russia, China is naturally a "cash cow" that cannot be abandoned. China is willing to do business with them, but it will not be wronged.

Mongolia has expressed its eagerness to show goodwill to China, but the Chinese side remains cautious. It can be seen that China's position in international affairs is constantly rising, and countries are vying to cooperate with China, which is also the result of China's rapid economic development.

However, as a great power, China will not make concessions for the sake of momentary petty interests. China adheres to the principle of win-win cooperation and is committed to building fair and stable international cooperative relations. For Mongolia, the opportunity for cooperation is indeed rare, but more practical actions are needed to prove its sincerity and ability to truly achieve cooperation.

In the future development, the value of large orders of Russian natural gas is 2The 4 trillion yuan has not been finalized for a long time, and Mongolia, which is sandwiched in the middle, has begun to take the initiative to show favor to China, hoping to use Mongolia to lay the Siberian No. 2 natural gas pipeline. Mongolia sees the economic benefits of the project, including tolls and job creation. Mongolia** expressed its willingness to strengthen cooperation with China and promised to double its export quota to China in the future. Despite Mongolia's sincere expressions, China remains cautious and asks Mongolia for more concrete action. Once the Sino-Russian natural gas cooperation project is confirmed, it is expected to bring huge benefits to the three countries. However, China wants to ensure that cooperation is fair and stable, and is not willing to make concessions for the sake of momentary petty interests. China is actively promoting domestic industrial upgrading, reducing its dependence on foreign energy and avoiding a passive situation.

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