The Government of Mongolia approved the master plan for the Economic Cooperation Zone during its regular session on October 1, 2025. The decision marks a significant step toward deepening economic ties with China and advancing regional development goals. The Economic Cooperation Zone aims to strengthen trade, investment, and logistics between Zamyn-Uud in Mongolia and Erenhot in China.
The master plan was endorsed under the intergovernmental agreement between Mongolia and China. This agreement focuses on establishing the Economic Cooperation Zone as a hub for cross-border economic collaboration. Officials emphasized that the plan reflects both nations’ long-term commitment to boosting bilateral economic activity and enhancing strategic connectivity.
To ensure effective implementation, Deputy Prime Minister Amarsaikhan Sainbuyan and Foreign Minister Battsetseg Batmunkh received clear responsibilities. They will lead coordination efforts and oversee strategic measures. Cabinet members were also instructed to support development within their respective sectors, ensuring alignment with national laws and regulations.
The Economic Cooperation Zone occupies a key position on the Mongolian-Chinese border. Zamyn-Uud is Mongolia’s busiest border crossing, handling most of the country’s trade with China. Erenhot serves as a critical gateway for goods moving between East Asia and Europe. By integrating these hubs, both governments aim to reduce logistical bottlenecks and encourage investment.
Officials highlighted that the master plan covers infrastructure, customs procedures, and investment frameworks. It outlines steps to enhance transport links, modernize trade facilities, and create favorable conditions for businesses. The plan also includes measures to improve energy supply, digital infrastructure, and workforce training.
Economists note that this development could stimulate regional economic growth. Improved connectivity will likely attract foreign investment, support local industries, and boost employment. The Economic Cooperation Zone could also position Mongolia as a vital transit corridor between China and other markets.
Looking ahead, both governments plan to establish working groups to monitor progress and address challenges. Officials will also engage private sector partners to accelerate development. Officials plan to implement the project in several stages, focusing on infrastructure, regulatory reforms, and joint investments.
In conclusion, the approval of the Economic Cooperation Zone master plan represents a milestone for Mongolia-China relations. It reflects a shared vision for economic integration, trade expansion, and sustainable regional growth. This initiative could reshape the economic landscape of the border region and strengthen Mongolia’s strategic role in international trade.
