|“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ||Mongolian Business Database||London UK|
|SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA||The Center for American and International Law (CAILAW)||Plano Texas June 17-18 2019|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
The Mongolian government has adopted a national program to ensure the supply of safe and healthy food products to the population.
As part of the government’s goal to become a food-exporting country, the national program “Healthy Food, Healthy Mongolia” aims to provide safe and healthy food to its population by promoting domestic agricultural and livestock production.
Over the next four years from 2019 to 2023, it is estimated that a total of MNT 148 billion or $56.3 million will be spent on implementing this program.
Prime Minister Khurelsukh Ukhnaa has reportedly ordered the Minister of Mining and Heavy Industry Sumiyabazar Dolgorusren, Minister of Finance Khurelbaatar Chimed and the authorities of Erdenes Mongol LLC to wrap up the dividends distribution of Erdenes Tavan Tolgoi JSC (ETT) within the first quarter of this year.
14.75 percent of the ETT stakes were distributed to all citizens at the Parliamentary resolution of April 11, 2012. Each citizen was granted 1072 shares of ETT, which were valued at MNT 933 per share respectively to fulfill an electoral pledge of disbursing MNT 1.5 million to the public; however, the company has been running on a deficit due to commodities market bust until 2017. ETT managed to settle most of its debt in 2017, which allowed the company to allocate dividends for the first time this year from the 2018 profits.
Mr.Khurelsukh remarked, “Mongolians should benefit from the minerals revenue. The first step is to distribute the dividends of Erdenes Tavan Tolgoi JSC. It is well-advised to administer the dividends within the first quarter of this year. The distribution must be properly organized within the legal frames. Let us congratulate the authorities of Erdenes Taval Tolgoi JSC. It is monumental that the debt-ridden company has stabilized its operations, increasing its net profit to MNT 720 billion. Now the profit has to be rendered to the public. I perceive that we should focus on allotting minerals revenue to our citizens.
This is not a cash incentive, but the Government’s obligation to provide the profits earned from natural resources in our country. This will have its merits on Mongolians’ livelihood. It is important that we install the practice of distributing dividends in the first quarter of every year.”
ETT has a total of 15 billion units of outstanding shares; thus, the earnings per share stands at MNT 48. If the board decides to distribute the entire net profits as dividends, Mongolian citizens will be granted a total of MNT 51,456.
Ulaanbaatar /MONTSAME/ ‘MIK HFC’ LLC, a wholly-owned subsidiary of MSE listed ‘MIK HOLDING’ JSC issued bond worth USD 250.0 million at international financial market successfully. The bond’s annual yield is 9.75% with 3 years duration.
The company has a credit rating of ‘B’ from international rating agencies, which is the same level as credit rating of Mongolia as a country. It has become the first MSE-listed company to issue bond at an international market.
Source: Mongolian Stock Exchange
At a press conference today (January 31st), the Ministry of Mining and Light Industry gave a report on its performance and productivity over the past year. In 2018, the Ministry contributed a total of MNT 2 trillion and 51.5 billion in tax revenue to the State Budget, which was an increase of 28.6% on the previous year.
Of this tax revenue, MNT 80 billion came from gold, MNT 910.6 billion from coal, MNT 76.9 billion from zinc, MNT 871.9 billion from copper, MNT 17.1 billion from iron and MNT 16.3 billion from fluorspar.
Hong Kong (CNN Business)Huawei's rise as a global tech company is under threat as an increasing number of governments express concern that its technology could be used by Chinese spies.
But the US-led campaign against the Chinese company may do little more than act as a brake on growth, given the dominant position Huawei has already built in fifth generation (5G) wireless technology. It has loyal customers in emerging markets and parts of Europe, and expects to become the world's top smartphone seller by next year.
"This campaign will only slow Huawei's business growth in some countries in European and Asia Pacific markets," said Charlie Dai, an analyst with research firm Forrester based in Beijing. "But I don't think it's going to retreat from any market at all in the foreseeable future."
Huawei's global dominance has raised alarm bells in the United States, which has accused the company of selling products that the Chinese government could use for spying.
The latest move against the company came on Monday, when the US Justice Department filed criminal charges that accuse Huawei of stealing trade secrets, obstruction of justice, bank fraud and evading US sanctions on Iran. Huawei denies the charges.
"Suspicion of Huawei runs deep and there is a bipartisan, whole of government campaign in Washington to take down this company, not just in the United States, but around the world," said Samm Sacks, a cybersecurity policy and China digital economy fellow at the New America think tank.
The assault on Huawei's business reflects the increasingly bitter rivalry between Beijing and Washington over who will control the technologies of the future. There is particular concern about the security of 5G because it will be used to carry vast amounts of data, connecting robots, autonomous vehicles and other sensitive devices.
If the US government decides to escalate the fight still further by preventing Huawei buying US-made parts, as it did with another Chinese tech company ZTE (ZTCOF) last year, it could inflict substantial damage.
"Huawei is less dependent on US suppliers than ZTE, but without access to US technologies, even it will not survive long," Dan Wang, an analyst at research firm Gavekal wrote in a note to clients Tuesday.
For now, though, the Chinese company remains in a strong position to lead the rollout of 5G networks. Huawei says it has signed 30 contracts for 5G, and is working with more than 50 wireless carriers on commercial tests. It is also one of the top owners of 5G patents.
Huawei has spent decades building a strong presence in scores of markets around the world, helped by reliable hardware and competitive pricing. It is the world's No. 1 telecommunications equipment maker, despite being effectively shut out of the US market, and last year overtook Apple (AAPL) as the second biggest supplier of smartphones. It expects to overtake Samsung by 2020.
The company denies that its products are a risk to national security. It also maintains that it is a privately owned company with no ties to the Chinese government. Its international reputation, however, is taking a beating.
Huawei's products include smartphones, laptops, tablets, networking equipment, software and microchips.
Huawei's products include smartphones, laptops, tablets, networking equipment, software and microchips.
Huawei prepares for tougher times
Polish authorities detained a Huawei executive this month on allegations of spying for the Chinese government. The company fired the employee shortly after the arrest, saying his actions had brought Huawei into "disrepute."
In December, Canada arrested Huawei chief financial officer Meng Wanzhou at the request of US prosecutors. The United States is seeking her extradition on allegations she helped the company dodge US sanctions on Iran. Meng, the daughter of Huawei founder Ren Zhengfei, denies any wrongdoing.
In recent months, Australia and New Zealand have restricted Huawei from providing equipment for 5G networks. Germany and Canada are considering similar measures. Top global mobile carrier Vodafone (VOD) is pausing the deployment of Huawei equipment in core networks in Europe while it speaks with authorities and the company.
In the United Kingdom, Huawei is already monitored by a government oversight panel that warned last summer of new risks. The company says it's working to address them. But the pressure has gone beyond the telecoms industry, with organizations such as Oxford University saying they will stop accepting money from Huawei. Prominent American universities are also distancing themselves from the company's funding and equipment.
Huawei's leaders accept that the environment is becoming more hostile.
"In the next few years, the overall situation will not be as optimistic as we imagined. We must prepare for hardships," Ren said in November. His comments were posted on a company website this month.
Huawei is unlikely to repeat the breakneck growth it experienced over the last 30 years, and will have to "give up some mediocre employees and lower labor costs," Ren added.
Following the wave of negative headlines, the company is stepping up its PR campaign. Ren, who rarely speaks to the media, gave interviews to two separate groups of reporters in recent weeks.
He said he expects Huawei to bring in $125 billion in revenue this year, an increase of roughly 15% from 2018.
"If we are not allowed to sell our products in certain markets, we would rather scale down a bit," Ren said. "As long as we can feed our employees, I believe there will always be a future for Huawei."
Emerging markets and loyal customers
Huawei reported revenue growth of 16% for 2017. Its major western rivals, Finland's Nokia (NOK) and Sweden's Ericsson (ERIC), both suffered declines in revenue for the same year.
The Chinese company still does brisk business in many emerging markets, which are unlikely to abandon its equipment.
Perspectives Tensie Whelan
Revenue from Europe, the Middle East and Africa grew by about 5% in 2017 to 164 billion yuan ($25 billion). Growth in the Asia-Pacific region was stronger, with revenue up more than 10%.
Analysts predict customers in those regions will stick with Huawei because of its highly competitive prices and out of a sense of loyalty.
The rollout of 5G wireless networks will be expensive because they require far more base stations than previous generations, according to Kenny Liew, a telecommunications analyst at research firm Fitch Solutions.
Mobile operators "will be keen to slash costs wherever possible, and one way to do so is to opt for cheaper but proven Chinese equipment," he said.
Wireless carriers in India, which have fought a brutal price war in recent years, are likely to favor Huawei as a cheaper option in light of the financial pressures in the industry, Liew added.
And Huawei's early commitment to countries such as Nigeria and South Africa has earned it loyalty.
"There are countries in sub-Saharan Africa where Huawei ... took a risk to invest when other vendors were wary," Liew said.
Huawei could also benefit from the opening of China's market to foreign players such as British carrier BT (BT), which last week became the first foreign telecoms group to obtain a license to sell directly to customers nationwide.
Huawei's smartphone sales soared 30% last year. It plans to overtake Samsung by 2020
Huawei's smartphone sales soared 30% last year. It plans to overtake Samsung by 2020
"This move is definitely helpful for Huawei," said Dai, the Forrester analyst. BT may need Huawei's help to better serve the local market, and a closer business relationship could help Huawei outside China.
The decision from Beijing came just weeks after BT said it would not buy Huawei equipment for the core of its 5G network and was stripping Huawei equipment from the heart of its 4G network. BT said it would continue to buy the Chinese company's products for other parts of its networks.
Beyond telecoms equipment, Huawei's smartphone business is thriving. The company sold more than 200 million devices in 2018, up about 30% from the previous year. The spike in sales helped revenue from Huawei's consumer business rise to $52 billion — an increase of more than 40%.
Political considerations could help Huawei, too.
Nations that have benefited from Chinese investment will be reluctant to impose bans on Huawei equipment because of potential geopolitical repercussions, according to Liew.
Poland and the Czech Republic are already trying to walk a diplomatic tightrope, balancing security ties with the United States with their need for Chinese investment.
Poland is reportedly trying to smooth over tensions with Beiing after arresting the Huawei executive. Poland is China's biggest trading partner in the region, according to the World Bank.
Late last year, the Czech Republic's intelligence agencies issued a public warning about using products from Huawei and its smaller rival ZTE (ZTCOF). The Czech prime minister later had to deny a report that he had told Chinese diplomats the warning didn't represent the Czech government's position.
Like Huawei, ZTE denies that its products pose any national security risks.
Chinese officials are also lashing out over the increasing pressure Huawei is facing in Western Europe.
After Vodafone's announcement Friday, Chinese Ambassador to the European Union Zhang Ming blasted the "slander" and "discrimination" that he said Huawei and other Chinese companies are facing in Europe.
Zhang warned that any attempts to restrict the use of Chinese technology in European 5G projects would risk "serious consequences" for global economic and scientific cooperation, according to an interview published Sunday by the Financial Times.
Under the initiatives of the President Battulga Khaltmaa, the first-ever general hearing on air pollution reduction measures was held yesterday, during which the Deputy General Auditor Oyunbileg Sanjaadorj informs that a list of authorities responsible for misuse of air pollution budget has been submitted to the Prime Minister and related officials, and related cases on six private entities have been sent to the General Prosecutor.
At the meeting, MP Eldev-Ochir Lkhagvaa, who chaired the hearing, did not allow the President or public representatives for inquiries when approving the procedures, which led to criticisms that the hearing turned into a regular meeting of a standing committee.
The purpose of the hearing was to discuss the spendings of air pollution reduction activities and decide on firm solutions to tackle the issue. For instance, the President formed a research team to study the most efficient options to tackle air pollution in Ulaanbaatar last year. The team concluded that the best solution was to accommodate the 200,000 households living in ger districts to the currently available apartments for 110,000 households. Accordingly, the President has issued a request to ratify a housing policy that will allow no-interest loans for ger district households.
As the initiator, the MPs allowed the President to address the hearing once, in which he remarked, “We all know the current situation of air pollution. We have to decide on solutions here. Rural development is one of the solutions to migration-driven air pollution. Not smogless stoves. We need firm actions.”
Owing to the fact that both the President and public representations were silenced, the hearing continued with presentations on air pollution reduction actions. Ms. Oyunbileg criticized, “The air pollution reduction actions since 1995 were non-correlated. Both foreign and national projects failed to show notable results. The distribution of enhanced stoves was inefficient. The stoves failed to perform as planned because of improper use. Results of discounted insulation remain vague due to the lack of studies on results. Same goes to the annulment of night-time electricity tariff. A research was conducted on air pollution reduction, but the results were not evaluated and the research was never used on any projects.”
Construction of the Nord Stream 2 pipeline’s branches will be finished by the end of this year, according to the project’s chief financial director Paul Corcoran.
“The first line [of the Nord Stream 2] will be ready in November, the second in December,” he said at the European Gas Conference on Tuesday.
The $11 billion Nord Stream 2 gas pipeline project is set to run from Russia to Germany under the Baltic Sea. It is expected to double the existing pipeline’s capacity of 55 billion cubic meters annually.
Nord Stream 2 is projected to provide transit for 70 percent of Russian gas sales to the EU. The project, led by a subsidiary of Russian energy giant Gazprom, is being implemented in partnership with German energy firms Wintershall and Uniper, French multinational Engie, British-Dutch oil and gas giant Royal Dutch Shell, as well as Austrian energy company OMV.
EU officials, including European Council President Donald Tusk, previously expressed concerns that the completion of the Nord Stream 2 project would lead to Ukraine missing out on €2.5 billion in annual transit fees which Kiev currently receives.
According to the Russian President Vladimir Putin, Nord Stream 2 is a “purely economic project” and its completion does not mean the end of gas transit through Ukraine.
Construction of the Nord Stream 2 pipeline project has been approved by Germany, Finland, and Sweden. Denmark is the only country which hasn’t authorized the project so far. Last year, Nord Stream 2 AG said the consortium could avoid the Nordic state’s territorial waters if it didn’t get permission.
The head of Gazprom, Alexey Miller, said earlier that the implementation of the construction schedule for Nord Stream 2 makes it possible to talk about a possible start of gas supplies through the pipeline from January 1, 2020.
Chinese factory activity contracted for a second straight month in January, the official Purchasing Managers Index (PMI) showed.
The index ticked up to 49.5, but remained below the 50-point level that separates growth from contraction.
China reported its weakest economic expansion in 28 years in 2018, and growth is expected to slow further.
Already, a number of multinationals have said sluggish growth in China has affected their bottom line.
The manufacturing data was up slightly from the 49.4 level recorded in December.
Marcel Thieliant, economist at Capital Economics, said while the PMI didn't weaken any further in January, "it still suggests that the economy lost momentum at the start of the year".
Other data, such as consumer sentiment and retail sales figures, also point to weakening demand in the world's second largest economy.
Several international companies have warned on China's slowdown, including Apple.
The tech giant blamed a 5% fall in revenues partly on China.
Shares of industrial equipment giant Caterpillar took a beating earlier this week, after the company reported its sales slipped 4%, largely due to slow sales in China.
Chipmaker Nvidia also reported softer sales due to a sluggish Chinese market.
3M, which makes products from adhesive tapes to air filters, also said weak customer demand in China affected its bottom line.
China has been attempting to reform its economy to rely more on domestic consumption instead of exports and investment to fuel growth.
The US-China trade war is also creating economic uncertainty.
The latest figures come as officials from both sides meet in Washington to try ease trade tensions.
If the two sides cannot reach an agreement by 1 March, the US has said it will increase the tariff rate from 10% to 25% on Chinese goods worth an estimated $200bn (£154.4bn).
Ulaanbaatar/MONTSAME/ At the Cabinet meeting on January 30, G.Zandanshatar, Head of the Cabinet Secretariat of the Government, introduced a project ‘Development of eco-friendly public transportation with unified smart system’.
Within the project, the Cabinet backed to introduce electric buses: 1200 for public transport service and 250 for child transportation. In connection, it is planned to establish unified control center with smart system, four international standard bus depots and modernize three bus depots of ‘Passenger transport service’ public-owned company.
The project worth MNT854 billion will be implemented under concession. The use of electric buses in public transportation service of the city will decrease greenhouse gas, carbon monoxide, nitrogen dioxide, sulfuric gas and dusts being produced by 1046 buses and improve air quality in the city.
ULAANBAATAR (Reuters) - Mongolia’s parliamentary speaker, Enkhbold Myegombo, has been ousted following weeks of public protests against him over accusations he was involved in the corrupt sale of government positions.
Tens of thousands of people took to the streets in late December to protest against Enkhbold and the two main political parties, the Mongolian People’s Party and the Democratic Party.
Public unrest has simmered throughout January, with a cross-party group of legislators boycotting parliament. Some protesters began hunger strikes on Ulaanbaatar’s central Sukhbaatar Square on Jan. 10.
The role of foreign investment in resource-rich Mongolia’s development has also come under scrutiny, with many nationalist politicians complaining that strategic assets have been sold off to foreign firms on the cheap.
Enkhbold denied accusations of corruption and declined to resign, but parliament voted in favour of forcing his dismissal late on Tuesday in a procedure initiated by President Khaltmaa Battulga, who defeated Enkhbold in a 2017 election.
“I was not playing tricks to save my position, I believed this problem should be solved legally,” Enkhbold said, complaining that the dismissal procedure undermined parliamentary democracy.
He could not be reached for comment on Wednesday.
Audio recordings released by a whistleblower in 2016 were believed to implicate a number of politicians in a scheme aimed at raising 60 billion tugrik ($23 million) in campaign funds for parliamentary elections that year, which were won by Enkhbold’s Mongolian People’s Party.
Five members of parliament have led efforts against Enkhbold and the two parties, and they announced on Monday they had formed a group called “Wealth Owner Mongolia” that would fight against corruption and nationalise mines of “strategic” importance.
Mongolia’s biggest foreign-invested project, the Oyu Tolgoi copper-gold mine run by Anglo-Australian giant Rio Tinto, is also at the centre of a corruption investigation involving a former finance minister who signed the original 2009 investment deal.
Mongolia is working with overseas investigators to look into suspected corruption at the mine, the anti-graft agency said on Tuesday, after the re-arrest of the minister.
(This version of the story corrects date of whistleblower activity in paragraph 8 to 2016, not “last year”)
Reporting by Munkhchimeg Davaasharav; Editing by David Stanway and Robert Birsel