Snowstorm kills 4 in southern Mongolia www.xinhuanet.com

ULAN BATOR, May 12 (Xinhua) -- A heavy snowstorm had swept through southern Mongolian province of Umnugovi since Saturday, killing at least four people, the provincial government said on Sunday evening.

India To Sign Pact With Mongolia To Built Its First Petrochemical Refinery www.energyinfrapost.com

NEW DELHI: India and Mongolia are expected to sign an agreement this week for the construction of Mongolia’s first petrochemical refinery that is expected to cut some of its dependence on Russian fuel. When signed, the project will be the largest being undertaken by the government of India under its Lines of Credit programme, two people familiar with the matter said on Sunday.

The petrochemical refinery -- near Sainshand in southern Dornogovi province -- is to be built at an approximate cost of $1.25 billion utilising the $1 billion line of credit announced during Prime Minister Narendra Modi’s visit to Ulan Bator in 2015. It is expected to be completed by 2022.

“As of now the negotiations are on, many issues are resolved and others narrowed down," said one of the people cited above. The decision to use the line of credit offered by India to set up the petrochemical plant was taken by the Mongolian government, a second person cited above said. On India’s part, “this is the largest project being undertaken by the government of India under its line of credit scheme," the second person said.

The ground-breaking ceremony for the petrochemical plant took place in June 2018 during the visit of home minister Rajnath Singh to Mongolia.

“Mongolia has its own oil fields producing enough crude for its requirements. However, almost all of its crude oil is exported and all of its finished petrochemical products are imported. The establishment of this refinery will be a significant step towards reduction of import dependence and will ensure energy security for the country," the second person said.

When built up, the capacity of the refinery will be 1.5 mmtpa (million metric tons per annum), with diesel and gasoline as the primary products and LPG (liquefied petroleum gas), fuel oil and jet fuel being produced as secondary products.

According to news reports, products from the Mongolian refinery could be sold to China. Mongolia’s big southern neighbour produces around 3.8 million barrels per day (bpd) of crude, and imports more than 9 million bpd, according to official government data. Mongolia produced 7.6 million barrels of oil in 2017, about 21,000 bpd, amounting to 6% of its total export earnings, a Reuters report said.

Besides the petrochemical complex, India will also be taking up work for the construction of 27 kilometres of railway line, 17.5 kilometres of road and 19 kilometres of power transmission line to connect the refinery to existing networks. These are to be completed by September 2019, the second person cited above said.

Ties between India and Mongolia date back centuries with Buddhism seen as a major binding factor between the two countries. In more recent times, the two countries have set up mechanisms like the India-Mongolia Joint Working Group for Defence and the “India-Mongolia Joint Committee on Cooperation (IMJCC)" chaired at ministerial level besides others to cement cooperation.

“For Mongolians, India is one of counter-weights to their neighbours (Russia and China), a “spiritual neighbour," a declared third neighbour and strategic partner and centre for pilgrimage," says a background note on bilateral ties.

New Delhi’s attempts to boost cooperation with Mongolia come against the backdrop of China making inroads into South Asia--Sri Lanka and Nepal besides Myanmar--considered India’s periphery. In recent years, New Delhi has increased interaction with countries like South Korea, Japan and Vietnam--all countries seen as on the periphery of China. Analysts say India’s interaction with Mongolia gives New Delhi much needed diplomatic and strategic leverage vis a vis the big countries in Mongolia’s neighbourhood.

Mongolia aims to raise annual coal exports to 40 million tons www.news.mn

In the first four months of 2019, Mongolia’s coal exports increased by 11.7 percent year-on-year. According to the Mongolian Customs General Administration (MCGA), nearly 11.4 million tons of coal were exported to China during the period, which was worth USD 961 million, posting a year-on-year rise to 21.6 percent.

French companies express interest to invest in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ Minister of Foreign Affairs D.Tsogtbaatar met with Damien Regnard, French Senator representing French citizens living abroad and thoroughly discussed Mongolia-France relations and cooperation along with the further opportunities.

Livestock survival at 96.8 percent www.montsame.mn

Ulaanbaatar /MONTSAME/. The Ministry of Food, Agriculture and Light Industry has reported that no less than 20 million offspring are expected to be delivered by the 29.7 million dams counted at the start of the year.

Asian economies to take over ‘7% Growth Club’ in 2020s, but China is not on the list www.rt.com

Asian countries are expected to be the main drivers of global growth through the next decade, with growth rates at around 7 percent. China, however, will be absent from the club, according to Standard Chartered predictions.
Five of the seven rapidly growing economies will be in Asia, the bank’s analysts, Global Chief Economist David Mann and India-based head of thematic research Madhur Jha have concluded, according to Bloomberg, citing their research. The list includes India, Bangladesh, Vietnam, Myanmar, and the Philippines, while the two remaining countries in the club are in Africa – Ethiopia and Cote d’Ivoire.

AmCham May Monthly Meeting held www.montsame.mn

Ulaanbaatar /MONTSAME/ The American Chamber of Commerce in Mongolia held its May Monthly Meeting hosting a panel discussion with International Finance Corporation, International Monetary Fund, and World Bank Country Representatives.

Victory Day Parade in Mongolia www.news.mn

Victory Day (9 May) is celebrated in Russia with the annual military parade marking the end of the Great Patriotic War as World War II is known. This year, a similar parade is being held in Ulaanbaatar. On this occasion, the Mongolian Ministry of Defence has organized military parade to mark the 80th anniversary of the victory of the Battle of the Khalkha River, in which Mongolian and Russian troops fought together to defeat the Imperial Japanese incursion into eastern Mongolia. Entitled ‘Warriors Will Be Remembered Forever’, the parade took place between the Ministry of Defence and Georgy Zhukov Square, which is named after the Soviet military commander, who participated in the action. During the parade, some roads were closed between 09.00 a.m. to 11.00 a.m.

Mongolian truckers strike at Chinese border www.news.mn

Mongolian truck companies engaged in coal transport from the Tavan Tolgoi coal mine to the Gashuunsukhait border crossing went on strike on 6 May, demanding an increase in transport services fees.

Trade war: US raises tariffs on $200bn of Chinese goods www.bbc.com

The US has more than doubled tariffs on $200bn (£153.7bn) worth of Chinese products, in a sharp escalation of the countries' damaging trade war.

Tariffs on affected Chinese goods have risen to 25% from 10%, and Beijing has vowed to retaliate.

China said it "deeply regrets" the move and will have to take "necessary counter-measures."

The move comes as high-level officials from both sides are attempting to salvage a trade deal in Washington.

Only recently, the US and China appeared to be close to ending months of hostilities.

China's Commerce Ministry confirmed the latest US tariff hike on its website.

"It is hoped that the US and the Chinese sides will work together ... to resolve existing problems through cooperation and consultation," it said in a statement.

Chinese stock markets were little changed after the deadline passed, with the Hang Seng index trading up 0.6% and the Shanghai Composite 1.5% higher.

The market took a beating earlier this week after US President Donald Trump flagged the tariff hike on Sunday.

The 10% duties on $200bn worth of Chinese products - including fish, handbags, clothing and footwear - were due to rise at the start of the year.

That was delayed as negotiations advanced, but Mr Trump is now saying talks are progressing "too slowly".

Trade war escalation
The US-China trade war has weighed on the global economy over the past year and created uncertainty for businesses and consumers.

The situation could become worse still, as Mr Trump has also warned he could "shortly" introduce 25% duties on $325bn of Chinese goods.

Trade talks between Chinese Vice-Premier Liu He and US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin continued nonetheless on Thursday.

A White House spokesman said US officials had agreed with the vice-premier to resume talks on Friday morning, according to media reports.

Even though Mr Trump has downplayed the impact of tariffs on the US economy, the rise will deal a blow to some American companies and consumers as firms may pass on some of the cost, analysts said.

Deborah Elms, executive director at the Asian Trade Centre, said: "It's going to be a big shock to the economy.

"Those are all US companies who are suddenly facing a 25% increase in cost, and then you have to remember that the Chinese are going to retaliate."

Mr Willems said there had been difficult periods in trade negotiations previously and that "we've always managed to get things back on track".

"Even if the tariffs do go in place, there is a lot to gain from a deal and hopefully the sides will continue engaging" he said.

The US and China have been negotiating since agreeing on a truce in December.

Even though there had been growing optimism about progress in trade talks recently, sticking points have persisted throughout.

These have included issues around intellectual property protection, how fast to roll back tariffs and how to enforce a deal.

But analysts say the Chinese are still willing to negotiate to retain the moral high ground and because they recognize the importance of solving the trade war.

"A trade war will be bad for China, both the real economy and the financial markets. It will also be bad for the world economy," said Gary Hufbauer of the Peterson Institute for International Economics.

"Better for China to play the role of conciliatory statesman than angry retaliator."

Why are the US and China at odds?
China has been a frequent target of Donald Trump's anger, with the US president criticising trade imbalances between the two countries and Chinese intellectual property rules he says hobble US companies.

Some in China see the trade war as part of the US's attempt to curb its rise, with Western governments increasingly nervous about China's growing influence in the world.

What exactly sparked the US president's latest actions, which apparently took China by surprise, is unclear.

Ahead of the discussions, Mr Trump told a rally China had "broke the deal" and would pay for it.

Both sides have already imposed tariffs on billions of dollars worth of one another's goods

Last year, the US slapped duties on $250bn worth of Chinese goods and China levelled duties on $110bn of US products.

The International Monetary Fund (IMF) said the row poses a "threat to the global economy".

"As we have said before, everybody loses in a protracted trade conflict," the body which aims to ensure global financial stability said in a statement, calling for a "speedy resolution".