Gobi cashmere brand to open another store in Los Angeles www.montsame.mn

Ulaanbaatar /MONTSAME/ A duty-free treatment for certain imports, including cashmere products imported directly from Mongolia into the customs territory of the United States was high on the agenda during talks held within the scope of Mongolian President Kh.Battulga’s recent visit to the US.

US officially labels China a 'currency manipulator' www.bbc.com

The US has officially named China as a "currency manipulator", a statement which will intensify tensions between the world's two largest economies.

The announcement by the US Treasury follows a sharp fall in the value of the Chinese yuan against the dollar.

The drop caught markets off-guard as Beijing usually supports the currency.

Last week, China pledged to retaliate after US President Donald Trump vowed to impose 10% tariffs on $300bn (£246.7bn) of Chinese imports.

On Monday, the yuan passed the seven-per-dollar level for the first time since 2008, prompting Mr Trump to accuse China on Twitter of manipulating its currency.

The US government said Treasury Secretary Steven Mnuchin will now engage with the International Monetary Fund (IMF) "to eliminate the unfair competitive advantage created by China's latest actions".

The move is largely symbolic because the US is already engaged in trade discussions with China and has implemented tariffs on the country's imports.

However, it fulfils a presidential campaign promise by Mr Trump who pledged to name China a currency manipulator on his first day in office.

The decision is likely to increase stock market jitters after sharp falls across the US and Europe on Monday. Wall Street's main stock market indexes recorded their worst trading day for 2019.

Analysis
By Michelle Fleury, New York Business Correspondent

The move doesn't change much. Not legally speaking.

But it is a big deal, accentuating just how fast things have gone south between the world's two largest economies.

When the US Treasury labels a country a currency manipulator - as it has done here with China - the next step would normally be for negotiations to begin between the two countries. In this case, trade negotiations have already been going on for more than a year.

The process also opens the path for America to introduce tariffs. Again, that's already happening as part of Mr Trump's 'America First' approach to trade.

Under the designation, Mr Mnuchin is also expected to work with the IMF to address its concerns. It's not clear yet what that will yield.

Still it's worth remembering that while the decision may not change much technically, it will have significant political ramifications. Nobody thinks this will increase the odds of a compromise by the Chinese side when it comes to trade.

So don't be surprised if the prospect of a currency war further rattles investors' already frayed nerves.

The US defines currency manipulation as when "countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade".

No country has officially been named a currency manipulator by the US since Bill Clinton's administration did so to China in 1994.

In its announcement, the US Treasury said: "China has a long history of facilitating an undervalued currency through protracted, large-scale intervention in the foreign exchange market.

"In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past."

MIL-OSI Russia: In Mongolia at the start of the first ever competition international Army games “Horse marathon” read the address www.foreignaffairs.co.nz of the President of Mongolia www.

Today, during official events dedicated to the opening of the first in the history of the international Army games of the competition, “Horse races”, the main judge of the competition in a solemn ceremony read out a message from the President of Mongolia khaltmagiin of Battulga.

“Distinguished guests, representatives of the war, the participants of the first international marathon. Welcome to Mongolia”, – was said in the beginning.

Later in the address the President expressed his appreciation for the holding of the contest in Mongolia and reported the organizer of the contest – “I Want to Express my enthusiasm that in our country within the international Army games, organized by the Ministry of defence of the Russian Federation, for the first time held a competition “Horse races”.

“History of Mongolia, is the story of a cavalry,” said the chief judge of the competition, continuing to voice the President’s address.

“International horse marathon, first organized in our country and restoring his historical memory and opens a new page in history,” it was said further in the address about the importance of the competition.

In the conclusion of appeals stated: “we Hope that horse races will be a special test, which requires our soldiers training, patience, courage, dexterity and skill, and will be an event contributing to the improvement of professional skills, discipline, organization, knowledge, experience and stamina, strengthening cooperation and understanding. I want to wish you success equestrian marathon “Aravt”, the organizers, participants, observers of this competition. Let under the auspices of the eternal blue heaven bless us all the great flag of the Mongolian army.”

In addition, the President of Mongolia has been a lot said about the history of “Aravt”, honoring the history of the great Empire of Genghis Khan and the emergence of Mongolia. The head of state was voiced by the country’s large-scale competitions in which men tested their strength, agility and skill, defines criteria of masculinity.

The solemn opening ceremony of the contest took place on the territory of the United training center of the Armed Forces of Mongolia, “Tavan Tolgoi”, which will host the international contest of “Horse races” within the international army games – 2019.

In the new competition, “Horse races” held in the framework of the army-2019 on the territory of Mongolia are participating equestrian units from 4 countries Russia, Mongolia, Kazakhstan and Kyrgyzstan.

The contest will run until 8 August 2019, and end with a solemn closing ceremony with the awarding of the winners of the competition.

The Department of information and mass communications

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure will not be perfect.

JICA to implement project on 10,000 programmers www.montsame.mn

Ulaanbaatar /MONTSAME/. Officer in charge of innovation and technology projects of the capital city M.Khaliunbat and Head of the Industrial Development Innovation Agency B.Bat-Erdene held a meeting with representatives led by Chief Representative of Japan International Cooperation Agency (JICA) Tamura Eriko on July 31.

CTCE builds fabulous freeways to friendship www.chinadaily.com.cn

Looking at the newly opened expressway leading to the new airport in Ulaanbaatar, capital of Mongolia, Ukhnaagiin Khurelsukh, the country's prime minister, said: "We are very happy" with the country's first expressway project as "it can play a very good role. The quality is very good and it is of very high standard".

Zhang Hechuan, chairman of China Tiesiju Civil Engineering Group Co Ltd, which built the 32.2-kilometer-long expressway, was pleased to hear that.

The two-way, six-lane expressway, whose construction started on June 6, 2016, has the junction at the new international airport at one end and the Yarmag toll station at the other.

It is designed to withstand driving speeds of up to 80 km per hour, and passes through two counties in Central province and one district in Ulaanbaatar.

Zhang said the expressway is another key project in Mongolia built by CTCE and also a landmark project under the Belt and Road Initiative. The company had built the No 2 Highway and the Mongolian Development Center for Children with Disabilities there.

It is not just a "friendship project" completed and transferred to the Mongolian side by a Chinese enterprise at the 70th anniversary of the establishment of diplomatic ties between the two countries. It is also a symbol of deep friendship and sincere cooperation between China and Mongolia, Zhang said.

The expressway will mark a smooth link between the BRI and Mongolia's Steppe Road Program, which was unveiled in November 2014 to reinvigorate its economy through transport and trade.

The road can help reduce the travel time from Ulaanbaatar to the new airport, and increase the flow of logistics and passengers while promoting the local economy and related industries, Zhang said.

On July 5, Xing Haiming, the Chinese ambassador to Mongolia, joined Zhang and the Mongolian prime minister at a ceremony in Ulaanbaatar to mark the handover of the expressway to the Mongolian side.

Xing said: "The new international airport expressway brings Central province and Ulaanbaatar closer, and will open a new gateway for Mongolia."

In recent years, China-Mongolia relations have improved rapidly through mutual trust, high-level exchanges between leaders of the two countries, pragmatic cooperation and people's exchanges, he said.

The expressway itself is an economic cooperation project, but is also a bridge for the exchanges between the Chinese and Mongolian peoples and their friendship, Xing said. "I believe this expressway will make its duo contribution to the development of Mongolia's social and economic progress."

Since the start, CTCE builders adhered to a higher standard in building the freeway in accordance with the geological conditions of the Mongolian alpine region and Ulaanbaatar.

Sukhbaatar, 40 this year, was once a herdsman in Ulaanbaatar tending his 100-odd sheep at home, before he joined CTCE construction team in 2016 when more than 200 local staff were hired for the project.

"I was really hesitant at first, worrying that I might not live comfortably and cannot get used to the job, and that my work can be hindered due to the language barrier and poor communication," he said.

"But the first day on the project made all my worries disappear," Sukhbaatar said, adding that the few years' work made him feel the warmth of Chinese traditional culture and the "family culture" of CTCE.

Since many Mongolian employees participated in construction work for the first time and had no work experience, the CTCE management team meticulously taught them the work skills and explained to them the technical standards.

Through study, Sukhbaatar passed the project assessment and became a team leader who managed some 20 workers.

"I had a handsome income during the construction work. I grew up to be a team leader, from one who could only move bricks and transport materials," he said, adding that "they not only taught me the work skills, but also helped me in daily life. I love my Chinese colleagues, as we are brothers and sisters".

"China's assistance to Mongolia is sincere and selfless, and we welcome them here.

"Working with CTCE has changed my life, and I believe that with the business skills I learned from them, I can find another job soon. But my biggest wish is to continue working with a Chinese company, and hope to visit China in the future with my family members."

Car rental company Avis to open office in UB www.news.mn

Car rental company Avis has announced the expansion of its Asian network with the opening of Avis Mongolia, through a licensee agreement with Baobab. This move builds on the vast global network and regional footprint of Avis – now present in over 20 Asian markets. The main office will be based in the new international airport in Mongolia’s capital city, Ulaanbaatar.

Chinese heavy machinery manufacturer opens office in Ulaanbaatar www.news.mn

XCMG has officially opened the company’s first Spare Parts Centre in Ulaanbaatar. The announcement is the final piece of XCMG’s supply chain jigsaw in the region and will allow XCMG to provide all-around support and services for customers in Mongolia.

US Becomes Mongolia’s 5th Strategic Partner www.thediplomat.com

Mongolian President Battulga Khaltmaa paid state visit to the United States last week, aiming to bolster the two countries’ political and economic relations into a new strategic partnership. While this is Battulga’s first state visit to the United States, the two sides held a number of high-level diplomatic exchanges preparing the groundwork, including the September 2018 Roadmap for Expanded Economic Partnership, Mongolian National Security Council Secretary Gansukh Amarjargal’s visit to Washington in November 2018, and U.S. National Security Advisor John Bolton’s visit to Ulaanbaatar in June 2019. Each diplomatic engagement forged stronger and closer ties between the two governments.

Thus, on July 31, after the meeting between Battulga and U.S. President Donald J. Trump, the U.S. Department of State released the Declaration on the Strategic Partnership Between the United States and Mongolia. This declaration indicates Mongolia’s successful utilization of the third-neighbor policy and makes the United States the fifth country to ink a strategic partnership with Mongolia.

The Declaration on the Strategic Partnership between the United States and Mongolia is built on mutual understanding and a shared pursuit of global and regional peace and security, protecting human rights, freedom of speech, and national independence and territorial integrity. The declaration acknowledges that U.S.-Mongolia ties “have grown stronger and closer based on common strategic interests, shared democratic values, good governance, principles of sovereignty, and respect for human rights” and “that the United States of America and Mongolia have a mutual interest in cooperating more closely to ensure peace, security, and stability in the region.”

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Following the signing ceremony, National Security Council Secretary Gansukh Amarjargal told The Diplomat that “Mongolia has established a strategic partnership with four other nations: Russia (2006), Japan (2010), China (2014), and India (2015). The U.S. [is] the fifth nation to sign a strategic partnership agreement with Mongolia. This declaration will create innovation, development, and diversified job markets.”

Two aspects of the declaration are critical in answering how the United States and Mongolia will boost economic cooperation through trade, investment, and development. First, the declaration calls for the utilization of the U.S. Overseas Private Investment Corporation (OPIC) to help solve critical development challenges in Mongolia. In addition, the strategic partnership ultimately aims to strengthen Mongolia’s economic security by increasing the flow of foreign direct investment, supporting small and medium enterprises (SMEs), involving state-owned enterprises, and further exploring emerging new markets such as technology, science, and space exploration.

The impetus to pursue a strategic partnership with Mongolia is also heavily supported by policymakers in Washington. As Anthony Kim from the Heritage Foundation wrote in an article published the day before Battulga’s arrival:

Mongolia is a strategic U.S. ally in the Indo-Pacific. Policymakers should recognize Mongolia’s unique potential to anchor a strong U.S. presence in the region. Washington should upgrade the current economic relationship from one based largely on aid to a partnership based on private-sector-driven trade and investment. Washington should build on John Bolton’s recent visit to Mongolia. Further Cabinet-level visits would reinforce the U.S.-Mongolian strategic security relationship.

Moreover, the U.S. Department of Defense’s Indo-Pacific Strategy report included Mongolia as one of the “democracies in Indo-Pacific,” that are “reliable, capable, and natural partners of the United States.” The report but also emphasized the burgeoning security relationship based on Mongolia’s unswerving contribution to U.S.-led operations in Afghanistan, and UN peacekeeping missions in Africa. Mongolia was mentioned 17 times in the report, compared to 15 for New Zealand, 18 for Singapore 18, and 31 for Taiwan. The state visit of the Mongolian delegation has reinforced Mongolia’s status in the Indo-Pacific Strategy.

Mongolia holds an increasingly special place in the U.S. strategy toward Asia, being the first country to embrace the Millennium Challenge Corporation. In addition, Mongolian policymakers are working together with U.S. representatives in Congress such as Ted Yoho (R-Florida) and Dan Sullivan (R-Arkansas) on advancing Mongolia’s economic relations with the United States to a new, strategic level. Part of Mongolia’s economic strategy, the Third-Neighbor Trade Act (S.1188) was re-introduced in Congress and is expected to have a positive outcome in September.

Economic cooperation and economic security were a top priority during Battulga’s trip to the United States, and science, technology, and entrepreneurial opportunities were raised during other official meetings. Battulga’s state visit also explored cooperation opportunities in space-related projects. The president paid a courtesy visit to NASA headquarters in Washington that remembered historical accomplishments, such as Major General Gurragchaa Jugderdemid’s Soviet-led Soyuz 39 mission to space in 1981. Jim Bridenstine, the administrator of NASA, tweeted, “I was honored to host Mongolia’s President Khaltmaagiin Battulga today as our countries work to enhance our strategic partnership. President Battulga shares our excitement for sending humans to Marks & we welcome future discussions on cooperation in space exploration.”

On July 30, the day before his White House visit, Battulga spoke at the Center for Strategic and International Studies’ (CSIS) Global Leaders Forum on the future of U.S.-Mongolia relations. The conference was attended by the Mongolian delegation, including Foreign Minister Tsogtbaatar Damdin and Mongolian Ambassador to the U.S. Otgonbayar Yondon, as well as U.S. Ambassador to Mongolia Michael Klecheski. During the conference, the Mongolian president received several questions about Mongolia’s position toward global issues like the denuclearization of North Korea, relations with China, and poverty reduction. In his response, Battulga said that Mongolia has never considered itself a “small” country. He added that the strength of Mongolia’s contemporary foreign policy is based on three factors: continuing good neighbor relations with Russia and China; gaining a strategic place in the Asia-Pacific by contributing to security and peace dialogues; and being an active member of both global and regional economic groupings, particularly the U.S. Indo-Pacific Strategy.

Erdenebat Tseveendorj, economic and industrial policy advisor to Battulga, told The Diplomat, “The meeting between the two leaders, Battulga Khaltmaa and Donald J. Trump has been in the spirit of the times. The 32 years of diplomatic relations and the newly established strategic partnership between two governments are expected to grow in a very positive direction.”

Bolor Lkhaajav received an M.A. in Asia-Pacific Studies from the University of San Francisco. She is a Nonresident Research Fellow at The Institute of Strategic Studies and currently writing a book on Mongolia’s foreign policy and security apparatus.

Two Oyu Tolgoi supplier-factories open in Manlai soum www.ot.mn

Ulaanbaatar /MONTSAME/ Two factories that will supply concentrate bags and single use coveralls to Oyu Tolgoi opened their doors on August 1 in Manlai soum, creating 64 jobs.

OECD Anti-corruption Network: High level corruption is pervasive in Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ Petty corruption has been gradually declining in Mongolia, but overall, corruption is still widespread and high level corruption is pervasive in Mongolia, a report of the Anti-Corruption Network for Eastern Europe and Central Asia says, warning to take substantial measures to increase public servants’ accountability and ethics. The importance of confirmation of the officials’ tax returns and the absence of the system of whistleblower protection is also emphasized in the report.

On July 30, the Anti-Corruption Network for Eastern Europe and Central Asia (ACN) of the Organisation for Economic Co-operation and Development held a briefing about the report of 4th round of monitoring of Mongolia under the Istanbul Anti-Corruption Action Plan.

Launched in 2003, the Istanbul Action Plan supports anti-corruption reforms in regional countries through country reviews and continuous monitoring of participating countries’ implementation of recommendations to assist in the implementation of the UN Convention against Corruption and other international standards and best practice. Mongolia joined the Istanbul Action Plan in September 2012. The 4th round of monitoring of Mongolia was launched in August 2018. The experts gathered information from representatives of governmental and nongovernmental organizations and bisunesspeople. The report was adopted at the ACN/Istanbul Action Plan Plenary Meeting in Paris on March 21, 2019.

The report covers three main topics: Anti-corruption policy, Prevention of corruption, Enforcement of criminal responsibility for corruption and specifically raises the issue regarding political party financing. It also features 29 recommendations for the government of Mongolia. It was reported that only one of the 19 third round monitoring recommendations made in 2015 was fully implemented. The recommendation regarding public financial control and audit has been fully compliant with, five of the 19 has not been addressed, and the rest have been partially dealt with, the report shows.

The Criminal Code entered into force in 2017 introduced improvements in regulating bribery and illicit enrichment offences. However, a number of international standards have not yet been reflected in the Criminal Code, the report says. In general, it is noted that leniency of the sanctions is giving an opportunity to avoid conviction.

Independent Expert Vitalii Kasko told which drew attention were the short statute of limitations and too broad scope of immunities applied to extensive list of public officials.

ACN Consultant Andrii Kukharuk underlined that Mongolia has ensured the involvement of civil society organisations in the development and implementation of national anti-corruption policy and measures, however, disregarded the policy implementation period and result evaluation. Also, even though it conducts numerous corruption surveys and provides anti-corruption information, the relevant organization does not ensure effective use of the results and include those in its action plan, he said.

The Independent Authority Against Corruption has continued and somewhat stepped up its policy coordination and prevention work, however it lacked independence, resources, and necessary support from state bodies to fully exercise its mandate, the report says.

It also notes that politicization of appointments is still there even with the new Law on Civil Service, suggesting to give emphasis to competitiveness of civil service salaries and ensure transparent and fair remuneration.

The experts commended the launch of e-procurement system, however, cited that the applicability of the public procurement law has not been widened, but instead, further public sector entities have been excluded from the law. The contract value with those selected from open competition has been receded and the Government has not prioritized business integrity measures.

Mr. Vitalii Kasko reported the independence of judges is not ensured and warned that political bodies, especially the president, are involved and have significant discretion in it. The report highlights shortcomings in the procedure of the selection of judges and calls on Mongolia to ensure merit-based appointment to judicial posts. Ensuring both external autonomy of the Prosecutor’s Office and internal independence of prosecutors are the most challenging issues for the Mongolian prosecution service, it says.

The report recommends establishing a separate disciplinary body and consider establishing an independent system of prosecutorial self-governance.

In the conclusion of the briefing, it was underscored that the financing of political parties remains to be poorly regulated, encouraging Mongolia to adopt a comprehensive legal framework on political party financing.