Memo #11
By Mendee Jargalsaikhan
The outcome of a debate over railway track dimensions, whether to use broad gauge to Russia, or narrow gauge to China, could determine the direction of Mongolian foreign policy. On one hand, the debate indicates the strength of Mongolia’s democracy. On the other hand, it is a clear example of a geo-economic contest where the standards of a former hegemonic power (Russia) are challenged by an emerging major power (China).
On June 24, 2010, the Parliament of Mongolia decided to use broad gauge to extend its domestic railway. It will run from east to west, and will be linked with the Trans-Siberian Railway. With this new railway, Mongolia could reach more countries with its exports and develop domestic infrastructure.
The Trans-Mongolian Railway was built with Soviet assistance in the 1950s. It is a primary route between Asia and Europe, and is the closest connection between Russia and China. Since Mongolia’s democratization in 1990, this railroad facilitated trade between Mongolia and China, allowed Russia to export energy to China, and allowed China to export goods to Europe.
Yet, Chinese interests in Mongolia’s mining industry could well result in a hybrid railway system for Mongolia. China’s skyrocketing demand for natural resources cannot be ignored. Many of Mongolia’s natural resources lie within 200-km of China’s border. The Chinese government and mining companies in Mongolia are naturally tempted to connect the mining sites to China’s railroad network via narrow gauge. But politicians and the public fear Chinese economic takeover.
China is willing to invest in a second trans-Siberian line, using narrow gauge. In June 2010, Chinese Premier Wen Jiabao agreed to use a $300 million USD loan to purchase engines and develop infrastructure in Zamiin Uud, a border town where broad and narrow gauges meet. The June 24, 2010 parliamentary decision to build over 1000-km of broad gauge railroad in Gobi upsets the Chinese government. Of crucial interest, the Chinese government is likely to seek involvement in this railroad project as well by contributing money and labour. But, the Mongolian government and the public will not easily accept this. Like railroad extension issues, many other economic development projects in Mongolia have geo-economical implications. A winner has not been named.
About the Author:
Mendee Jargalsaikhan is a PhD student in the Department of Political Science at the University of British Columbia, and an Institute of Asian Research Fellow for 2013-2014. You can visit his personal blog on Mongolia at http://blogs.ubc.ca/mongolia/.
Links:
- Map: Main Railroad Links between Northeast Asia and Europe, Economic Research Institute for Northeast Asia, 2001
- Mongolia Drifts Away From Russia Toward China, China Brief, Vol. 5, No. 10
- Mongolia Coal Railway Will Link with Russia, The UB Post, July 2010
- Russia to build railroads, develop mineral deposits in Mongolia, Russia Beyond The Headlines, May 2009
- Railroad Gets Policy (Төмөр зам бодлоготой боллоо), News Economy, June 2010