China imported a record amount of iron ore in 2017 www.mining.com

Hunger for high-quality iron ore from Australia and Brazil pushed Chinese imports of the steelmaking ingredient to a record high in 2017.

Foreign firms, too, gain from Belt & Road www.chinadaily.com.cn

New facts appear to demystify the Belt and Road Initiative led by China, which aims to strengthen nations on and beyond the ancient Silk Road and Maritime Silk Road routes through trade and infrastructure networks across Asia, Africa and Europe.

For long, skeptics believed the B&R Initiative, which was launched in 2013, will ultimately benefit China and its companies more than others. There were even whisper campaigns that development is merely the ostensible goal of the initiative; the perceived truth was that it is China's covert attempt to emerge as a 21st-century hegemon.

Four years down the line, facts and figures clearly indicate even non-Chinese, non-Asian multinational companies are just as well positioned to benefit massively from the initiative.

Many of these MNCs are seeking to tap huge business opportunities spawned by the initiative. Some of them have already teamed up, or are teaming up, with Chinese partners in countries and regions covered by the B&R Initiative, angling for a slice of the gigantic trade and infra-structure cake.

For instance, Munich-based engineering and electronics giant Siemens AG is intensifying collaboration on B&R-related projects in various countries and regions.

According to Cedrik Neike, member of the managing board of Siemens, the company plans to cooperate more with Chinese partners under the framework of the initiative this year.

"With our experience and world-class project management, we have the potential to be bridge builders between Chinese players and international suppliers and customers, and together with our Chinese EPC (engineering, procurement and construction) partners we will focus on paving the road to success in these countries," he said.

"As one of the largest foreign-invested companies in China, Siemens has more than 32,000 employees working in numerous joint ventures and company operations spread across the country, and the Initiative will only help in tightening our relationships."

Siemens is among the earliest foreign companies to partner with Chinese enterprises to explore overseas markets together. It started operations in China some 20 years ago, and its growth gathered momentum in recent years, after the launch of the B&R Initiative, and with the rapid development of Chinese EPC enterprises in the global arena.

By 2016, Siemens had joined forces with more than 100 Chinese EPC players in exploring more than 60 overseas markets. Its partners include China National Petroleum Corp, the country's biggest oil producer, China Petroleum and Chemical Corp, and Power China.

According to Neike, EPC contracts bagged by Chinese firms are worth around $125 billion.

Siemens expects the cumulative potential over the next 10 years will be over $1 trillion.

"We see sweet spots in select countries where we can position Siemens as a high-value provider and partner of China," he said.

Like Siemens, many Western MNCs with leading technologies and a global footprint have vouched support for Chinese companies seeking to go global and adapt to local markets overseas, in fields like power, oil and gas, chemicals, minerals and building materials.

Boston-headquartered General Electric or GE, one of the first MNCs to enter the Chinese market over a century ago, has decided to jointly explore new wind power opportunities in Pakistan by teaming up with Power Construction Corp of China.

This move is part of GE's more than 10 Pakistan power projects with Chinese EPC players in recent years.

John Rice, GE vice-chairman, said the B&R Initiative is a shining example of how GE can benefit from China's opening-up.

"In many cases, we are well equipped in being a great partner participating in the Belt and Road Initiative and we can also benefit from that," Rice said during a previous interview during his trip to China as part of the business delegation accompanying US President Donald Trump on his state visit.

To date, GE has partnered with over 30 Chinese EPC companies in more than 70 markets across Africa, the Middle East, Southeast Asia and Europe. The company and its Chinese partners will further invest in power grids, new energy, oil and gas, in B&R countries and regions.

Honeywell International Inc, the US-based manufacturing and technology conglomerate, has also been immersed for years in supplying automation products and other technologies for infrastructure and energy projects, such as Central Asia-China gas pipeline project.

Shane Tedjarati, president of Honeywell Global High Growth Regions, said the software and connected systems company is well-positioned to support the Belt and Road Initiative through its China growth strategy and portfolio.

Honeywell's high-growth regions consistently drive more than 80 percent of the company's growth. China accounts for the biggest chunk of that, he said, adding the country has been the company's second-largest market since 2013 and currently is the single-largest contributor to its global growth.

Experts believe the initiative creates business and growth opportunities for both Chinese and non-Chinese companies.

Belt and Road countries and regions account for about 30 percent of the global economy, according to the Mercator Institute for China Studies. Projects worth some $900 billion are now either underway or on the drawing board, according to the China Development Bank.

Many Western firms are interested in contributing to the initiative, offering either technology or knowledge of local conditions, said Zhang Jianping, director of international economic cooperation at the National Development and Reform Commission.

Multinationals can also benefit from better connectivity in the long term as emerging Belt and Road markets will be further developed and their improved infrastructure might open up new markets and ultimately drive global economic growth, he said.

Stanley Jia, chief representative at the Beijing office of global law firm Baker McKenzie, was quoted by the South China Morning Post as saying there will be plenty of opportunities for Chinese and multinational companies to work together in the future.

It is still early days for the initiative and hence it may appear as if it is the preserve of Chinese State-owned enterprises, funded by Chinese banks and staffed by Chinese workers. All that will change sooner rather than later, he implied.

According to the law firm, Chinese companies and their partners could together pour some $350 billion into Belt and Road-related projects in more than 60 countries and regions in the next five years.

Ren Hongbin, chairman of China National Machinery Industry Corp, known as Sinomach, said Chinese EPC firms are facing various challenges, including international competition, geopolitical risks, tricky financing, and conflicts of culture.

Lothar Herrmann, CEO of Siemens Greater China, said complexity in terms of geography, culture and religion of B&R countries might be difficult to grasp, while various projects in different fields, including transportation infrastructure, tourism, financial services and clean energy, are just as challenging.

"The complexity and uncertainty in some regions have made it imperative for companies to adapt to the local environment with the highest flexibility," he said. "But focus must remain on adding value to the local customers and local people."

Vietnam to work with Mitsubishi Motors on electric vehicle R&D www.asia.nikkei.com

HANOI -- Vietnam is set to partner with Mitsubishi Motors on research and development of electric vehicles. The country is looking for help nurturing its auto industry, while the Japanese company hopes to gain a slice of the nation's market for environmentally friendly vehicles, one that is expected to grow in the future.

Veterinary joint project to begin in 2019 www.montsame.mn

Ulaanbaatar/MONTSAME/ A joint committee between the Ministry of Food, Agriculture and Light Industry of Mongolia and the Ministry of Food, Agriculture, Forestry and Fisheries of the Republic of Korea held its 7th meeting on January 12 in Ulaanbaatar.

BoM promises favorable environment for financial consumers www.gogo.mn

The Bank of Mongolia (BoM) launched “Consumer protection campaign” last week. The campaign is set to cover the entire financial sector and cooperate with regional department of the BoM, commercial banks, Ministry of Finance, Financial regulatory Commission, Authority for Fair Competition and Consumer Protection, Mongolian Mortgage protection, Mongolian Banking Association, Deposit insurance Corporation, Microfinance Development Fund, Government and non-government organizations.

Housing price index in Ulaanbaatar - Dec, 2017 www.gogo.mn

Following is the public report of the December 2017 results of the “Housing Price Index” (HPI) research conducted independently by TenkhlegZuuch LLC at the request of Mongol Bank.

The research shows that the general index of housing price was 1.013 in December 2017. It shows a growth by 1.3 percent in January 2013. The index increased by 0.22 percent compared to the previous month. The general index increased by 0.34% compared to the same month in previous year. Below are the Price index indicators classified by new and old houses.

The new house price index was at 1.164. This shows a growth by 0.32 percent compared to the previous month. The index increased by 0.75% compared to the same month in previous year.

The old house price index was at 0.912. This shows a decline by 8.80 percent in January 2013. The index dropped by 0.28 percent compared to the previous month, and by 1.16% compared to the same month in previous year.

HPI was calculated by applying Hedonic regression methods and the calculation was based on the information available for 4840 old and new houses supplied for sale at the real estate market of Ulaanbaatar for the particular month.

Research Division, Tenkhleg Zuuch LLC

Foreign Minister requests to support Mongolia to get off EU black list www.montsame.mn

Ulaanbaatar /MONTSAME/ On December 5, 2017, the European Union agreed on a tax blacklist of 17 countries including Mongolia. In connection with the decision, Minister of Foreign Affairs D.Tsogtbaatar sent letters to High Representative of the Union for Foreign Affairs and Security Policy, Vice-President of the Commission Federica Mogherini, Presidency of the EU in the first half of 2018, Bulgarian Deputy Prime Minister and Minister of Foreign Affairs Ekaterina Zaharieva and other 27 Foreign Ministers of the EU member states, requesting to immediately take Mongolia off the EU’s blacklist.

What Davos wants to hear from Trump www.cnn.com

President Trump spent most of his election campaign and first year in office blasting globalization. Now he's decided to attend its biggest annual celebration: the World Economic Forum in Davos.
The Davos crowd will make for a skeptical audience: CEOs, entrepreneurs and international leaders who typically support free trade and multilateral initiatives, and regard many of Trump's policies as backward-looking.

His reported use of coarse language to describe the countries of origin of some U.S. immigrants -- remarks he has since denied making -- won't have endeared him to many delegates either.

The announcement that Trump would become the first serving president since Bill Clinton to attend was already raising eyebrows. "[It's] emblematic of the contradictions of Trumpism," said Tarun Chhabra, fellow at the Project on International Order and Strategy at The Brookings Institution.

The White House said the main reason Trump is going is to "talk about the America First agenda."

"The president's message is very much the same here as it will be there," said press secretary Sarah Sanders.

Nobody knows exactly what Trump will say in Davos. But here's what the Davos audience would like to hear:

1. I won't threaten war with North Korea

Trump's tough, provocative rhetoric towards North Korea is making the world nervous. Ian Bremmer, the president and founder of Eurasia Group, said North Korea is the world's "most obvious risk of a geopolitical accident."

"Elevated tensions combined with less trust/coordination among all actors means that mistakes, when they occur, are more likely to ignite a conflagration," he said.

Trump this week hinted he might be ready to offer dialogue when it's "appropriate."

That's something the international community really wants to hear, especially since talks between South Korea and North Korea resumed ahead of the Winter Olympics in PyeongChang, South Korea, next month.

"If he simply refrains from puerile taunts at Kim Jung Un, and doesn't threaten imminent war, he will be met with relief," said Chhabra.

2. I won't start a trade war with China (or Mexico, or Canada)

Trump's first year in office was not good for global free trade.

He pulled America out of the Trans-Pacific Partnership, a free trade agreement covering 12 countries in Asia and the Americas and began renegotiating the NAFTA agreement.

While he didn't follow through on his promise to label China a currency manipulator, experts are warning things could get nasty in 2018. China's trade surplus with America hit a new record in 2017 as its exports boomed.

Trump's new national security strategy unveiled last month identified China and Russia as U.S. rivals that are "attempting to erode American security and prosperity."

Davos delegates will be hoping Trump will signal he is ready for more cooperation.

"Realistically, they can't expect he would abandon his 'America First' politics, but they might hope he is going to soften it around the edges," said Jeremy Shapiro, director of research at the European Council on Foreign Relations.

And they'll at least want reassurances that Trump still believes in the concept of free trade.

"Something like 'we want a better deal, but we believe in the basic concept of the free trade system and we are not trying to blow up the WTO, and we are not going to unilaterally tear up the agreements,'" Shapiro said.

3. I will rethink the Paris climate accord

Last year, Trump said he would take the U.S. out of the Paris climate agreement negotiated by the Obama administration.

That will make the U.S. the only country in the world not party to the deal. Syria and Nicaragua, the two countries that did not originally join the accord, have since signed up.

World leaders, led by French President Emmanuel Macron, have been urging the U.S., the second biggest polluter after China, to get back into the deal.

Business leaders have also urged Trump to stick with the deal. Microsoft (MSFT), Apple (AAPL), Starbucks (SBUX), Nike (NKE), Goldman Sachs (GS), Chevron (CVX) and ExxonMobil (XOM) were among the big U.S. corporations to back continued U.S. involvement.

Trump hinted this week he might return to the negotiating table, and Davos will be hoping for more signals that could happen.

4. I will stick with the Iran nuclear deal

Senior European diplomats urged Trump this week not to kill off the Iran nuclear deal, brokered by the Obama administration, the U.K., Russia, France, Germany and China in 2015.

Trump promised to get rid of the agreement during his election campaign, calling it "the worst deal ever." So far, he has not delivered on that pledge and the global elite in Davos will want to hear reassurances that he won't.

The agreement obliges Iran to limit its nuclear program in exchange for waiving sanctions that had crippled the country's economy.

5. I won't kick out software engineers

Business leaders and heads of states alike will also hope Trump softens his stance on immigration, especially when it comes to the H-1B visa program for skilled workers.

The Trump administration has called for a review of the program, which provides visas for highly skilled foreigners to work at companies in the U.S.

One Davos delegate will be paying very close attention: Narendra Modi, the first Indian prime minister to attend the gathering in two decades.

India accounts for 70% of all H-1B workers. Tech leaders will also listen carefully to Trump's message on immigration. The sector is a major employer of H-1B visa holders.

6. I will stand up to Russia with America's allies

During the first year of his presidency, Trump lashed out against Germany over its trade policies, caused embarrassment in the U.K. by re-tweeting an extremist politician, and openly criticized NATO countries for not spending enough on defense.

"The international community is going to want to hear that America is the trusted partner that it has been over the past 70 years in the post-World War II system," said Sudha David-Wilp, a senior transatlantic fellow at The German Marshall Fund of the United States in Berlin.

In particular, they will want him to maintain a tough stance towards Russian President Vladimir Putin, especially over the situation in Ukraine.

President Moon to meet Mongolian prime minister on bilateral ties www.yonhapnews.co.kr

SEOUL, Jan. 15 (Yonhap) -- South Korean President Moon Jae-in is set to meet the visiting prime minister of Mongolia on Monday to discuss ways to improve bilateral ties, the presidential office Cheong Wa Dae said.

Speaker seeks support from President and Prime Minister www.montsame.mn

Ulaanbaatar /MONTSAME/ Parliament Speaker M.Enkhbold has sent official letters to the President and the Prime Minister regarding his call for increased consumption of traditional Mongolian dairy products.