From friendship to friction: the evolution of China’s economic and technical assistance to Mongolia (1949–1985)

Following the establishment of the People’s Republic of China in 1949, Mongolia was among the first socialist states to recognize it, although bilateral relations initially remained strained. A turning point came with Tsedenbal’s 1952 visit to China, after which relations improved and China proposed providing aid. Between 1956 and 1960, China delivered three rounds of economic and technical assistance totalling 460 million rubles, primarily through turnkey projects financed by China and constructed by Chinese firms in Mongolia. However, as Sino-Soviet tensions intensified after 1962, Sino-Mongolian relations cooled, and Chinese aid projects were suspended. In 1973, China transferred unfinished projects to Mongolia for a cost, and Mongolia began repaying the loans in 1985. China’s policy of economic and technical assistance to Mongolia went through four stages, from ‘taking the initiative’ and ‘active implementation’ to ‘acting in line with one’s capacity’ and ‘transfer for a compensation’. This trajectory reflects the interconnected nature of the Sino-Soviet-Mongolian relationship, in which shifts between China and the Soviet Union shaped Mongolia’s position. It also underscores Mongolia’s agency and shows that China’s aid policy was influenced not only by ideology but also by domestic conditions, international dynamics and leadership perceptions.