The 3,200-kilometer border area between the People’s Republic of China (PRC) and Mongolia is more than just the line on the map. Rather, it represents a broad zone of interaction where communities live, work, and build close relationships that extend beyond national boundaries.
As trade and transit continue to grow in the CAREC region, these frontier areas have become more important. Yet, border communities have been facing some issues for a long time – like limited access to services, environmental pressures, and fewer economic opportunities compared to bigger cities.
In response to these challenges, in 2020 the Asian Development Bank approved the $420 million Inner Mongolia Sustainable Cross-Border Development Investment Program. Under the CAREC Program, this program promotes sustainable development as well as regional cooperation between Inner Mongolia and Mongolia, targeting five border-crossing communities.
In Erenhot and Mandula, major investments are helping transform the future of cross-border connectivity. A new smart port with a one-stop inspection system is being established in Erenhot, while a modern logistics park and upgraded transit facilities are under construction in Mandula. Together, these investments will make trade more efficient and strengthen economic links between Mongolia and PRC.
The program is already delivering tangible benefits for local residents. For instance, more than 200 medical staff have been trained, and new equipment has been provided to the International Hospital in Erenhot. As a result, more than 2,500 Mongolian patients have received better treatment since 2023. Environmental improvements are helping reduce sandstorms and create cleaner living conditions for locals.
The proram is creating new opportunities as well. It created over 2,850 jobs and this number will raise rise by another 1,500 when the new facilities are fully running. In addition, 225 government officials, 40% of them women, have strengthened their skills through training programs on regional cooperation, public services, and program management.
Since joining CAREC in 1997, the PRC has played an important role in advancing regional connectivity across Eurasia. This initiative shows that regional integration goes beyond trade. It helps improve people’s lives, create new opportunities, and strengthen local communities.