On September 2, China, Russia and Mongolia signed a legally binding memorandum of understanding (MOU) to build the Power of Siberia 2 natural gas pipeline. The development signifies China’s acceptance of Russia’s proposal to route the pipeline through Mongolia, along with Russia’s agreement to offer China a discount on its natural gas.
Chinese commentators had in recent years complained that having the pipeline go through Mongolia would threaten China’s energy security as the landlocked country might lean to the West and shut down the pipeline at a critical moment. Now they praise this deal as a “win-win” for Beijing and Moscow.
