Chinese Foreign Minister Wang Yi held a meeting with his Mongolian counterpart, Tsend Munkh-Orgil in Beijing. The meeting on Monday took place against a backdrop of strained relations between the two countries, following the Dalai Lama's visit to Ulan Bator in November. However, Munkh-Orgil reaffirmed Mongolia's commitment to the "One China" policy and promised that the Dalai Lama would not be permitted to visit Mongolia again during his time in office.

Chinese Foreign Minister Wang Yi (R) shakes hands with Mongolian Foreign Minister Tsend Munkh-Orgil in Beijing, capital of China, Feb. 20, 2017. (Xinhua/Cui Xinyu)

Also on the agenda of talks was China's financial aid to Mongolia. The International Monetary Fund announced a 5.5 billion US dollar bailout plan to support the country's economy, which has been hit by a steep slump in coal, copper and other commodity prices over the past five years. China also pledged to provide its own financial support.

"China supports the IMF's financial aid to Mongolia and will help the country overcome its current economic obstacles. China is willing to extend its swap line with the Bank of Mongolia for at least three years. The two countries are also working to boost export levels of Mongolia's coal, agriculture and animal husbandry. China is willing to offer free aid and preferential loans to Mongolia," Wang said.