It quite sad actually to read about Mongolia’s hard stance of no longer welcoming the Dalai Lama considering that historically, Mongolia has deep ancient ties to Tibetan Buddhism and to the history of the Dalai Lamas. In fact, Mongolian rulers had played significant role in establishing the Dalai Lama centuries ago.
However, such approach is hardly surprising taking into account Mongolia’s financial problems which worsen after allowing Dalai Lama’s visit. In reaction to such visit, China postponed diplomatic meetings with Mongolian officials and imposed new commodity shipping fees. Mongolia’s economy, which is currently in recession, is dependent on China, and the countries had been negotiating a possible $4.2 billion loan. Those negotiations were put on hold after the Dalai Lama's visit.
Thus, to many political analysts, the surprising move was actually Mongolia’s clumsy handling of the situation pertaining to the Dalai Lama’s visit whilst trying to convince China for a large loan. It is no secret that China has long pressured countries, including Western ones, to ban visits from the Dalai Lama, as the Chinese leadership consider him to be a dangerous separatist and political trouble maker. It is also not uncommon for China to leverage on its significant economic influence to bend things in line with its views.
Unfortunately, what we are seeing a shining example of the negative consequences of mixing religion with politics. Not only did it resulted in a religious visit being construed negatively, it triggered political reaction which caused more suffering to people and even the rectification actions would still penalise/compromise the religious beliefs of a large number Mongolians.
Considering this issue has developed to this state, it is hoped that with such drastic gesture by Mongolia, the damage is really reversible with China so that it counts and the poor Mongolians would at least have some economical reliefs.