On February 19, Mongolia has reached a preliminary agreement with the International Monetary Fund (IMF); the IMF will provide Mongolia US$ 440 million loans. It is noteworthy that China has been deeply involved, and provides Mongolia a US$ 2.2 billion currency swap agreement. In fact, Mongolia is not a friendly country to China; it has always involving the United States and Japan to balance China and Russia, and adopted some unfriendly measures against normal Chinese enterprises, while some of its extremist groups are violent against Chinese. All these have affected its normal investments and trades with China. With the current debt crisis in Mongolia, China should take measures and set-up rules for the two countries' relations, or to adopt "fence strategy" to deal with Mongolia.