Chinese companies have started construction on a highway from Mongolia's border city of Zamiin-Uud to the East Gobi provincial capital of Sainshand to help boost trade between China and Mongolia.

After the 124-km highway is completed, the entire 660-km highway from Mongolia's capital of Ulan Bator to China's border city of Ereen Hot will be open, Chinese Ambassador Wang Xiaolong said Monday at a ground-breaking ceremony in Aamyn Uud.

China is willing to work with Mongolia to help develop the country's infrastructure, Wang said.

Amarjargal Gansukh, the Mongolian transportation minister, said that his government would support Chinese companies for the construction of the road that will connect China, Mongolia and Russia.

With increasing trade between China and Mongolia in recent years, import and export freight flows from Zamiin-Uud to Ereen Hot has been growing rapidly, As a result, road congestion has become increasingly prominent.

Completion of the highway is expected to improve the efficiency of goods transportation.