MarketChina–Maldives relations
Company Profile

China–Maldives relations

Diplomatic relations between the People's Republic of China and the Maldives were established in 1972. China has an embassy in Malé which opened in November 2011, and the Maldives has an embassy in Beijing which opened in 2009. Approximately 70 percent of the Maldives' total debt is attributed to Chinese projects, with an annual payment of US$92 million to China, constituting around 10 percent of the country's entire budget. China has become pervasive in the Maldives, exerting influence over infrastructure, trade, and energy sectors.

History
The relations between China and the Maldives date back hundreds of years. A record from the Tang dynasty documents a visiting Maldivian delegation bearing gifts from King Baladitiya to Emperor Gaozong in 658 AD, and repeatedly in 662 AD. The Maldives are referred to as "Mo-lai". The Chinese explorer Zheng He visited the islands in 1412 and 1417 AD. The Maldives has historically been aligned with India since its independence in 1965 but has increasingly engaged with China, particularly after joining China's Belt and Road Initiative (BRI) in 2014. Maldives strongly supported China's 2007 application to join the South Asian Association for Regional Cooperation (SAARC) as an observer. In November 2011, China opened an embassy in Malé. In July 2022, the Chinese embassy in the capital city Malé received a bomb threat, sent via the city's website, that also targeted a Russian consulate. Security forces were dispatched to the affected areas and the residence of politician Mohamed Nasheed, and some streets were cordoned off. ==High level visits==
High level visits
In 1999, the People's Liberation Army chief of staff visited Malé, and Chinese Premier Zhu Rongji visited in 2001. In 2002, the Maldives Minister of Defense and National Security visited China. In 2010, President Mohamed Nasheed made a state visit to China. In May 2011, Wu Bangguo, the Chairman of Chinese National People's Congress and member of the CCP Politburo Standing Committee, visited the Maldives. In September 2012, President Mohamed Waheed Hassan Manik met Premier Wen Jiabao in China. In December 2012, the Maldives Minister of Defense and National Security visited China. In September 2014, President Abdulla Yameen traveled to China, and during the next month Xi Jinping, President and the General Secretary of the Chinese Communist Party, visited Yameen. In August 2017 three Chinese navy warships made a port call to Malé. In December 2017, in China, President Yameen signed a free trade agreement with China; notably this was the Maldives' first free trade agreement. The Maldives has significantly strengthened its relationship with China, underscored by President Mohamed Muizzu's inaugural state visit to China in January 2024, where he signed twenty new agreements including financial and military assistance. ==Economic relations==
Economic relations
Following the defeat of Abdulla Yameen in the September 2018 presidential election, the government of Ibrahim Mohamed Solih raised concerns about the level of Chinese debt incurred by Yameen's government. In December 2019, the then-Speaker of the People's Majlis and former president Mohamed Nasheed labelled debts incurred to build projects such as the Sinamalé Bridge, part of a debt trap. Former Maldivian officials and Chinese representatives criticized Nasheed's lack of detailed accounting, and worried that the amount was still a large amount for the islands. China's enduring economic partnership with the Maldives for over a decade has remained robust, positioning Beijing well to steadily pursue its strategic goals in Male. As of 2024, the Maldives already owes US$1.3 billion to China, which represents the largest percentage of its debt. On January 1, 2025, the China-Maldives Free Trade Agreement officially came into effect. == Infrastructure cooperation ==
Infrastructure cooperation
Under President Mohamed Nasheed, Beijing financed a housing complex in Hulhumalé, "the largest civilian housing project in the history of the country and the first commercial project undertaken by the Chinese in the Maldives". The upgrade of Malé International Airport was awarded to China after the eviction of Indian contractors. Beijing's initiatives gained greater momentum during the presidency of Abdulla Yameen Abdul Gayoom, who assumed office in 2013 and exhibited a notable receptiveness to Beijing's trade initiatives. == Tourism ==
Tourism
363,000 Chinese tourists visited Maldives in 2014. On February 17, 2023, the Agreement between the Government of the People's Republic of China and the Government of the Republic of Maldives on Mutual Visa Exemption came into effect, allowing holders of valid Chinese ordinary passports and travel documents to enter the Maldives visa-free for 30 days. == Present-day relations ==
Present-day relations
Mohamed Muizzu became the first president to visit China on January 10, 2024. During the state visit, the two countries agreed to develop an "Action Plan" for establishing a comprehensive strategic cooperation partnership between China and Maldives from 2024 to 2028. Additionally, the two governments agreed to sign 20 MoUs. Mohamed Muizzu referred to China as a valued ally during the visit. The Chinese research vessel Xiang Yang Hong 03 arrived at Male seaport on 8/2/2024. The survey ship has the capability to conduct civilian research as well as military surveillance, and is strategically positioned in the Indian Ocean Region (IOR). China and the Maldives reached a bilateral military agreement on March 5, 2024. The impact was regarded by analysts, as significantly affecting the geo-security environment of India. == Triangular relations ==
Triangular relations
Impact on relations with India Following growing Chinese influence in Maldives, India–Maldives relations had soured in a number of areas including defence and security. China and the Maldives in 2018 were looking to construct a Joint Ocean Observation Station; the Government of India and the Maldivian Democratic Party expressed concerns that it will be used for military applications by China. Media reports later indicated that Maldives might cancel the plans. Impact on relations with United States The US has a Maldives-focused assistance program within the United States Department of the Treasury to provide "assistance on debt strategy and domestic debt management". The opening of a U.S. embassy in the Maldives in 2023 is a continuation of these strategic efforts. == References ==
tickerdossier.comtickerdossier.substack.com