China–Maldives relations
Map indicating locations of China and Maldives

China
Maldives

Diplomatic relations between the People's Republic of China and the Maldives were established in 1972.[1] 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 $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, raising concerns of a new form of Chinese entrapment.[2]

China employs economic coercion as a means to advance its broader objectives. This perspective, frequently articulated by former Maldivian President and current Speaker of Parliament, Mohammed Nasheed, implies that China aims to achieve commercial dominance in its trading partners, frequently employing a 'debt-for-equity' exchange to secure strategic assets while ensnaring these nations in unsustainable debt. A prominent example often cited to support this strategy is Sri Lanka's 99-year lease of the Hambantota port to Beijing.[3]

History

The relations between China and Maldives date back hundreds of years. A record from 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.[4]

Maldives strongly supported China's 2007 application to join the South Asian Association for Regional Cooperation (SAARC) as an observer.[5]

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.[6]

High level visits

In 1999, the People's Liberation Army chief of staff visited Malé, and 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.[7] In May 2011, Wu Bangguo, the Chairman of Chinese National People's Congress and member of the Politburo Standing Committee of the Chinese Communist Party, visited the Maldives.[8] In September 2012, President Mohammed Waheed Hassan met Prime Minister Wen Jiabao in China.[7] In October 2012, Li Changchun, member of the Politburo Standing Committee, visited the Maldivian President Mohammed Waheed Hassan. Li said "China will continue to provide assistance to its capacity to help promote the Maldivian social and economic growth and support the country's infrastructure and human resource development".[9] 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 Maldivian President Abdulla Yameen. In August 2017 three Chinese navy warships made a port call to Male. In December 2017, in China, President Yameen signed a free trade agreement with China; notably this was the Maldives' first free trade agreement.[7]

Debt trap allegations

Following the defeat of Abdulla Yameen in September 2018, the government of Ibrahim Mohamed Solih raised concerns about the level of Chinese debt incurred by Yameen's government.[10][11][12] In December 2019, the 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.[13][14] 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.[15]

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.[16]

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".[17] The upgrade of Malé International Airport was awarded to China after the eviction of Indian contractors.[7]

An aerial view of the Sinamalé Bridge, from above of the Hulhulé Island. Originally called the China-Maldives Friendship Bridge.

By 2014, Chinese investments in the Maldives included the Malé-Hulhule Bridge, a Maldives Ministry of Foreign Affairs building, a national museum, housing projects, and investments in sectors such as renewable energy, tourism, and telecommunications.[7][18] Beijing's initiatives gained greater momentum during the presidency of Abdullah Yameen Abdul Gayoom, who assumed office in 2013 and exhibited a notable receptiveness to Beijing's trade initiatives.[19] Yameen's preference for China became evident during his presidency from 2013 to 2018. He put a halt to Indian projects and welcomed a succession of Chinese infrastructure initiatives in the Maldives.[20]

Tourism

363,000 Chinese tourists visited Maldives in 2014.[7] In 2018 and 2019 there was a gradual decrease in Chinese tourists.[21]

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.[7] Successive Indian Governments expressed concern about the growing Chinese influence in the Maldives.[22] 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.[23] Media reports later indicated that Maldives might cancel the plans.[24][7] China is presently vigorously extending its influence in the Indian Ocean. Under the leadership of President Xi Jinping, the Indian Ocean has been designated as the focal point of the Maritime Silk Road (MSR) initiative.[25]

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".[7]

References

  1. ↑ "Sino-Maldives relations". China Daily. 19 August 2009. Archived from the original on 20 October 2022. Ignore "not found" message, scroll down.
  2. ↑ Gopalaswamy, Robert A. Manning, Bharath (2018-03-21). "Is Abdulla Yameen Handing Over the Maldives to China?". Foreign Policy. Retrieved 2023-07-12.{{cite web}}: CS1 maint: multiple names: authors list (link)
  3. ↑ "Analysis | Beijing increasingly relies on economic coercion to reach its diplomatic goals". Washington Post. 2020-07-23. ISSN 0190-8286. Retrieved 2023-09-21.
  4. ↑ "China and Maldives friendship History". Maldives embassy in China. Retrieved 7 August 2022.
  5. ↑ Kelegama, Saman (2016). "China as a Balancer in South Asia". The new great game : China and South and Central Asia in the era of reform. Thomas Fingar. Stanford, California: Stanford University Press. p. 192. ISBN 978-0-8047-9764-1. OCLC 939553543.
  6. ↑ Mizna Mohamed (5 July 2022). "Several areas in Malé cordoned off following bomb threats". thePress.mv. Retrieved 7 August 2022.
  7. 1 2 3 4 5 6 7 8 9 Smith, Jeff M. (28 October 2020). "China and the Maldives: Lessons from the Indian Ocean's New Battleground". The Heritage Foundation. Retrieved 2020-11-05.
  8. ↑ Pandit, Rajat (10 October 2011). "China's stepped up moves in Maldives worries India". The Times of India.
  9. ↑ "China, Maldives eye furthered cooperation to boost ties". Archived from the original on 2013-06-09. Retrieved 2014-01-08.
  10. ↑ "Surprise victory for Maldives opposition". BBC News. 2018-09-24. Retrieved 2020-09-29.
  11. ↑ "The Maldives counts the cost of its debts to China". Financial Times. February 11, 2019.
  12. ↑ Macan-Markar, Marwaan (September 15, 2020). "China debt trap fear haunts Maldives government: Beijing reminds Male of sovereign guarantee on a private resort deal". The Nikkei. Retrieved September 29, 2020.
  13. ↑ "Nasheed reignites 'debt trap' row with Chinese ambassador". Maldives Independent. 15 December 2019.
  14. ↑ Dixit, Rekha (13 December 2019). "Chinese debt trap not just an economic issue: Maldives speaker Nasheed". The Week.
  15. ↑ Ethirajan, Anbarasan (17 September 2020). "China debt dogs Maldives' 'bridge to prosperity'". BBC.
  16. ↑ Panda, Ankit. "Chinese Envoy in Maldives Pushes Back on 'Debt Trap,' Free Trade Agreement Concerns". thediplomat.com. Retrieved 2023-09-18.
  17. ↑ Andrew Small (2018-02-10). "Maldives is a test case for India's strategic economic quest, and for Trump's Indo-Pacific idea". ThePrint. Retrieved 2020-11-05.
  18. ↑ Kondapalli, Srikant (13 November 2014). "Maritime Silk Road: Increasing Chinese Inroads into the Maldives". Institute of Peace and Conflict Studies. Retrieved 2020-11-05.
  19. ↑ Panda, Ankit. "Chinese Envoy in Maldives Pushes Back on 'Debt Trap,' Free Trade Agreement Concerns". thediplomat.com. Retrieved 2023-09-20.
  20. ↑ Nanda, Prakash (2023-05-03). "India 'Shadowboxes' China In The Maldives; Looks To Knock Out Chinese Challenge In The Indian Ocean Nation". Latest Asian, Middle-East, EurAsian, Indian News. Retrieved 2023-09-21.
  21. ↑ Mohamed, Shahudha (27 February 2020). "Maldives hits new low in Chinese tourism market". The Edition. Retrieved 2020-11-05.
  22. ↑ Kumar, Amit (3 October 2013). "China factor in India-Maldives Relations". India: National Maritime Foundation. Archived from the original on 8 January 2014.
  23. ↑ Parashar, Sachin (February 26, 2018). "China's ocean observatory in Maldives sparks fresh security concerns". The Times of India. A Joint Ocean Observation Station which China is looking to establish in the Maldives could prove to be another security challenge for the Indian government with the Maldivian opposition leaders claiming that the observatory will also have a military application with provision even for a submarine base.
  24. ↑ Parashar, Sachin (17 June 2019). "In relief to India, Maldives may scrap ocean deal with China". The Times of India. Retrieved 2020-11-05.
  25. ↑ "China's Silky Indian Ocean Plans". China-US Focus. Retrieved 2023-09-19.
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