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China–Maldives relations

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 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, raising concerns of a new form of Chinese entrapment.[2]

China–Maldives relations
Map indicating locations of China and Maldives

China
Maldives
Diplomatic mission
Embassy of China, MaléEmbassy of the Maldives, Beijing
Envoy
Her Excellency Ambassador Wang LixinAmbassador Fazeel Najeeb

China employs economic coercion as a means to advance its broader objectives. This perspective, frequently articulated by former Maldivian President and former Speaker of Parliament, Mohamed 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]

China-Maldives ties improved with the election of Mohamed Muizzu as president in 2023. Likewise, relations between the Maldives and India deteriorated, with relations hitting a new low after an incident involving the Indian Coast Guard boarding three Maldivian fishing boats within the Maldives's Exclusive Economic Zone.[4] On March 5, 2024, the Maldives and China signed a bilateral military pact in a further sign of warmer Sino-Maldivian ties vis-a-vis worsening Indo-Maldivian ties.[5] President Mohamed Muizzu considers his country's relationship with Beijing as one of the Maldives' closest 'allies and developmental partners' in the region.[5]

History

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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.[6]

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.[7]

Maldives strongly supported China's 2007 application to join the South Asian Association for Regional Cooperation (SAARC) as an observer.[8]

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.[9]

High level visits

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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.[10]

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.[11] In September 2012, President Mohamed Waheed Hassan Manik met Premier Wen Jiabao in China.[10]

In October 2012, Li Changchun, member of the Politburo Standing Committee, visited the Maldivian President Mohamed 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".[12]

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.[10]

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.[7]

Debt trap allegations

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See also: Debt-trap diplomacy

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.[13][14][15] 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.[16][17] 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.[18]

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.[19]

As of 2024, the Maldives already owes US$1.3 billion to China, which represents the largest percentage of its debt.[20]

Infrastructure cooperation

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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".[21] The upgrade of Malé International Airport was awarded to China after the eviction of Indian contractors.[10]

Large infrastructure projects facilitated by Chinese investment, including the China-Maldives Friendship Bridge, are a significant aspect of the cooperation between China and the Maldives.[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.[10][22] 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.[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.[23]

The Export-Import Bank of China has provided more than $1 billion to the Maldives for upgrading an airport, a new bridge, and relocating Maldives's port.[24]

Tourism

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363,000 Chinese tourists visited Maldives in 2014.[10] In 2018 and 2019 there was a gradual decrease in Chinese tourists.[25]

Present-day relations

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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.[26]

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).[27]

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.[5]

On April 21, 2024, the pro-China People's National Congress led by President Muizzu won a landslide victory in the parliamentary election with 71 of the 93 seats in the People's Majlis, the unicameral parliament of the Maldives.[28][29][30]

Triangular relations

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Impact on relations with India

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Further information: India-Maldives relations

Following growing Chinese influence in Maldives, India–Maldives relations had soured in a number of areas including defence and security.[10] Successive Indian Governments expressed concern about the growing Chinese influence in the Maldives.[31] 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.[32] Media reports later indicated that Maldives might cancel the plans.[33][10] 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.[34]

Impact on relations with United States

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Further information: Maldives–United States relations

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".[10] The opening of a U.S. embassy in the Maldives in 2023 is a continuation of these strategic efforts.[7]

References

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  1. ^ "Sino-Maldives relations". China Daily. August 19, 2009. Archived from the original on October 20, 2022. Ignore "not found" message, scroll down.
  2. ^ Manning, Robert A.; Gopalaswamy, Bharath (March 21, 2018). "Is Abdulla Yameen Handing Over the Maldives to China?". Foreign Policy. Retrieved May 7, 2024.
  3. ^ Xiong, Gloria (July 23, 2020). "Beijing increasingly relies on economic coercion to reach its diplomatic goals". The Washington Post. ISSN 0190-8286. Retrieved September 21, 2023.
  4. ^ Sharuhan, Mohamed (February 3, 2024). "Maldives government asks India why its coast guard boarded 3 fishing boats". Associated Press. Retrieved May 7, 2024.
  5. ^ a b c Regan, Helen (March 5, 2024). "Maldives signs China military pact in further shift away from India". CNN. Retrieved May 7, 2024.
  6. ^ "China and Maldives friendship History". Embassy of the Maldives in China. Retrieved August 7, 2022.
  7. ^ a b c d "The Maldives Is Moving Toward China. Here's What to Know". Council on Foreign Relations. Retrieved May 7, 2024.
  8. ^ 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.
  9. ^ "Several areas in Male' cordoned off following bomb threats". The Press. July 5, 2022. Retrieved May 7, 2024.
  10. ^ a b c d e f g h i Smith, Jeff M. (October 28, 2020). "China and the Maldives: Lessons from the Indian Ocean's New Battleground". The Heritage Foundation. Retrieved November 5, 2020.
  11. ^ Pandit, Rajat (October 10, 2011). "China's stepped up moves in Maldives worries India". The Times of India. Retrieved May 7, 2024.
  12. ^ Lina, Yang (ed.). "China, Maldives eye furthered cooperation to boost ties". Government of China. Archived from the original on June 9, 2013. Retrieved January 8, 2014.
  13. ^ "Maldives election: Opposition defeats China-backed Abdulla Yameen". BBC News. September 24, 2018. Retrieved May 7, 2024.
  14. ^ "The Maldives counts the cost of its debts to China". Financial Times. February 11, 2019.
  15. ^ 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. Colombo. Retrieved September 29, 2020.
  16. ^ "Nasheed reignites 'debt trap' row with Chinese ambassador". Maldives Independent. December 15, 2019. Retrieved May 7, 2024.
  17. ^ Dixit, Rekha (December 13, 2019). "Chinese debt trap not just an economic issue: Maldives speaker Nasheed". The Week. Retrieved May 7, 2024.
  18. ^ Ethirajan, Anbarasan (September 17, 2020). "China debt dogs Maldives' 'bridge to prosperity'". BBC. Retrieved May 7, 2024.
  19. ^ a b Panda, Ankit (December 17, 2019). "Chinese Envoy in Maldives Pushes Back on 'Debt Trap,' Free Trade Agreement Concerns". The Diplomat. Retrieved May 7, 2024.
  20. ^ "Chinese debt casts shadow over Maldives' economy". Mint. September 18, 2020. Retrieved May 7, 2024.
  21. ^ Small, Andrew (February 10, 2018). "Maldives is a test case for India's strategic economic quest, and for Trump's Indo-Pacific idea". ThePrint. Retrieved May 7, 2024.
  22. ^ Kondapalli, Srikant (November 13, 2014). "Maritime Silk Road: Increasing Chinese Inroads into the Maldives". Institute of Peace and Conflict Studies. Retrieved November 5, 2020.
  23. ^ Nanda, Prakash (May 3, 2023). "India 'Shadowboxes' China In The Maldives; Looks To Knock Out Chinese Challenge In The Indian Ocean Nation". The EurAsian Times. Retrieved May 7, 2024.
  24. ^ Garlick, Jeremy (2024). Advantage China: Agent of Change in an Era of Global Disruption. Bloomsbury Academic. p. 112. ISBN 978-1-350-25231-8.
  25. ^ Mohamed, Shahudha (February 27, 2019). "Maldives hits new low in Chinese tourism market". The Edition. Retrieved May 7, 2024.
  26. ^ "Xi Jinping Holds Talks with President of the Maldives Mohamed Muizzu". Embassy of China in india. January 10, 2024. Retrieved May 7, 2024.
  27. ^ "Chinese research ship turned down by Sri Lanka to make Maldives resupply call". South China Morning Post. Agence France-Presse. January 24, 2024. Retrieved May 7, 2024.
  28. ^ Junayd, Mohamed (April 23, 2024). "Pro-China party wins Maldives election in landslide - reports". Reuters. Retrieved May 7, 2024.
  29. ^ "Pro-China party wins Maldives election in landslide". ABC News. Reuters. April 23, 2024. Retrieved May 7, 2024.
  30. ^ Xu, Weiwei (April 23, 2024). "Maldives' ruling party wins election in landslide". China Daily. Retrieved May 7, 2024.
  31. ^ Kumar, Amit (October 3, 2013). "China factor in India-Maldives Relations". India: National Maritime Foundation. Archived from the original on January 8, 2014.
  32. ^ Parashar, Sachin (February 26, 2018). "China's ocean observatory in Maldives sparks fresh security concerns". The Times of India. Retrieved May 7, 2024. 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.
  33. ^ Parashar, Sachin (June 17, 2019). "In relief to India, Maldives may scrap ocean deal with China". The Times of India. Retrieved May 7, 2024.
  34. ^ Chellaney, Brahma (May 11, 2015). "China's Silky Indian Ocean Plans". China-US Focus. Retrieved September 19, 2023.
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