China and the Maldives strengthened their relationship during President Mohamed Muizzu’s recent state visit to Beijing.
The two nations agreed to a “comprehensive strategic cooperative partnership,” signifying a closer alignment of interests.
Muizzu, who took office in November, emphasized his “India Out” campaign platform, portraying India as a threat to Maldives’ sovereignty due to its substantial influence. His government has requested the departure of numerous locally stationed Indian military personnel while pursuing opportunities for Chinese investors despite being significantly indebted to Beijing.
China’s decision to elevate its ties with the Maldives not only solidifies its investment presence but also counters India’s influence in the region. Sri Lanka, another neighbor of India, has also leaned towards China in recent times.
“During the talks, President Dr Muizzu expressed gratitude for China’s significant role in the Maldives’ economic success… and infrastructure development,” a statement from his presidential office read following the meeting, adding that “20 key agreements between the two countries” had been signed.
However, the Maldives’ growing debt to China is a cause for concern, as it owes Beijing US$1.37 billion, representing around 20 percent of its public debt. Chinese firms have also invested $1.37 billion in the Maldives since participating in the Belt and Road Initiative in 2014.
“China firmly supports the Maldives in safeguarding its national sovereignty, independence and national dignity,” state media reported China’s President Xi Jinping as saying. Beijing would also be willing to “exchange experience of state governance” with Male, Xinhua said.
Despite these developments, the World Bank warned of potential risks associated with further aligning with China, given the accumulation of sovereign exposure and a lack of domestic investment opportunities in the Maldives.
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