Maldives upgrades ties with China amid pivot from India

BEIJING:

China and the Maldives upgraded their relationship on Wednesday during newly elected President Mohamed Mojoo’s first state visit to Beijing after a campaign in which he branded China’s regional rival India as a threat to sovereignty.

Chinese President Xi Jinping, speaking at the Great Hall of the People, called Muizzu “an old friend” as the Asian giant laid the groundwork for further investment in the Indian Ocean archipelago, agreeing to a “comprehensive strategic cooperative partnership”.

“China-Maldives relations are facing a historic opportunity to continue the past and move forward into the future,” Xi told Muizzu, Chinese state media reported.

Muizzu took office in November after winning his “India Out” campaign in which he described New Delhi’s massive influence as a threat to sovereignty. His government has since asked dozens of local Indian military officials to leave as it negotiates opportunities for Chinese investors, despite being heavily indebted to Beijing.

Reading China and Maldives upgrade ties as presidents hold talks

Relations between India and China have been strained since soldiers from both sides clashed in the western Himalayas in June 2020, resulting in the deaths of 20 Indian soldiers and four Chinese soldiers.

By upgrading ties with the Maldives, China is laying the groundwork for further investment in a region where India has already seen another neighbor, Sri Lanka, gravitate towards China.

“During the talks, President Dr. Muizzu expressed his gratitude for China’s important role in the Maldives’ economic success and infrastructure development,” his presidential office announced after the meeting, adding that “20 key agreements between of the two countries”. had been signed.

The Maldives owes China $1.37 billion, or about 20 percent of its public debt, according to World Bank data, making Beijing its biggest bilateral creditor ahead of Saudi Arabia and India, which it owes $124 million dollars and $123 million, respectively.

Chinese companies have invested an additional $1.37 billion in the Maldives since its decision to join the Belt and Road Initiative in 2014, according to data from the American Enterprise Institute think tank.

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“China strongly supports the Maldives in safeguarding its national sovereignty, independence and national dignity,” Xi said. Beijing would also be willing to “exchange state governance experience” with Male, Xinhua said.

Muizzu was given a tour of the Chinese Communist Party Museum in Beijing before meeting Xi, he showed a video on X, formerly known as Twitter, from his presidential office account.

The World Bank in an October development report on the Maldives warned that further appeasement towards China could cause problems as there had been a “build-up of sovereign exposure” during the pandemic and there was a “lack of domestic investment opportunities”.

Xi said he supported increasing the number of direct flights between the two countries, in a potential boon for the Maldives’ travel and tourism sector, which accounted for 79 percent of economic growth in 2022, according to the Asian Development Bank.