Maldives Enhances Ties With China, Signaling A Shift From India, Upgrading To "Comprehensive Strategic Cooperative Partnership"
During the first state visit of newly elected Maldivian President Mohamed Muizzu to Beijing, China and the Maldives strengthened their ties, upgrading their relationship to a "comprehensive strategic cooperative partnership." President Xi Jinping referred to Muizzu as "an old friend" and highlighted the historic opportunity for both nations to enhance their relationship.
Muizzu, who assumed office in November, ran on an "India Out" campaign platform, expressing concerns about New Delhi's influence and framing it as a threat to sovereignty. The move reflects a shift in the Maldives' foreign policy, with Muizzu's government seeking closer ties with China while asking Indian military personnel to leave.
Chinese President Xi Jinping meets Maldives Prez Muizzu in Beijing pic.twitter.com/QVuc8XBuzG — Sidhant Sibal (@sidhant) January 10, 2024
China's decision to upgrade relations with the Maldives opens the door for increased investment in the Indian Ocean archipelago. This move mirrors China's expanding influence in the region, where neighboring countries like Sri Lanka have already gravitated toward Beijing.
During the meeting, 20 key agreements were signed between China and the Maldives, emphasizing China's significant role in the Maldives' economic success and infrastructure development. China is the largest bilateral creditor to the Maldives, holding around 20% of its public debt, amounting to $1.37 billion. Chinese firms have also invested an additional $1.37 billion in the Maldives since it joined the Belt and Road Initiative in 2014.
President Xi assured China's support for the Maldives in safeguarding its national sovereignty, independence, and national dignity. The prospect of exchanging governance experiences between the two nations was also highlighted.
The Maldives faces challenges due to its growing debt to China, and the World Bank has cautioned against further alignment with China, citing a buildup of sovereign exposure during the pandemic and a lack of domestic investment opportunities.
President Xi expressed support for increasing the number of direct flights between China and the Maldives, potentially boosting the Maldives' travel and tourism sector, a crucial contributor to its economic growth. The Asian Development Bank noted that the sector constituted 79% of economic growth in the Maldives in 2022.
The evolving dynamics in the region highlight China's strategic influence and economic engagement, prompting shifts in geopolitical alignments and alliances.
