New Delhi: While a diplomatic crisis with India brews at home, Maldives President Mohammed Muizzu heaped praise on China’s Belt and Road Initiative (BRI) and batted for Chinese investment in his country, while speaking at an event in Fuzhou.
Muizzu, who is on a state visit to China — his first since becoming president a couple of months ago — was speaking at an ‘Invest Maldives’ business event.
“The fact that I am here in China on my first state-level visit is testament to the commitment of His Excellency President Xi Jinping and the people of China to the Maldives. We have no doubt that China will be our closest partner in development,” the Maldivian President told the audience.
“With the unwavering support of China, we are confident that we can attain and exceed our goals and create a prosperous future for our people,” he added.
Over the weekend, a diplomatic crisis unfolded between Male and New Delhi at a time when bilateral relations were already on rocky ground. The Maldives government suspended three ministers after they made disparaging remarks against Prime Minister Narendra Modi and Indians.
This came after Muizzu, who led an “India Out” campaign ahead of the elections last year, demanded the removal of Indian troops from the island nation which he sees as a threat to his country’s national security. His government also does not plan to renew an agreement with India for conducting joint hydrographic surveys in Maldivian waters.
While speaking at the event in Fuzhou, Muizzu praised the BRI, which is a mega-infrastructure project that seeks to link East Asia and Europe and broaden China’s economic and political influence.
“Maldives became an early party to His Excellency President Xi Jinping’s Belt and Road Initiative in 2014 which has delivered the most significant infrastructure projects witnessed in the Maldivian history,” he said.
Last October, China hosted the Third Belt and Road Forum and Maldives sent a special envoy to attend it.
In his speech, Muizzu noted two strategic projects in Maldives as in line with BRI’s vision. This includes a mega project to develop the Velana International Airport which will cater to 25 million passengers.
“The new vision for our central airport that I launched just a few days before I arrived here, and the Commercial Port Project are key strategic initiatives of my government that are in alignment with the BRI vision of land, ocean, air and digital connectivity. The government is keen on exploring and taking partnerships for these projects under the framework of the Belt and Road Initiative,” Muizzu said.
China is Maldives’ largest foreign lender, comprising about 20 percent of its total public debt, according to data from the International Monetary Fund (IMF). Data shows that Maldives owes China about $1.3 billion. The island country’s risk of external debt distress has been classified as “high” by the IMF.
In his remarks, Muizzu said foreign investments and “external financial resources” were crucial for the successful rollout of his many proposed initiatives.
However, some Maldivian politicians have alluded to fears of a Chinese debt trap. Former Maldivian vice president Ahmed Adeeb told ThePrint in an interview that Maldives needs to “balance” its foreign policy so that its economy doesn’t go “the Sri Lanka way”.
Muizzu previously served as a governor from Maldives to the China-led Asian Infrastructure Investment Bank (AIIB) in 2017. He has also served as mayor of Male and housing minister under the government of former President Abdulla Yameen. Muizzu was chosen by his party to be a successor to Yameen, who was also viewed as anti-India and was ineligible to run for elections after being jailed on money-laundering charges.
‘Committed to implementing FTA’
In 2014, when Yameen was in power, his government sought to establish a Free Trade Agreement (FTA) with China, which was approved by the Maldivian Parliament in 2017. However, implementation of the pact stalled in subsequent Maldivian presidencies.
In his speech at the China event, Muizzu said his government would work to implement the agreement.
“The FTA’s aim to boost bilateral trade and investments, especially increasing our export of fish products to China, is a key priority for us through the FTA. My government is committed to ensure quick implementation of the agreement,” he said.
Muizzu also talked about diversifying the Maldivian economy, which relies heavily on tourism.
During the diplomatic spat with India, calls to boycott travel to Maldives were raised on social media. Indians were the second-largest nationality to visit Maldives last year, but new bookings and inquiries to travel to the island have dropped.
According to the Maldives tourism ministry, Russians were the highest number of tourists to Maldives with 1.91 lakh arrivals from January-November 2023. Indians accounted for the second-highest number at 1.83 lakh visitors and the Chinese came in third with 1.75 lakh tourists.
In his remarks, Muizzu encouraged China to regain the number one position which it held pre-pandemic.
“The government has plans to diversify the tourism product and offer new experiences. Initiatives include a top-tier school of hospitality and exploring sports, medical and cultural tourism. China was our number one market pre-COVID, and it is my request that we intensify efforts for China to regain this position,” Muizzu said.
(Edited by Tikli Basu)
Also read: Maldives tourism industry on row: India ‘first responder to crises, aided post-Covid recovery’
Nice story nobody is talking about this event. From other reports we were hearing that India was the number one tourist contributor to Maldives followed by Russia. So this helps. Moreover 25 million (2.5 Cr) passengers at a single Velana airport ? The figure ??