The presidency of Mohamed Muizzu has marked a boom period for ties between Maldives and China. On a formal visit to Beijing in 2024, at the invitation of President Xi Jinping, Muizzu was emphatic about the state of bilateral relations. “China is one of our closest allies and development partners,” he remarked, while hailing China’s impact on the island nation in delivering “the most significant infrastructure projects witnessed in Maldivian history.” 

The visit saw the two leaders sign agreements in 20 key areas, ranging from security cooperation and disaster risk reduction to the digital economy and tourism. The latter was a central focus for Muizzu, who laid out his administration’s strategy for the sector. “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.” The speech concluded with a request to “intensify efforts” for China to regain its position as the number one source of tourist arrivals. That plea that was answered in recent weeks, when new figures from the Maldives Ministry of Tourism revealed that a 45% rise in visitors year on year had seen China take back the top spot. 

The two high points bookended a year that has seen a flurry of diplomatic exchanges, including further high-level bilateral talks in Beijing in July, the signing of a trade and investment memorandum of understanding in September and a keynote speech by the Chinese ambassador at the Maldives-China Trade and Investment Cooperation Conference in Maldives’ capital Malé.     

The value of bilateral trade between the two countries rose 75% to around US$700 million in 2023 – a figure the Maldives government is forecasting will rise to US$1 billion when the free trade agreement signed with Beijing comes into effect in January 2025. The pact will see duties removed on 91% of goods, according to Minister of Economic Development and Trade Mohamed Saeed, paving the way for increased trade flows and further economic collaboration.  

Building bridges with China 

Appointed in November 2023, Minister of Economic Development and Trade Mohamed Saeed discusses the government’s national growth strategy, centred on economic diversification and further collaboration with China. 

Q: What is your ministry’s strategy for growing the Maldives' economy?  

Improving the existing tourism industry is a key focus, followed by expanding into various sectors, still within the tourism sphere, via new development opportunities. Our government aims to diversify into areas such as the maritime economy, digital economy and financial economy, while also enhancing infrastructure to support these efforts.  

Q: How do you seek Maldives to be perceived in China?  

Our historical ties with China date back a long time. Over the years, this relationship has evolved, and now we stand as close friends, mutually supportive. This friendship has led to a deep level of trust between our two countries, which is rare to achieve, leading to increased commerce, investments and people-to-people exchanges, creating numerous opportunities for both nations. 

Q: How important are Chinese-backed developments for Maldives’ economy?  

The China-Maldives Friendship Bridge stands as a significant symbol of the Chinese government's commitment. It has elevated economic activities to new heights between 2013 and 2018. Additionally, the current airport development, supported by finance from the Chinese Exim Bank, is also a major contributor to propelling our economy forward. There are numerous other investment opportunities, both in social and economic development, which further enhance our progress.  

Q: What is your strategy for boosting international trade?  

We welcome free trade arrangements with countries willing to engage in such agreements. China has extended its hand to us for free trade, resulting in the world's largest economy entering into an agreement with one of the smallest. This sets an example for the rest of the world.  

Being an oceanic nation, maritime trade presents a significant opportunity for us. We are focusing on developing ports, establishing free zones and entering the re-export market. By importing and re-exporting goods, we can stimulate economic activity that benefits our people.