Male: The Maldives and China have discussed ways to strengthen defence cooperation between the two countries, the Ministry of Defence has said. In a post published on X on Friday, the Maldivian Ministry of Defence said that Defence Minister Ghassan Maumoon met with his Chinese counterpart Admiral Dong Jun on the sidelines of the 11th Beijing Xiangshan Forum.
“During the meeting, the two ministers discussed ways to strengthen defence cooperation between the two countries,” it said, without revealing details of the discussions.
Maldives Ambassador to China Dr Fazeel Najeeb was also present during the meeting, it was reported. The Maldives and China have previously held talks to strengthen military ties. In March, the Maldives and China signed an agreement to provide military assistance to the Maldivian military and security services, according to a report by news portal adhadhu.com. Under the agreement, China will provide military equipment and training to the Maldives, President Mohamed Muizzu had said. However, he did not provide details.
Maldives signs MoU with China to facilitate current account transactions in respective currencies
Later on Saturday, the Maldives signed a Memorandum of Understanding with the People’s Bank of China to establish a framework for current account transactions and direct investments in their respective currencies and announced that it may soon have a branch of China’s largest bank, ICBC.
China, one of Maldives’ largest trading partners with bilateral trade exceeding $700 million and the main source of tourists to Maldives, will benefit significantly from this agreement, state-run media outlet Public Service Media (PSMNews) said here on Friday.
The MoU between the Maldives Ministry of Economic Development and Trade and the People’s Bank of China (PBOC) aims to facilitate smoother and more efficient trade and investment relations between the two countries by promoting the settlement of transactions in local currencies, PSMNews reported.
“Work is underway to open a branch of China’s largest bank, the Industrial and Commercial Bank of China (ICBC), in the Maldives,” Maldivian Economy Minister Mohamed Saeed was quoted as saying by the Sun.mv news portal.
“Negotiations are still ongoing,” Saeed added. The MoU was signed following President Mohamed Muizzu’s state visit to China in January 2024, where he met with President Xi Jinping to discuss strengthening the comprehensive strategic partnership between their countries and stressed mutual commitment to deepening economic cooperation, according to PSMNews.
Maldives-China FTA
The signing of this MoU represents an important milestone in strengthening economic ties and fostering greater trade and investment flows between the Maldives and China, he added. The Maldives is also working on a free trade agreement with China, the formalities of which have already been completed and which will be “activated” the moment a mutual agreement is reached, Saeed added.
The announcement comes ahead of President Mohammad Muizzu’s scheduled visit to India. The Maldives is negotiating a similar agreement with India on the rupee-to-rupee exchange rate. Bilateral relations between the Maldives and India have suffered a deterioration since pro-Chinese President Muizzu took office last November. At his insistence, India withdrew its military personnel from the three air platforms used for medical evacuation by May 10.
However, following External Affairs Minister S. Jaishankar’s visit in August this year, the Maldivian Ministry of External Affairs termed it as a “significant milestone” in bilateral relations and stressed that the two countries have expressed their desire to elevate their friendship and strong alliance to new heights.
Jaishankar’s official visit to the Maldives was the first high-level trip from New Delhi after President Mohamed Muizzu, seen as a pro-China leader, took office in November last year.
(With contributions from agencies)
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