Maldives must tread carefully as it seeks to rebalance ties with China, India, analysts say
Spokesman for president-elect Solih’s party described deals with Beijing as ‘debt traps’ but island nation relies on Chinese investment, tourists
China is “bracing for the worst” after the Maldives voted to oust Beijing-friendly President Abdulla Yameen, analysts said on Monday, while warning that the island nation should tread carefully as it seeks a new balance in its relations with China and India.
Although the Maldives – an archipelago of 26 ring-shaped atolls in the Indian Ocean – has traditionally maintained strong ties to New Delhi, Yameen cultivated a close relationship with Beijing during his five years in office.
China sees the Maldives as a key location along the route of its “Belt and Road Initiative”, which aims to develop a network of trade links across Asia and into Africa and Europe. But as a result of the infrastructure development plans signed by the two countries during Yameen’s tenure, the tiny nation is now US$1.3 billion in debt to China, a figure that represents more than a quarter of its gross domestic product, according to Reuters.
With the presidential election victory of Ibrahim Mohamed Solih of the Maldivian Democratic Party (MDP), who according to the country’s election commission picked up more than 58 per cent of the vote, there could now be a shift in relations between Malé and Beijing.
Srikanth Kondapalli, a professor of Chinese studies at Jawaharlal Nehru University in New Delhi, said that Beijing would now be preparing itself for a review of the infrastructure projects and economic deals it signed with the Maldives, including the free-trade agreement signed with the Yameen government late last year.
“China is bracing for the worst,” he said.