China–Maldives relations
Diplomatic relations between the People's Republic of China and the Maldives were established in 1972. China has an embassy in Malé which opened in November 2011, and the Maldives has an embassy in Beijing which opened in 2009. Approximately 70 percent of the Maldives' total debt is attributed to Chinese projects, with an annual payment of $92 million to China, constituting around 10 percent of the country's entire budget. China has become pervasive in the Maldives, exerting influence over infrastructure, trade, and energy sectors, raising concerns of a new form of Chinese entrapment.
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China employs economic coercion as a means to advance its broader objectives. This perspective, frequently articulated by former Maldivian President and current Speaker of Parliament, Mohammed Nasheed, implies that China aims to achieve commercial dominance in its trading partners, frequently employing a 'debt-for-equity' exchange to secure strategic assets while ensnaring these nations in unsustainable debt. A prominent example often cited to support this strategy is Sri Lanka's 99-year lease of the Hambantota port to Beijing.
China-Maldives ties improved with the election of Mohamed Muizzu as President in 2023. Likewise, relations between the Maldives and India deteriorated, with relations hitting a new low after an incident involving the Indian Coast Guard boarding three Maldivian fishing boats within the Maldive's Exclusive Economic Zone. On March 5, 2024, the Maldives and China signed a bilateral military pact in a further sign of warmer Sino-Maldivian ties vis-a-vis worsening Indo-Maldivian ties. President Mohamed Muizzu considers his country's relationship with Beijing as one of the Maldives' closest 'allies and developmental partners' in the region.