Op-ed: From concessions to win-win: China-Maldives FTA boosts Maldives’ growth

The following is an op-ed written by Kong Xianhua, the Chinese Ambassador to the Maldives.

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The China-Maldives Free Trade Agreement (CMFTA) is an important step to implement the consensus between the two heads of state. It strengthens the China-Maldives Comprehensive Strategic Cooperative Partnership and gives strong institutional support for facilitating trade and investment. Recently, many people have shown interest in how the CMFTA is being carried out. As the Chinese Ambassador to the Maldives, I would like to share a few views:

The CMFTA is a clear example of a major country offering real benefits to a smaller one. It is the first bilateral FTA the Maldives has ever signed. During the consultation, China respected the Maldives’ needs and made real trade concessions, such as cutting tariffs and opening its markets. For example, China will eliminate tariffs on 91.1% of Maldivian products immediately after the agreement take effect. In terms of customs procedures and trade facilitation, China will offer faster clearance for perishable goods like Maldivian marine products, making it much easier for these products to enter the Chinese market. This shows China’s policy of being friendly, sincere, and inclusive to its neighbors, and its role as a responsible major power. China is the first major economy to sign an FTA with the Maldives, setting a good example of fair cooperation between large and small countries. We hope more big countries will follow China's lead and build win-win trade ties with the Maldives.

The CMFTA will help improve people’s lives and support local economy. Under the agreement, 70.3% of Maldivian imports from China now enjoy zero tariffs. Most of these products cannot be made locally and must be imported. As the world’s top industrial producer, China is the ideal source. Since January 1, 2025, tariffs on items like construction materials, furniture, machinery, and electronics has dropped from 10–25% to zero. Customs clearance time has been cut from 5–7 days to just 2–3 days. This has made imports faster and cheaper, bringing direct benefits to ordinary people. Globally, cities like Hong Kong and Singapore grew into major trade hubs thanks to free port policies. In the same way, the CMFTA will not harm local businesses-- it could inspire new business models and development paths. The Maldivian people have demonstrated remarkable ingenuity, much like the success stories of Hong Kong and Singapore. With support from the CMFTA, they can build a unique development path and push forward economic transformation. This kind of open, cooperative growth may help the Maldives develop new competitive industries.

The CMFTA also brings great opportunities for Maldivian products to access the Chinese market. For a long time, Maldives’ top-quality seafood has gone mainly to the US and Europe. The Chinese market was barely explored. Now, China is the world’s second-largest importer and has the biggest middle-income group. It’s worth noting that in just 20 years, China became the Maldives’ largest source of tourists. This shows the strong purchasing power and interest of Chinese consumers in high-quality products. Under the CMFTA, China removed tariffs on 91.1% of imports from the Maldives right after the agreement took effect. Nearly all Maldivian fish and seafood now enter China duty-free. Marine products like tuna have the potential to become as popular in China as Maldivian tourism. We hope Maldivian companies will use their experience in tourism marketing to build seafood brands that stand out in China, and cultivate new engines of export growth to achieve economic diversification.

The CMFTA opens up new prospects for the deep economic integration between the two countries. It not only improves trade but also offers a platform for Chinese companies to invest in the Maldives. With Chinese capital, technology, and expertise, the Maldives can make big strides in areas like aquaculture, marine product processing, modern agriculture, and digital industries. Today, China-Maldives relations are growing fast, with strong political trust and close people-to-people ties. This lays a solid base for deeper economic integration. As the CMFTA continues to bring results, our economies will grow closer, bringing more real benefits to both peoples.

From the “blue miracle” of China-Maldives tourism cooperation to the “golden gateway” forged by the CMFTA, our two nations are crafting a contemporary model of equal-footed, mutually beneficial cooperation between countries of different sizes. This “trans-Indian Ocean bridge” of development will deliver more tangible benefits to our peoples and stand as a vivid example of building a community with a shared future for mankind.