Chinese Ambassador to the Maldives, Kong Xianhua, has described the China-Maldives Free Trade Agreement (CMFTA) as a major opportunity for Maldives to enhance trade, access the Chinese market, and support economic diversification.

Speaking on the agreement, which came into effect on 1 January 2025, Ambassador Kong highlighted that 70.3 per cent of Maldivian imports from China now enjoy zero tariffs, including construction materials, machinery, electronics, and furniture. He noted that tariff removal, previously ranging between 10 and 25 per cent, and the reduction in customs clearance times from five to seven days to just two or three, have made imports faster and more affordable.

Addressing concerns that the agreement might harm local businesses, the Ambassador said the CMFTA could instead drive innovation and open new areas of economic activity. Citing examples like Hong Kong and Singapore, global trade hubs built on open economic policies, he suggested that Maldives could chart its own path by leveraging cooperation and the ingenuity of its people to build competitive industries.

He also noted the significant potential for Maldivian exports, particularly seafood, in the largely untapped Chinese market. While fish and marine products have traditionally been exported to the United States and Europe, the CMFTA now allows 91.1 per cent of Maldivian products, including most seafood, to enter China duty-free. He urged local businesses to apply their tourism marketing expertise to develop distinct seafood brands and expand exports.

Ambassador Kong added that the agreement also supports broader development goals. With increased Chinese investment, Maldives could advance in sectors such as aquaculture, marine product processing, modern agriculture, and digital industries. He said the CMFTA not only deepens economic integration but also fosters political trust and people-to-people ties.

He further noted that China is the first major economy to sign a bilateral FTA with Maldives, setting a precedent for equitable cooperation between nations of different sizes. He called the CMFTA a milestone in bilateral relations and a model for long-term economic partnership.