Caixin
Caixin Global – Latest China News & Headlines

Home >

TRENDING
Opinion: No, China Isn’t Waiting Out Trump for a Better Trade Deal
Shanghai Paves the Road for Autonomous Vehicles
China’s Internet Safety Week Begins With Alarming Report on Data Privacy
LATEST
Electric Car Battery-Maker Farasis Seeks IPO Cash to Offset Sputtering Sales
Foxconn Founder Terry Gou Abandons Taiwan Leadership Bid
Shenzhen to Make All New Ride-Hailing Vehicles Fully Electric
Suning.com to Open More Than 200 In-Carrefour Stores by September
Experts: Huawei’s Offer to License 5G Technologies a ‘Smart PR Move’
Shanghai Paves the Road for Autonomous Vehicles
Provincial Party Chief Calls On Xiongan to Become Tech Powerhouse
What Tepid Reception? JD.com Notches Turbocharged iPhone 11 Preorders
China’s Internet Safety Week Begins With Alarming Report on Data Privacy
Opinion: No, China Isn’t Waiting Out Trump for a Better Trade Deal
In Depth: Is China’s Animation Industry Ready to Take Off?
Uber-Like Truck-Rental Startup Mulls IPO After Breaking Even
China Evergrande Plans to Build Electric Cars, Batteries in Qingdao
Terry Gou-Backed LCD Panel Plant Seeks Cash Injection
Self-Driving Taxi Industry to Hit Key Inflection Point Next Year, Insider Says
Video App Kuaishou Mulls U.S. IPO, Raises Funds at $25 Billion Valuation
London Stock Exchange Bid in the Works For Long Time: HKEx Chairwoman
Chinese Investors React Coolly to Signs of Easing Trade Tensions
Kweichow Moutai Toasts Long-Term Partnership With Chinese Genomics Giant
After Opening Gates to Outside Food, Disney Clarifies What Is and Isn’t Allowed

By Bloomberg / Dec 18, 2018 09:54 AM / World

India has offered the Maldives $1.4 billion through a credit line and budgetary support as the tiny island nation’s new government pivots from a pro-China foreign policy to one focused on its close neighbor India.

The loan agreement came after talks between newly-elected Maldives President Ibrahim Mohamed Solih and Indian Prime Minister Narendra Modi. The two leaders discussed regional stability and defense cooperation as Solih visited the Indian capital on his first trip overseas as president.

The Maldivian leader made the visit as his nation reels from debt accumulated under the previous administration of pro-China strongman Abdulla Yameen, who had pursued close ties with Beijing -- including a trade deal -- and had alienated India. The numerous loans from China were similar to other countries in the region including Sri Lanka and Pakistan.

"Both nations are committed to the peace, stability and security of the Indian Ocean region," Modi said in New Delhi on Monday. "Both nations have agreed not to allow their territory to be used against each other’s interests."

In late September, the tiny nation of about 400,000 people voted Yameen out of office in a surprise election result that took on broader geopolitical significance as China’s Belt and Road infrastructure-building initiative was generating anxiety in the region and in Washington.

China has spent years building ports, roads and other infrastructure across the Indian Ocean, including the $1 billion Hambantota port in Sri Lanka it recently took over in a debt-to-equity swap.

New Delhi is particularly concerned about China’s investments in its neighborhood, in part because Beijing is financing infrastructure projects valued at about $60 billion across Pakistan, including in parts of disputed Kashmir that both New Delhi and Islamabad claim as their territory.

More recently, however, Pakistani militants attacked the Chinese consulate in the business hub of Karachi, killing seven people, while other governments -- including Malaysia -- reconsider or postpone projects because of concerns about their cost.

A visiting group of Maldivian ministers had previously pledged to pursue an " India first" foreign policy when they visited New Delhi in late November.

The country was seeking a credit line of around $1 billion at a concessionary rate of 1.5 percent and $200 million in "grant money" for budgetary support, Maldivian Finance Minister Ibrahim Ameer said at the time.

Related:

Portugal Agrees to Promote Belt and Road as EU Moves to Raise Scrutiny

China, Myanmar Move Ahead With Sea Port Project


Share this article
Open WeChat and scan the QR code