China, Maldives finish free trade negotiations

China finished its free trade negotiations with the Maldives on Sept 16, the Ministry of Commerce announced.

Under the agreement, 95 percent of bilateral trade will enjoy zero-tariff treatment. The two sides have vowed to open up their finance, medical care and tourism markets to each other and strengthen bilateral cooperation in a number of key fields.

The two countries started the negotiations in December 2015.

Tourism, navigation and fishery are the three pillars of the Maldivian economy, as well as its key fields to attract foreign investment.

By the end of 2013, China has invested only $1.65 million in the Indian Ocean island state, mainly in the fishery industry, indicating the potential to attract more Chinese investment.

China and Maldives are visa-free to each other, and have signed the bilateral air transport agreement, making it more convenient for the arrival of the Chinese investment.

China established diplomatic relations with the Maldives in 1972. President Xi Jinping paid a state visit to the country in September 2014, showing that the Chinese government attaches importance to the bilateral ties.

The bilateral trade volume increased from $1.36 million to nearly $98 million from 2000 t0 2013.

The Maldives became a tourist destination for Chinese nationals in 2002. In 2014, more than 360,000 Chinese tourists made the trip, up 9.6 percent year-on-year, accounting for one-third of foreign visitors in that year.