Great potential to promote Sino-Maldivian economic cooperation: minister

The trade ties between the Maldives and China have been growing stronger day by day and there is still a great potential for the bilateral economic cooperation, Maldivian Economic Development Minister Mahmood Razee said on Friday.

Razee made the remarks in an exclusive interview with Xinhua prior to the forthcoming visit by Wu Bangguo, chairman of the Standing Committee of the National People's Congress (NPC) -- China's top legislature, to the Maldives.

Razee said China is now the largest market for tourists visiting the Maldives which has seen more than 118,960 Chinese tourists or 15 percent of the market share last year, and Maldives now has direct air connections to some of the leading Chinese cities making it easier for Chinese visitors and Maldivians to travel.

"In the past China has provided a number of assistance while Chinese contribution to alleviate housing congestion issue in capital Male is significant. Chinese companies are assisting us in the construction of housing units and Maldives is thankful for that," Razee said.

"All in all, I see that our economic cooperation is getting stronger and deeper," said Razee.

As for the future, the minister said, there are many areas for the cooperation. Technology and know-how transfer are potential where business in both countries can collaborate. Also assistance to build human and infrastructure capacity is another means through which the cooperation can be deepened, the minister added.

Razee said there is a great potential for the economic cooperation between the Maldives and China as the Maldivian government's reforming policies bring about many economic opportunities.

"China is now our number one market for tourist arrivals and a lot of opportunities are there in terms of developing the right product for the Chinese tourists. In addition, there are 60 old resorts that under construction and many of the developers are looking for financing and strategic partners to assist in the development of the resorts."

He said the Maldives will do more work to make the preferential Zero Tarrif Agreement with China, which came into effect in February 2009, more meaningful and practical for the business.

He said the new policies are based on achieving diversification in key economic sectors and broadening economic base with a view towards increasing exports, both in goods and services.

Razee said in the past the tourism sector predominantly focused on high end resorts and now the government has opened the tourism sector for smaller scale investments to tap into the growing middle income tourists coming from emerging economies.

Razee said the government is pursuing a strong Public Private Partnership program to encourage private sector investment in non- traditional sectors like real estate, energy, health, education and commercial ports development in the outer islands.

On Oct. 14, 1972, the People's Republic of China and the Republic of Maldives established diplomatic relations. Chinese ambassador to Sri Lanka is concurrently serving as ambassador to the Maldives. From then on, friendly relations and cooperation between China and the Maldives have constantly developed with many exchanges of top-level visits.

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