The China-Maldives Free Trade Agreement (FTA) officially took effect on January 1, 2025, eliminating tariffs on over 95 percent of products traded between the two nations. This new agreement is expected to boost trade by reducing costs and increasing the competitiveness of goods exchanged between China and the Maldives.
In Shandong Province, a major exporter in China, local businesses are optimistic about the agreement’s impact. Zhao Zhengcong, chief engineer of a local electronics manufacturer, expressed confidence that exports to the Maldives will increase by 20 percent in 2025. “The agreement will improve our products’ export competitiveness, and we are in talks with our Maldivian clients to expand our export scale,” Zhao said.
The FTA covers a broad range of goods traded between the two countries. Chinese exports, including ships, steel, furniture, ceramics, vegetables, and fruits, will benefit from reduced tariffs. On the other side, the Maldives will see tariffs lifted on items such as seafood, nuts, and wooden ornaments.
In Shandong, industries such as plastic products, steel, and automotive parts are expected to gain significantly from the tariff reductions. According to Bi Haijun, director of the tariff department at Qingdao Customs, Shandong enterprises are expected to save approximately 8 million yuan in tariff cuts and exemptions during the first year of the agreement’s implementation.
This development marks a significant milestone in strengthening economic ties between China and the Maldives, with both sides anticipating enhanced trade and greater collaboration across various sectors.
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