Maldives Ensures Local Businesses Remain Protected Under New China Trade Pact

International franchises in the Maldives will continue to operate strictly within existing regulatory frameworks, ensuring that landmark trade agreements do not dismantle protections for domestic businesses. Minister of Economic Development, Transport and Trade Mohamed Saeed provided this clarification during a parliamentary session following the activation of the Maldives-China Free Trade Agreement on January 1, 2025. The Minister's remarks addressed concerns raised by Ameen Faisal, Member of Parliament for Kanditheemu, regarding whether Chinese corporations were being granted access to the restaurant sector—a trade traditionally reserved exclusively for Maldivian citizens. The inquiry highlighted anxieties over whether the new treaty might override long-standing domestic safeguards. Minister Saeed explained that while the restaurant industry remains protected for locals, international franchises are permitted to operate under specific conditions defined by the foreign investment policy. These operations are strictly limited to resort islands and airport facilities, a regulatory measure that exists independently of the recent agreement with China. Acknowledging the complexity of the deal, the Minister noted that negotiations conducted between 2015 and 2017 involved extensive stakeholder consultations. However, he admitted that some disparities may exist between contemporary Foreign Direct Investment policies and the initial assurances provided to China during those early talks. Beyond addressing domestic restrictions, the government emphasized the reciprocal benefits of the pact, which grants Maldivian enterprises unique access to the vast Chinese market. This opening presents a significant opportunity for local exporters to scale their operations globally. Despite the strategic advantages, some commercial sectors have reported operational difficulties since the agreement took effect. Minister Saeed assured the Majlis (the Maldivian Parliament) that the government is working closely with the private sector to resolve these transitional challenges and ensure a smooth implementation of the treaty.