China is in the race to become a no 1 in the world order and this time they are ingressing into the territory of Indian strong hold by appeasing its neighbours with soft loans and Maldives falls in line to get that aid.
Maldives Importance
The Maldives is a nation of 1,192 islands famous as a haven for tourists with pristine beaches and high-end resorts and in past few years it has witnessed a huge influx of Chinese visitors in recent years. Moreover it is trying to increase its presence in this nation so that when need arises it can set up a military base on its soil and control the sea as next war is going to be on the control of sea as we see China fighting on controlling South China sea.
Announcement for Aid
President Mohamed Waheed told Reuters that China will grant $500 million in loans to the Maldives and break up is as following:
- An agreement for a $150 million, primarily for infrastructure and housing projects
- $350 million being provided by China’s trade-focused Eximbank, in an interview.
Verdict
India has to become proactive by providing aid to neighbouring states and make sure that they do not seek aid from its arch rival China.
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