Exclusive: Maldives set to pull out of China free trade deal, says senior lawmaker

[Mista]

The Maldives buy less than $300,000 from China while import more than $300 million?

Wow, calling it as looting is an understatement.

Their exports:

They don't produce much. So you have to look at the trading of services too, which includes tourism. Tourism makes up the largest share of their GDP, and China is the largest source of tourist. Their economy is based on tourism after all.

 

[Viet]

Their exports:

They don't produce much. So you have to look at the trading of services too, which includes tourism. Tourism makes up the largest share of their GDP, and China is the largest source of tourist. Their economy is based on tourism after all.

If tourism is the islands economy. Why it needs any Fta with any country? It is economic suicide.

 

[Cobra Arbok]

If tourism is the islands economy. Why it needs any Fta with any country? It is economic suicide.

you just asked the millionndollar question. For an economy such as the maldives that is entirely service based, what benefit does a fta provide ? It is obvious Yameen signed it for some political purpose, probably to spite india after he refused to follow the supreme court. Fortunately the maldivian voters were awake to what was happening and kicked im out. Other service-based island nations such as the seychelles and mauritius should learn from the maldives' mistakes.

 

[Mista]

If tourism is the islands economy. Why it needs any Fta with any country? It is economic suicide.

1) FTA isn't just about trading of goods, it's also about the trading of services which tourism is a part of.

2) Trade benefits both sides. You're just looking at the export side of the equation (jobs) while ignoring the import side of the equation (consumption). The people of the Maldives do benefit if they can have access to cheaper and a wider variety of goods which they can't produce. That's economics 101. How else do they spend the money they earned from tourism?

Moreover they produce pretty much nothing except fishes. What's bad with having cheaper goods when there's even no domestic industry facing competition? 'Loss' of foreign currency?

You have to understand the whole point of earning money is to spend it. There's no point in accumulating money without spending it as your real standard of living doesn't improve. They will continue to have jobs generated from tourism with the FTA while having access to more goods, which means their purchasing power and hence standard of living will improve.

 

[Viet]

1) FTA isn't just about trading of goods, it's also about the trading of services which tourism is a part of.

2) Trade benefits both sides. You're just looking at the export side of the equation (jobs) while ignoring the import side of the equation (consumption). The people of the Maldives do benefit if they can have access to cheaper and a wider variety of goods which they can't produce. That's economics 101. How else do they spend the money they earned from tourism?

Moreover they produce pretty much nothing except fishes. What's bad with having cheaper goods when there's even no domestic industry facing competition? 'Loss' of foreign currency?

You have to understand the whole point of earning money is to spend it. There's no point in accumulating money without spending it as your real standard of living doesn't improve. They will continue to have jobs generated from tourism with the FTA while having access to more goods, which means their purchasing power and hence standard of living will improve.

Fta is basically an agreement between two parties or multiple entities. As such, Fta can include everything or exclude certain unwanted things. What’s the point of Fta between China and Maldives on products when China produces everything while Maldives nothing? Services such as tourism are different things. But the Maldives don’t need Fta on tourism. What is the point for Fta on tourism?

Fta benefits Chinese manufacturing only because the pact gives Chinese companies easy access to the Maldives market. Other countries without Fta are losers.

I doubt China products are cheaper and better than other stuffs from other countries. In opposite, as China dominance is great thanks Fta, Chinese businesses can increase prices without fearing any competition.

That’s the real economic 1 and 1.

 

[Mista]

Fta benefits Chinese manufacturing only because the pact gives Chinese companies easy access to the Maldives market.

The people of the Maldives don't benefit?

Other countries without Fta are losers.

We are talking about the interest of the Maldives here, not other countries.

In opposite, as China dominance is great thanks Fta, Chinese businesses can increase prices without fearing any competition.

Then they should sign more FTAs with other countries as well.

You're making no sense here. How would China increase prices without fearing any competition, unless it's unique products they are making? If they increase the price and the people don't find it worth the value, they will just not buy it. The people will judge for themselves whether it's worth the value. Without the FTA you're just cutting the choices the people can make.

 

[Viet]

The people of the Maldives don't benefit?



We are talking about the interest of the Maldives here, not other countries.



Then they should sign more FTAs with other countries as well.

You're making no sense here. How would China increase prices without fearing any competition, unless it's unique products they are making? If they increase the price and the people don't find it worth the value, they will just not buy it. The people will judge for themselves whether it's worth the value. Without the FTA you're just cutting the choices the people can make.

Ok I give you one example. Vietnam and Singapore sign a Fta on coffee. With a fine clause: Singapore promises to impose high tariff on other countries imports. A good deal for Vietnam because we are the second largest coffee producer of the world, while Singapore production of coffee is probably one cup of coffee. According to your logic it is a win win situation.

 

[TheTruth]

You are right, buddy.

Correct 100%.

Technically China isn't wrong from a business perspective.

None of your assertions can be supported by facts.

The Maldives buy less than $300,000 from China while import more than $300 million?

Wow, calling it as looting is an understatement.

Are you stupid? Tourism is not counted in merchandise trade. 300,000 Chinese tourists visit the Maldives each year and Chinese tourists spend far more money than anyone else, usually from $5,000 to $10,000. The Chinese tourists spend at least 1 billion in the Maldives each year.

 

[Mohrenn]

Chinese investment and loans are good for countries, the western equivalent to that are a billion times worse in every way for anyone who has taken the time to learn about the topic.
The Maldives elections were manipulated by the Indian government and the new Maldives government is more loyal to India than to the Maldives.

Nothing worrying tho, what's important is the trend, not the little bumps on the road.

 

[nahtanbob]

Arrivals by country
Most visitors arriving to the Maldives on short term basis, were from the following countries of nationality:

Foreign tourist arrivals
Rank Country 2017 2016 2015 2014 2013 2012 2011
1 China 306,530 324,326 359,514 363,626 331,719 229,550 198,655
2 Germany 112,109 106,381 105,132 98,328 93,598 98,351 90,517
3 United Kingdom 103,977 101,843 92,775 88,704 85,869 91,776 104,508
4 Italy 88,848 71,202 65,616 57,862 57,854 62,782 83,328
5 India 83,019 66,955 52,368 45,587 38,014 31,721 30,978
6 Russia 61,931 46,522 44,323 66,308 76,479 66,378 63,936
7 France 42,365 40,487 42,024 50,656 54,328 56,775 59,694
8 Japan 41,133 39,894 39,244 38,817 39,463 36,438 35,782
9 United States 39,180 32,589 29,308 25,641 20,034 16,049 14,490
10 South Korea 34,808 29,580 33,001 34,896 30,306 23,933 25,285
Total 1,389,542 1,286,135 1,234,248 1,204,857 1,125,202 958,027 931,333

Is tourism a big part of this country's economy?

how many $$$ does your Chinese tourist spend compared to Western tourist ?
Chinese probably stay in Chinese owned resort, fly in Chinese national airline and eat in Chinese owned restaurant

 

[Brainsucker]

how many $$$ does your Chinese tourist spend compared to Western tourist ?
Chinese probably stay in Chinese owned resort, fly in Chinese national airline and eat in Chinese owned restaurant

Do you have the proof for what you said? Or it just an assumption?

 

[Viva_Viet]

No, it is a prejudice.

But thats true for Cnese tourist in VN.

--------'

Most of the stores are owned by Vietnamese nationals but are actually operated by Chinese investors, and their operations are very hard for authorities to control, the official explained.

The stores are associated with travel agencies, and the sales revenue they make is split between them.

Jewelry, blankets, mattresses and other products are sold at these “Chinese customers only” stores for prices a few times higher than the market rate, said the official. These products are the main source of income for “zero dollar” tours.

15 of these stores were closed in March 2017 after the PM asked Quang Ninh Province to verify press reports of low service quality. The media calls them “secret stores” since they are always packed with Chinese tourists and Vietnamese locals are not allowed in.

Vietnam is not the only country where “zero dollar” tours are being operated in. Each year, Thailand loses $9 billion due to this kind of tourism, said Sansern Keawkamnerd, a spokeperson for the Thailand Government Office, in February last year.

Visitors on these tours are often pressured to buy goods, and can even be assaulted they object, SCMPreported in January.
https://www.google.com.vn/amp/s/amp...nto-vietnam-on-zero-dollar-tours-3729103.html

 

[Jlaw]

how many $$$ does your Chinese tourist spend compared to Western tourist ?
Chinese probably stay in Chinese owned resort, fly in Chinese national airline and eat in Chinese owned restaurant

More than American tourists on average. Most chinese use money as payment in foreign countries that doesnt take alipay, WeChat pay thus its not tracked. Except for business people the average American are too poor to spend alot of money. That's why they stay in hostels and one star hotels. On YouTube you can see many White foreigners asking how much to live and retire in Thailand, Vietnam, cuz when your not financially secured even a $30 USD/ night motel is expensive to average Americans.

 

[Viet]

None of your assertions can be supported by facts.

Are you stupid? Tourism is not counted in merchandise trade. 300,000 Chinese tourists visit the Maldives each year and Chinese tourists spend far more money than anyone else, usually from $5,000 to $10,000. The Chinese tourists spend at least 1 billion in the Maldives each year.

So will chinese tourists stop visiting the Maldives after the country cancels Fta with China?

You are the one that is stupid.

 

[nahtanbob]

No, it is a prejudice.

I have paid close attention to chinese in malaysia
that is how they operate. is something wrong with it ? not really unless you are non-Chinese

More than American tourists on average. Most chinese use money as payment in foreign countries that doesnt take alipay, WeChat pay thus its not tracked. Except for business people the average American are too poor to spend alot of money. That's why they stay in hostels and one star hotels. On YouTube you can see many White foreigners asking how much to live and retire in Thailand, Vietnam, cuz when your not financially secured even a $30 USD/ night motel is expensive to average Americans.

please look up average price of hotel room in san francisco or los angeles
most of the tourists in these cities are americans