The Commanding Officer of HMAS Parramatta, Commander Anita Nemarich, waves at USS America during officer of the watch manoeuvres in the South China Sea, in this April 18, 2020 handout photo. Australia Department Of Defence/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT MUST CREDIT AUSTRALIA DEPARTMENT OF DEFENCE
The Commanding Officer of HMAS Parramatta, Commander Anita Nemarich, waves at USS America during officer of the watch manoeuvres in the South China Sea, in this April 18, 2020 handout photo. Australia Department Of Defence/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT MUST CREDIT AUSTRALIA DEPARTMENT OF DEFENCE
The Commanding Officer of HMAS Parramatta, Commander Anita Nemarich, waves at USS America during officer of the watch manoeuvres in the South China Sea, in this April 18, 2020 handout photo. Australia Department Of Defence/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT MUST CREDIT AUSTRALIA DEPARTMENT OF DEFENCE
The Commanding Officer of HMAS Parramatta, Commander Anita Nemarich, waves at USS America during officer of the watch manoeuvres in the South China Sea, in this April 18, 2020 handout photo. Australia

How the US and China can get along in the Indo-Pacific


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What's in a name? Sometimes quite a lot. For many years, democracy advocates said that calling Burma Myanmar was to confer legitimacy on the military regime that changed the country's title in 1989. Whether you refer to Northern Ireland's second city as Derry or Londonderry is often an indication of either Irish nationalist or British unionist sympathies. And so the fact that the term Asia-Pacific is gradually being replaced by a newer name, the Indo-Pacific, is not just a matter of geography (although it is true that the former does not include the Indian subcontinent and the latter does).

This change matters greatly. It represents a significant shift in the contest for influence between China and the US, and as such it is of importance to far more than just foreign policy analysts at think tanks and universities.

Members of 'the quad'

Donald Trump's America, Shinzo Abe's Japan, and Narendra Modi's India are members of 'the quad'. Bloomberg
Donald Trump's America, Shinzo Abe's Japan, and Narendra Modi's India are members of 'the quad'. Bloomberg

One of the reasons why is because the new name is very much associated with "the quad" – the quadrilateral meetings between America, Australia, India and Japan, which began in 2007, and which instantly raised hackles in China. Some suggested the quad could be the beginning of an Asian Nato; Chinese authorities, wary that they were being ganged up on, issued formal diplomatic protests to the four countries in advance of the first meeting.

Partly due to leadership changes, the first quad swiftly petered out. But the idea was revived 10 years later, and in November 2017 officials from the quad met "to discuss a shared vision for increased prosperity and security in the Indo-Pacific region and to work together to ensure it remains free and open", as an Australian government statement put it. They "committed to continuing quadrilateral discussions and deepening co-operation on the basis of shared values and principles" and to "upholding the rules-based order in the Indo-Pacific and respect for international law".

Many felt you did not have to read very closely between the lines to conclude that this was another US-led initiative aimed at containing China. At the same time, however, there did not appear to be any high-level meetings between the quad. And the whole concept of the Indo-Pacific seemed very vague. As late as November 2018, I attended a conference in Kuala Lumpur after which I messaged a friend: “Spent two hours talking about the Indo-Pacific this afternoon. Clear as mud.”

China rising in South China Sea

In this 2018 file photo, Chinese President Xi Jinping, left, speaks after he reviewed the PLA Navy fleet in the South China Sea. AP Photo
In this 2018 file photo, Chinese President Xi Jinping, left, speaks after he reviewed the PLA Navy fleet in the South China Sea. AP Photo

The 10-member Association of Southeast Asian Nations (Asean) retained the Asia-Pacific as its lens. In October that same year, New Zealand's deputy foreign minister Ben King said that "the term Indo‑Pacific may not resonate" in his country as yet.

But the US, and Secretary of State Mike Pompeo in particular, continued to promote both the term and the strategy. The US Department of Defence issued an Indo-Pacific report in December 2018, and last November the State Department produced its "shared vision" of a "free and open Indo-Pacific". In the security section of that document, the authors did not hold back. They described China's maritime claims in the South China Sea, for instance, as "preposterous… unfounded, unlawful, and unreasonable… without legal, historic, or geographic merit".

The Hague's 2017 ruling

The report also noted that “in September 2019, the first ministerial-level meeting of the United States, Australia, India, and Japan at the Quadrilateral Consultations marked a new milestone for our diplomatic engagement in the region".

Since then the quad has become even more active. It has held several ministerial meetings to co-ordinate over the coronavirus pandemic, with the additional participation of Vietnam, South Korea and New Zealand – none of them particularly close to China.

Beijing's suspicions of the whole Indo-Pacific concept might, then, appear to have been confirmed. But there was another development last year that may not make the term one which China will ever like, but at least make it less objectionable.

Asean's solution

A video conference on Covid-19 between Asean foreign ministers and US Secretary of State Mike Pompeo last month. AP Photo
A video conference on Covid-19 between Asean foreign ministers and US Secretary of State Mike Pompeo last month. AP Photo

And that was that after months of deliberation, Asean adopted it, producing in June an “Asean Outlook on the Indo-Pacific” inspired by Indonesia, which has long had its own ideas about an “Indo-Pacific” formulation; and they are quite different to America’s.

As the distinguished academic Amitav Acharya put it: “The United States wants a ‘free’ and ‘open’ Indo-Pacific, echoing the wording used by Japan’s Prime Minister Shinzo Abe, but with a more overt military-strategic orientation. In comparison, Indonesia seeks an ‘open’ and ‘inclusive’ Indo-Pacific. The United States does not use ‘inclusive’ while Indonesia does not use ‘free’.

"The latter’s stress on 'inclusivity'," he wrote, “implies that its policy is not meant to isolate China.”

The virus of geopolitics

The term is here to stay – so much so that when Malaysia’s Institute of Strategic and International Studies held its flagship Asia-Pacific Roundtable last year, its chairman was asked if he would change the annual conference’s title to Indo-Pacific Roundtable. (The answer was no.) But what kind of region this new name implies is contested.

What both the Asean and the US visions agree on is the emphasis on trade. The measures outlined in the State Department report remind the reader of just how active America is and has been in providing assistance to the region in terms of infrastructure, developing energy resources, training and investment – far more than is often realised – and some hope that this broad partnership can be a viable alternative and complement to China's Belt and Road Initiative.

Pompeo pushing China

Mike Pompeo, U.S. secretary of state, second left, speaks as Mark Esper, U.S. Secretary of Defense, left, Marise Payne, Australia's foreign minister, second right, and Linda Reynolds, Australia's defense minister, listen during a news conference in Sydney, Australia, on Sunday, Aug. 4, 2019. Secretary of Defense Mark Esper said the U.S. is firmly against China's "destabilizing" behavior in the Indo-Pacific, and won't stand by while one country reshapes the region, continuing a war of words between the superpowers. Photographer: Brendon Thorne/Bloomberg
Mike Pompeo, U.S. secretary of state, second left, speaks as Mark Esper, U.S. Secretary of Defense, left, Marise Payne, Australia's foreign minister, second right, and Linda Reynolds, Australia's defense minister, listen during a news conference in Sydney, Australia, on Sunday, Aug. 4, 2019. Secretary of Defense Mark Esper said the U.S. is firmly against China's "destabilizing" behavior in the Indo-Pacific, and won't stand by while one country reshapes the region, continuing a war of words between the superpowers. Photographer: Brendon Thorne/Bloomberg

If Asean’s more neutral and inclusive approach dominates, says Thomas Daniel of Malaysia’s Institute, “we may not be able to get Chinese buy-in, but the hope is that we wouldn’t get Chinese opposition".

That has to be the best outcome. For when the world gets back to work again, integration in Asia is not going to stop, China is going to continue to rise and the US will remain deeply engaged in the region. The Indo-Pacific will inherit the challenges of its predecessor. The hope must be that Asean can persuade middle and emerging powers in this expanded theatre that consensus-seeking and conflict avoidance are the best ways to create the rising tide that will lift all boats.

Sholto Byrnes is a commentator and consultant in Kuala Lumpur and a corresponding fellow of the Erasmus Forum

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Polarised public

31% in UK say BBC is biased to left-wing views

19% in UK say BBC is biased to right-wing views

19% in UK say BBC is not biased at all

Source: YouGov

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Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)

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Winner Karaginsky, Tadhg O’Shea, Satish Seemar.

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Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.

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Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.

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Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

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Winner Bladesmith, Tadhg O’Shea, Satish Seemar.

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Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.

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A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

match info

Maratha Arabians 138-2

C Lynn 91*, A Lyth 20, B Laughlin 1-15

Team Abu Dhabi 114-3

L Wright 40*, L Malinga 0-13, M McClenaghan 1-17

Maratha Arabians won by 24 runs

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The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
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  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.