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

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

23-man shortlist for next six Hall of Fame inductees

Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.

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How being social media savvy can improve your well being

Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.

As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.

Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.

Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.

Torrena said that “most people believe that dieting and keeping fit is boring”.

However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.

“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.

People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5