TAIPEI/WASHINGTON // China has deployed an advanced surface-to-air missile system to one of the disputed islands it controls in the South China Sea, Taiwan and US officials said.
Maj Gen David Lo, the Taiwan defence ministry spokesman, said yesterday the missile batteries had been set up on Woody Island. The island is part of the Paracels chain, under Chinese control for more than 40 years but also claimed by Taiwan and Vietnam.
A US defence official also confirmed the “apparent deployment” of the missiles reported by Fox News.
China’s foreign minister said the reports were created by “certain western media” that should focus more on China’s building of lighthouses to improve shipping safety in the region.
“As for the limited and necessary self-defence facilities that China has built on islands and reefs we have people stationed on, this is consistent with the right to self-protection that China is entitled to under international law so there should be no question about it,” Wang Yi said.
China claims most of the South China Sea, through which more than US$5 trillion in global trade passes every year, and has been building runways and other infrastructure on artificial islands to bolster its title.
The United States has said it will continue conducting “freedom of navigation patrols” by ships and aircraft to assure unimpeded passage through the region, where Vietnam, Malaysia, Brunei, the Philippines and Taiwan have rival claims.
Admiral Harry Harris, the commander of the US Pacific command, said the deployment of missiles to the Paracels would not be a surprise but would be a concern, and be contrary to China’s pledge not to militarise the region.
“We will conduct more, and more complex, freedom of navigation operations as time goes on in the South China Sea,” Adm Harris said. “We have no intention of stopping.”
News of the missile deployment came as president Barack Obama and leaders of the Association of South East Asian Nations concluded a summit in California, where they discussed the need to ease tensions in the South China Sea but did not include specific mention of China’s assertive pursuit of its claims there.
China’s increasing military presence in the disputed sea could effectively lead to a Beijing-controlled air defence zone, analysts said.
“[The missile deployment] reinforces the view that China intends to exert growing control in these international waters, including potentially by declaring an Air Defence Identification Zone,” said Rory Medcalf, head of the National Security College at the Australian National University.
Mira Rapp-Hooper, a South China Sea expert from the Centre for a New American Security, said it was not the first time that China has sent such weapons to the Paracels.
“I do think surface-to-air missiles are a considerable development,” she said. “If they have been deployed they are probably China’s effort to signal a response to freedom-of navigation operations, but I don’t think it is a totally unprecedented deployment.”
A US navy destroyer sailed within 12 nautical miles of Triton Island in the Paracels last month, a move China condemned as provocative.
China last month said it would not seek militarisation of its South China Sea islands and reefs, but that did not mean it would not set up defences.
“Woody Island belongs to China,” said Ni Lexiong, a naval expert at the Shanghai University of Political Science and Law.
“Deploying surface-to-air missiles on our territory is completely within the scope of our sovereign rights. We have sovereignty there, so we can choose whether to militarise it.”
Taiwan President-elect Tsai Ing-wen said tensions were now higher in the region.
“We urge all parties to work on the situation based on principles of peaceful solution and self-control,” Ms Tsai said.
Vietnam’s foreign ministry did not respond to requests for comment. But in a rare move, the country’s prime minister on Monday pressed Mr Obama for a greater US role in preventing militarisation and island-building in the South China Sea.
Images from civilian satellite company ImageSat International show two batteries of eight surface-to-air missile launchers on Woody Island, as well as a radar system, Fox News said.
The missiles arrived over the past week and, according to a US official, appeared to show the HQ-9 air defence system, which has a range of 200 kilometres and would pose a threat to any aircraft flying close by, the report said.
In November, two US B52 bombers flew near artificial Chinese-built islands in the Spratly Islands.
Asked about the report, Bill Urban, a Pentagon spokesman, said: “While I cannot comment on matters related to intelligence, we do watch these matters very closely.”
* Reuters
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UAE currency: the story behind the money in your pockets
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White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
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Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
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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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