'China's Growing Military Muscle: A Looming Threat." Was this a placard held by Japanese nationalists? The title of a right-wing American think tank report? The work of Taiwanese independence advocates, perhaps?
Wrong on all counts. This headline appeared on the normally sober, generally pacifist website of America's National Public Radio, prompted by the unsurprising news that China is near completion of its first aircraft carrier.
China confirmed earlier this month what has been blatantly obvious for at least a decade now: Beijing plans to re-launch a Soviet-era relic, the never-completed medium-carrier Varyag, as the very first aircraft carrier in the Chinese fleet.
In the era of Google Earth, the launching of a Chinese aircraft carrier was going to be a hard secret to keep. Yet it has nonetheless been the occasion for the latest round of hand-wringing in the United States, where fears of "declinism", soaring national debt and the onset of strategic paranoia is casting a shadow on almost any economic or military development outside its borders.
This may be predictable, but the impending launch of a Chinese aircraft carrier should hardly cause palpitations in Washington. The Admiral Kuznetsov class vessel, even after the extensive refit China has mounted, falls far short of anything operated by the US Navy. The US currently operates 11 super carriers, most of the Nimitz class, not to mention a decent collection of slightly older Forrestal and Kitty Hawk vessels, which have been retired but all of which put the Soviet ships to shame.
More to the point, China's carrier — whatever its capabilities — hardly fits China's military strategy, which focuses on area denial (increasingly on display amid a rise in tension in the South China Sea, for instance). China has made great strides in deploying sophisticated anti-ship missiles that could conceivably threaten an American carrier. As the US Naval Institute has been reporting for years, American Seventh Fleet commanders worry far more about Chinese missile developments than any challenge from China's fleet.
Anyone imagining that China's naval military academies are war-gaming Midway-like scenarios is completely paranoid. Indeed, the city of Newport, Rhode Island, home to the decommissioned 1950s-era giants USS Forrestal and USS Saratoga, has more potential naval air power lying around dormant than China, Russia and India have combined. In fact, most of the ships currently classified as carriers by Jane's Defence can only operate helicopters and short take-off and landing aircraft, a serious disadvantage in terms of performance and flexibility.
Age is another issue. India's carrier, INS Viraat, for instance, was built for the Royal Navy in 1959. It served as HMS Hermes, notably the flagship of the Royal Navy's Falklands campaign in 1982, before being sold to India in 1985. Brazil's carrier, Sao Paulo, is only a bit less decrepit, having been launched as the French Navy's Foch in 1963, and sold to Brazil in the early 1990s.
Despite all of this evidence, anything involving China these days elicits an unreasonable response in Washington. US war colleges turn out paper after paper on the threats posed by China's "blue water" naval ambitions, and some defence analysts believe the US has happily capitalised on China's recent bullying of its smaller neighbours in the South China Sea by strengthening defence ties to Indonesia, Vietnam, the Philippines and Japan. (Talks between the US and China planned for yesterday were called in part to defuse tensions over these hot spots).
Indeed, the appearance of a Chinese carrier isn't all bad from a US admiral's standpoint. Many see this as an opportunity to shore up procurement budgets. Already the US Navy has been on the offensive, touting its far-flung ring of Pacific Rim bases as the ultimate guarantee of stability in the region - warning Congress against the budget-cutting instincts of outgoing Defence Secretary Robert Gates.
Northrop Grumman and a legion of defence subcontractors will welcome the Chinese flat top. The company's Newport News shipyard is busy building the first of the newest class of super carriers, the US$5.1 billion (Dh18.7bn) USS Gerald R Ford, in Virginia. As a class, it's more of an incremental modernisation of the Nimitz class than a leap forward — much the same compliment of aircraft, a slightly reconfigured deck, new catapult systems and improvements in various defensive weapons. Compared to a 30 year old Soviet hulk, though, it's quite an awesome weapon.
Whether there will be many more Ford class ships is a debate that needs to be had. Advances in pilotless aircraft raise real questions about the wisdom of putting 90 combat aircraft on a ship. Advances in anti-shipping missiles raise survivability questions for the great carriers, as do the new generation of torpedoes.
These all are valuable debates. So, too, are questions about the extent to which post-war restrictions on Japan's navy should stay in place. For that matter, if American politicians are determined to fret about the Chinese, why not worry about Beijing's true weapon - the sovereign wealth funds that hold potentially destabilising percentages of US national debt? One has to wonder whether China would prefer Washington to keep overspending on defence.
Bottom line: don't get worked up about the alleged "blue water navy" China is building. Partisans of one kind or another may deploy Red Scare tactics about the carrier, but there are an awful lot of better things for Americans - and their allies - to worry about.
Michael Moran is a geostrategy analyst for Roubini Global Economics based in New York. His book, Managing Down: The Global Risks and Human Costs of American Decline, will be published by Palgrave-Macmillan in 2012.
More from Neighbourhood Watch:
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MATCH INFO
Champions League quarter-final, first leg
Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
FIXTURES
All kick-off times UAE ( 4 GMT)
Brackets denote aggregate score
Tuesday:
Roma (1) v Shakhtar Donetsk (2), 11.45pm
Manchester United (0) v Sevilla (0), 11.45pm
Wednesday:
Besiktas (0) v Bayern Munich (5), 9pm
Barcelona (1) v Chelsea (1), 11.45pm
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
The specs: 2018 Chevrolet Equinox
Price, base / as tested: Dh76,900 / Dh110,900
Engine: 2.0L, turbocharged in-line four-cylinder
Gearbox: Nine-speed automatic
Power: 252hp @ 5,500rpm
Torque: Torque: 352Nm @ 2,500rpm
Fuel economy, combined: 8.5L / 100km
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
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Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
Five expert hiking tips
- Always check the weather forecast before setting off
- Make sure you have plenty of water
- Set off early to avoid sudden weather changes in the afternoon
- Wear appropriate clothing and footwear
- Take your litter home with you
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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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.”
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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MATCH INFO
First Test at Barbados
West Indies won by 381 runs
Second Test at Antigua
West Indies won by 10 wickets
Third Test at St Lucia
February 9-13
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
COMPANY%20PROFILE
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Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
More on animal trafficking
More on animal trafficking
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The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
Company%20Profile
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If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
STAY%2C%20DAUGHTER
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Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5