China continues to extend its borders in the South China Sea – a global trade and maritime hub – in a way that no power has done before elsewhere. Reuters
China continues to extend its borders in the South China Sea – a global trade and maritime hub – in a way that no power has done before elsewhere. Reuters

Beijing on a collision course as it stirs up the South China Sea



China’s recent acknowledgement that it is establishing its first overseas military base in the Indian Ocean rim nation of Djibouti, on the Horn of Africa, represents a transformative moment in its quest for supremacy at sea. The country’s growing interest in the Indian Ocean – the bridge between Asia and Europe – draws strength from its more assertive push for dominance in the adjacent South China Sea.

Indeed, Beijing appears to be using the South China Sea as a testing ground for changing the Asian geopolitical map. To advance its geostrategic interests, China is assertively using geoeconomic tools, such as the Maritime Silk Road and the Beijing-based Asian Infrastructure Investment Bank.

The Maritime Silk Road – designed to link China’s eastern coast with the Indian Ocean region and the Middle East – presents itself as a benign-sounding new banner for the country’s “string of pearls” strategy.

Meanwhile, without incurring any international costs, China continues to extend its borders in the South China Sea – a global trade and maritime hub – in a way that no power has done before elsewhere. Its modus operandi involves creating artificial islands and claiming sovereignty over them and their surrounding waters. In just a little over two years, it has built seven islands in its attempt to annex a strategically crucial corridor through which half of the world’s annual merchant fleet passes.

Let us be clear: the South China Sea is critical to the contest for influence in the Indian Ocean and the larger Indo-Pacific region. China's consolidation of power in the sea is encouraging it to play an important role in the Indian Ocean, where it is seeking to chip away at India's natural geographic advantage.

The speed and scale of China’s creation of islands and military infrastructure have astounded the world. According to a Pentagon report in August, China in 20 months reclaimed 17 times more land than all the other claimant states combined over the past 40 years. Yet its expansions have met little international response other than rhetoric.

The US has focused its concern mainly on safeguarding freedom of navigation through the South China Sea, not on ratcheting up pressure on China to stop it from altering the status quo in its favour. In fact, the US – as elsewhere in Asia, including the Himalayas and the East China Sea – has refused to take sides in the territorial disputes between China and its neighbours in the South China Sea.

No less significant is the fact that Barack Obama’s administration has hesitated to provide strategic heft to its much-publicised “pivot” to Asia. Even the modest measure announced in 2011 to permanently rotate up to 2,500 US Marines through Darwin, Australia, is yet to be fully implemented. Indeed, to Washington’s discomfiture, a Chinese company with links to the People’s Liberation Army – Landbridge Group – recently acquired the right to operate Darwin port under a 99-year lease.

Asean countries’ reluctance to take a unified stance to stop Beijing – their largest trade partner – from doing what it pleases has also aided Beijing’s strategy.

Emboldened by international inaction and a series of crises that have helped divert global attention, Beijing has been feverishly turning low-tide elevations into small islands by dredging seabed material and then dumping it using pipelines and barges. In the process, it has been creating new “facts on the ground” for enforcing an air defence identification zone without having to declare one.

Against this background, the South China Sea has emerged as the symbolic centre of the international maritime challenges of the 21st century. The region is important even for distant countries, because what happens there will impinge on Asian power equilibrium and international maritime security.

Developments in the South China Sea – the world’s newest maritime hot spot – carry the potential of upending even the current liberal world order by permitting brute power to trump rules.

If Asean states and other powers in Asia do not evolve a common strategy to deal with the South China Sea dispute within an Asian framework, the issue will be left to China and the US to address through a great-power modus vivendi sidelining the interests of the smaller disputants. The common strategy must give meaning to the recent appeal of Narendra Modi and Shinzo Abe, the Indian and Japanese prime ministers to all countries to “avoid unilateral actions,” given the “critical importance of the sea lanes in the South China Sea”.

The sea’s centrality to the wider geopolitics, balance of power, and maritime order should induce like-minded states to work closely together to positively shape developments, including by ensuring that continued unilateralism is not cost-free. Only sustained pressure from neighbours can persuade Beijing that its future lies in cooperation and not confrontation.

Failure to exert such pressure could create a systemic risk to Asian stability and prosperity.

Brahma Chellaney is the author of nine books, including, most recently, Water, Peace, and War

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Director: Alexander Payne

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Rating: 4.5/5

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Torque: 230Nm

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On sale: Now

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Produced: Vidhu Vinod Chopra, Rajkumar Hirani

Director: Rajkumar Hirani

Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani

Rating: 3.5 stars

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  • By 2040, global cancer cases are on track to reach 30 million 
  • 70 per cent of cancer deaths occur in low and middle-income countries 
  • This rate is expected to increase to 75 per cent by 2030 
  • At least one third of common cancers are preventable 
  • Genetic mutations play a role in 5 per cent to 10 per cent of cancers 
  • Up to 3.7 million lives could be saved annually by implementing the right health
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  • The total annual economic cost of cancer is $1.16 trillion

 

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Streaming on: ADtv

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Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

Brief scoreline:

Burnley 3

Barnes 63', 70', Berg Gudmundsson 75'

Southampton 3

Man of the match

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Indoor Cricket World Cup Dubai 2017

Venue Insportz, Dubai; Admission Free

Fixtures - Open Men 2pm: India v New Zealand, Malaysia v UAE, Singapore v South Africa, Sri Lanka v England; 8pm: Australia v Singapore, India v Sri Lanka, England v Malaysia, New Zealand v South Africa

Fixtures - Open Women Noon: New Zealand v England, UAE v Australia; 6pm: England v South Africa, New Zealand v Australia

MATCH INFO

Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')

Leeds United 0 

Who is Allegra Stratton?

 

  • Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
  • Took up a public relations role for Chancellor Rishi Sunak in April 2020
  • In October 2020 she was hired to lead No 10’s planned daily televised press briefings
  • The idea was later scrapped and she was appointed spokeswoman for Cop26
  • Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
  • She has strong connections to the Conservative establishment
  • Mr Sunak served as best man at her 2011 wedding to Mr Forsyth

The Department of Culture and Tourism - Abu Dhabi’s Arabic Language Centre will mark International Women’s Day at the Bologna Children's Book Fair with the Abu Dhabi Translation Conference. Prolific Emirati author Noora Al Shammari, who has written eight books that feature in the Ministry of Education's curriculum, will appear in a session on Wednesday to discuss the challenges women face in getting their works translated.

Diriyah project at a glance

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- The Royal Diriyah Opera House is expected to be completed in four years
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- On completion in 2030, the Diriyah project is forecast to accommodate more than 100,000 people
- The $63.2 billion Diriyah project will contribute $7.2 billion to the kingdom’s GDP
- It will create more than 178,000 jobs and aims to attract more than 50 million visits a year
- About 2,000 people work for the Diriyah Company, with more than 86 per cent being Saudi citizens

Wenger's Arsenal reign in numbers

1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.

WandaVision

Starring: Elizabeth Olsen, Paul Bettany

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John Heminway, Knopff

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.”

Kill

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Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5