China's Vice President recently commemorated the 50th anniversary of a visit to China by Henry Kissinger. AP
China's Vice President recently commemorated the 50th anniversary of a visit to China by Henry Kissinger. AP
China's Vice President recently commemorated the 50th anniversary of a visit to China by Henry Kissinger. AP
China's Vice President recently commemorated the 50th anniversary of a visit to China by Henry Kissinger. AP


After 50 years of talking, has the conversation between the US and China changed?


  • English
  • Arabic

July 14, 2021

Fifty years ago this month Henry Kissinger, the then US national security adviser, made a trip to China for three days of meetings with Zhou Enlai, the premier. This paved the way for then president Richard Nixon’s historic and celebrated official visit the following year, which set in motion the normalisation of relations between America and the People’s Republic.

For a long time this was seen as a great triumph, and ensured that whatever Nixon’s domestic troubles, this diplomatic coup still lent him, and Dr Kissinger, the aura of a great statesman on the world stage. Last Friday in Beijing, China’s Vice President, Wang Qishan, honoured Dr Kissinger at a special event to commemorate the talks.

In recent years, though, a new narrative has grown that Nixon and Dr Kissinger’s strategy essentially failed in the long run. As the then US secretary of state Mike Pompeo put it in a speech – at the Nixon Presidential Library, no less – last year: “As time went on, American policymakers increasingly presumed that as China became more prosperous, it would open up, it would become freer at home, and indeed present less of a threat abroad, it’d be friendlier… But the kind of engagement we have been pursuing has not brought the kind of change inside of China that president Nixon had hoped to induce… Today China is increasingly authoritarian at home, and more aggressive in its hostility to freedom everywhere else.”

“We cannot repeat the mistakes of these past years,” said Mr Pompeo, a Republican, who made it clear that he had no time for “dialogue for dialogue’s sake”. The choice is presented as stark: either continue with the old policy of engagement, which China hawks think has failed, or be confrontational and seek to change the country.

In this worldview, European politicians such as Armin Laschet, the leader of Germany’s Christian Democratic Union and a leading candidate to succeed Angela Merkel as chancellor, are cast almost as appeasers for insisting on the importance of dialogue with both Russia and China. In fact, I think Mr Laschet is exactly right. As he correctly pointed out in a recent interview: “Even in the coldest of cold wars there was always economic exchange and a dialogue between civil societies… Diplomacy needs as many words as it can find.”

So dialogue, of whatever kind, is essential. But Mr Pompeo’s framing is wrong on a second count, too. For the whole idea that the sole aim of the US opening up to China was that it would inevitably end up similar to a western liberal democracy is false.

China's economic growth has not drawn it to western-style democracy, as many Americans thought it would. AFP
China's economic growth has not drawn it to western-style democracy, as many Americans thought it would. AFP
Dialogue, of whatever kind, is essential

To begin with, one of the main goals was very of its time – to tilt the global balance of power and military might against the Soviet Union. Secondly, Dr Kissinger was always realistic about what changes might accompany economic growth. He has said that “our hope was that the values of the two sides would come closer together”. But in a famous 1968 essay, “Central Issues of American Foreign Policy”, Dr Kissinger wrote: “The dominant American view about political structure has been that it will follow, more or less automatically, upon economic progress, and that it will take the form of constitutional democracy. Both assumptions are subject to serious question."

Further, he went on to point out that in many countries “the system of government which brought about industrialisation, whether popular or authoritarian, has tended to be confirmed rather than radically changed by this achievement". That is arguably just what has happened as China has grown wealthy.

There are many other ways in which Dr Kissinger’s approach, both then and now, would be a much better guide to how to proceed than the sabre-rattling, denunciatory style of the new cold warriors.

Take the former US ambassador to India Robert Blackwill’s description of Dr Kissinger’s talks with Zhou: “They were high level, they were intense, they were private, they were mutually respectful, they accepted each other’s value of governance, and they were dedicated to problem solving. That’s not a bad formula for today.”

I agree. But then I do not accept Mr Pompeo’s definition of what it means for engagement and dialogue between China and the US-led West to be successful. He seems to desire total capitulation on the part of Beijing. Dr Kissinger puts it differently. “Our problem is not to find allies around the world with which to confront China,” he said at the Wilson Centre in Washington in 2018. “What we need is concepts by which we can work together to set limits to conflicts… The issue is not victory, here. The issue is continuity, and world order, and world justice, and to see whether our two countries can find a way of talking about it to each other.”

In 2020, at the Council on Foreign Relations, he outlined another eminently sensible goal: “I think the outcome of our relationship should be a concept of transpacific destiny in which we all participate.”

This is what Kissinger-style engagement can help bring about, and at a time of high tensions and warnings of military conflict it should be evident that dialogue is never just “for dialogue’s sake”, as Mr Pompeo cynically said. It is the path that leads away from war and all the devastation that would accompany it. The point is so obvious that it should barely need making, and is universally applicable. As an Irish friend said to me recently, in reference to the bombs and sectarian violence during the decades of the Troubles: "We know on this island what happens when people don't talk to each other."

Dr Kissinger worries what might happen if western countries stop talking properly to China. They are shouting loudly enough as it is, with US President Joe Biden’s Indo-Pacific overseer Kurt Campbell stating in May that "I think we all acknowledge that the period that was broadly described as 'engagement' has come to an end".

This is foolish. Dialogue and engagement are not weaknesses but are vital for a harmonious future. Never mind the revisionists. Henry Kissinger was right in 1971 – and he’s still right today.

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

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

'Laal Kaptaan'

Director: Navdeep Singh

Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain

Rating: 2/5

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Walls

Louis Tomlinson

3 out of 5 stars

(Syco Music/Arista Records)

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

'Worse than a prison sentence'

Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now

All or Nothing

Amazon Prime

Four stars

The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
The Abu Dhabi Awards explained:

What are the awards? They honour anyone who has made a contribution to life in Abu Dhabi.

Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.

When do nominations close? The process concludes on December 31.

How do I nominate someone? Through the website.

When is the ceremony? The awards event will take place early next year.

Updated: July 14, 2021, 8:00 AM