Kamala Harris and Donald Trump hold similar as well as contrasting views on America's approach towards East and South-East Asia. AP
Kamala Harris and Donald Trump hold similar as well as contrasting views on America's approach towards East and South-East Asia. AP
Kamala Harris and Donald Trump hold similar as well as contrasting views on America's approach towards East and South-East Asia. AP
Kamala Harris and Donald Trump hold similar as well as contrasting views on America's approach towards East and South-East Asia. AP


How Donald Trump or Kamala Harris could shape the future of East Asia


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August 29, 2024

With barely two months until the US presidential election, and an increasing view among both Democrats and Republicans that America must focus on what they term the Indo-Pacific, many are asking what either a Kamala Harris or Donald Trump White House would mean for East and South-East Asia.

On the economic front, it seems likely that America will continue to miss a key trick in its engagement with the region. The reason for this, as the former Bill Clinton administration official Steven Okun wrote this week, is: “Whoever wins, the US will not be returning to the world of free trade.” Both parties are concerned about the jobs America has lost to globalisation and the threat of Chinese exports to domestic industry. To deal with this, Mr Trump’s proposals have varied but have included putting 10 to 20 per cent tariffs on most imports, and 60 per cent on those from China.

The Harris campaign has called the plans a “Trump tax”, but a spokesperson for the Democratic candidate conceded that his boss would impose “targeted and strategic tariffs”. In any case, President Joe Biden has not only kept in place the China tariffs that Mr Trump raised when he was in office but suggested a whole load more on semiconductors, electric vehicles and their batteries, and other goods.

The question for us in the Asia-Pacific is who is more likely to support them: the democratic idealist, or the transactional realist?

The US remains outside Asia-Pacific trade agreements like the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, while China is in the former and has applied to join the latter. Mr Biden’s attempt to form a US-led pact – the Indo-Pacific Economic Framework for Prosperity – was never expected to amount to much, being a so-called “skinny” trade deal, but is now widely viewed as a bust. China’s Global Times could be expected to crow that it was “all talk, no real action, doomed to fail”, but the editorial board of Bloomberg also lambasted Mr Biden’s unwillingness to give the agreement any teeth as “bungling” that “jeopardises US global leadership”.

That’s not an overstatement. American administrations have consistently not grasped the fact that it is economic ties that will cement their place in the region. “Regardless of whether it’s Harris or Trump, paradoxically, the US will continue to walk away from trade while the rest of Asia embraces it,” said the Singaporean public intellectual and former diplomat Kishore Mahbubani. “Governments in the region led by China, India and Asean will continue their regional integration while the US sits on the sidelines.”

When it comes to security issues, there are significant differences between the two candidates. Ms Harris did not say a lot about foreign policy in her speech at the Democratic National Convention last week, but she did claim as Vice President to have “strengthened our alliances”, and said that as president “I will make sure … that America, not China, wins the competition for the 21st century”, and that she would not “cosy up to tyrants and dictators like Kim Jong-un”.

US President Donald Trump with China's President Xi Jinping in Beijing during pleasanter times in 2017. Reuters
US President Donald Trump with China's President Xi Jinping in Beijing during pleasanter times in 2017. Reuters

Although some have noted that Philip H Gordon, Ms Harris’s national security adviser, has been critical of US overreach in the past, the candidate herself sounds as convinced as Mr Biden that the world is divided between democracies and autocracies, and that her job will be to lead the former in what she called “the enduring struggle” between the two. There are dangers in this. A former official in the George W Bush White House has already called for her to “issue a formal, credible declaration of commitment to defend Taiwan” if China attempted reunification with even one of the smaller islands. This would upend decades of American “strategic ambiguity”, which has helped to keep the peace, and risk a catastrophic war.

Ms Harris’s declaration that she would spurn diplomatic efforts to open dialogue with the likes of North Korea’s Mr Kim has also been slated as “neoconservatism 101” in a commentary published by the bipartisan Quincy Institute for Responsible Statecraft. “Jaw-jaw is better than war-war, something anyone eyeing the presidency of the United States should have learned by now,” it concluded.

Mr Trump’s entourage and supporters include plenty of China hawks, such as his former national security adviser Robert O’Brien, and a potential future one, Elbridge Colby. But the former president’s own instincts are clearly to avoid US involvement in foreign wars, and he does not appear to share their prediction that conflict may be inevitable. In 2020, when still in office, he said about President Xi Jinping: “He’s for China, I’m for the US, but other than that, we love each other.”

Mr Trump’s concern is not democracy or human rights; it is trade and making sure that America gets what he feels is its due. In March, he said if Chinese car manufacturers “want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can. They can’t send Chinese workers over here, which they sometimes do. But if they want to do that, they’re welcome, right?”

Add to this Mr Trump’s unwillingness to publicly commit to defend Taiwan, and he may be the safer candidate for East and South-East Asia. I live in the region, in Malaysia, and I can say that many of us here don’t see two antagonistic blocs, democracies versus autocracies – because our neighbours have a variety of political systems, and we believe in sovereignty and the principle of non-interference.

We don’t want there to be a “competition for the 21st century” if that risks war, because we fear it will be fought on our doorstep. We don’t want kindling to be readied for flashpoints, be it Taiwan or the risky encounters between China and the Philippines in the South China Sea. We need compromises and solutions that enable all to save face – and a US that is finally ready to participate in meaningful trade agreements.

The latter may be unlikely under either Ms Harris or Mr Trump. As for face-saving “beautiful” compromises, the question for us in the Asia-Pacific is who is more likely to support them: the democratic idealist, or the transactional realist? The American people will make the decision, but we will face the consequences.

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

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

 

 

The biog

Favourite car: Ferrari

Likes the colour: Black

Best movie: Avatar

Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy

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UAE tour of the Netherlands

UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

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.

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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
At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

Updated: August 29, 2024, 10:17 AM