Relations between China and Japan are being severely tested after Japanese Prime Minister Sanae Takaichi suggested her country could become militarily involved if Beijing attempted reunification with Taiwan by force. The two countries summoned each other’s ambassadors, and 500,000 airline tickets were cancelled after China advised its citizens against travelling to Japan.
All imports of Japanese seafood to China are being banned, and the release of two Japanese anime films in China has also been suspended. Chinese state media have called Ms Takaichi’s words “dangerously provocative”. Various Chinese officials have said, as has President Xi Jinping before, that the reunification of China with what it views as the renegade province of Taiwan is “inevitable”.
There was a time when I might have differed from this view. But not now. And it is high time that other countries, mainly in the western orbit, accept once and for all the historical and legal facts: there is but one China, and Taiwan is a part of it.
I understand the sympathy for Taiwan in the US and Europe. Supporters there see today an island that looks at least partly in their image: a democracy with liberal and progressive values. But the notion that their support for the island’s continued separation – or even official independence – is underpinned by a consistent, justifiable principle falls apart under the slightest scrutiny, let alone even the smallest attempt to try to see China’s point of view.
It is Taiwan’s system of governance that means it deserves the West’s support, some say. What then to make of the 38 years from 1949 to 1987 when the island was under martial law, the period known as “the white terror”? That was clearly not the reason the US, in particular, worked so closely with Taiwan. So that argument fails.
Still, I accept that plenty feel that they should stand up for a separate Taiwan. The problem with feelings is that they hit a hard wall when they come up against the law. I may feel, for instance, that the island of Ireland should be reunited. But it would be quite wrong for that to happen – and would never happen – without a proper legal and constitutional process. And Taiwan has no more right to declare independence or maintain a separate status from mainland China than would Texas from the US.
Plenty of people feel that they should stand up for a separate Taiwan. The problem with feelings is that they hit a hard wall when they come up against the law
Talk of independence is, in any case, a bit of a red herring. True, the current Taiwanese President Lai Ching-te may have stated “we are an independent country” at a rally in June, but he is something of an outlier. Polls have consistently shown that over 80 per cent of Taiwanese prefer maintaining the status quo. They know that an official declaration of independence would be a red line for Beijing.
Neither was it on the minds of Chiang Kai-shek and the nationalist Kuomintang (KMT) forces, when they retreated to Taiwan in 1949 after losing the civil war to the Chinese Communist Party. Far from thinking they had relocated to a different country, they maintained the fiction that they were the official government of the whole country for decades, which is why Taiwan still calls itself the Republic of China. Both sides accepted that there was just one China. This was reaffirmed in the so-called “1992 consensus”, which finessed the differences by acknowledging that both sides meant something different by the term.
The KMT continues to keep to that. Taiwan’s former President Ma Ying-jeou of the KMT, who was in office 2008-16, said he advocates for "peaceful and democratic unification" during his recent visit to China, also in June. Most countries around the world also recognise some form of the One China formulation.
So it would be fair to say that separation is not widely regarded as a natural state of affairs. Only a tiny minority argue that Taiwan has any legal base for separation, and on pretty spurious grounds. Few propose that when a country has a major constitutional change – in this case the Republic of China (established 1912) being succeeded by the People’s Republic of China (PRC) in 1949 – provinces or states have any right to opt out. This is what is implied, though, when it is said that Taiwan has never been governed by the PRC. It’s like saying that Northern Ireland has never been ruled by the Republic of Ireland – true, but utterly irrelevant.
In which case reunification is surely a legal requirement, and therefore “inevitable”, as Chinese officials say.
One can see why the US in particular finds Taiwan’s separation useful. It was called the "unsinkable aircraft carrier" by US General Douglas MacArthur during the Korean War, and the America is heavily reliant on the island for crucial semiconductors. But what is the point of principle behind stunts such as the then Speaker of the House Nancy Pelosi landing in Taiwan in 2022 and declaring the United Nations' "unwavering commitment to supporting Taiwan's vibrant democracy”? Because as we have seen, historically support for the island’s separation had nothing to do with democracy.
The obvious answer is that the backing was for an anti-Communist regime during the Cold War. That ended in 1991, however, and fears of the “domino effect” or of possible Chinese aggression have to contend with the fact that the number of countries China has invaded since 1979 is precisely zero, whereas the equivalent figure for the US is disputed only because there have been so many American invasions, interventions and bombings.
Some bring up the question of consent. Indeed. When did the Chinese people give their consent to separation for Taiwan?
The analogy isn’t perfect, but it reminds me of a family I know whose patriarch inherited a royal title because the rightful heir was too young to execute the accompanying responsibilities. After living to a ripe old age, the patriarch was succeeded by the same rightful heir. The patriarch’s family was upset – they’d got used to living in a certain manner. But that had been theirs only by accident of circumstance, not by right. Taiwan’s long separation was similarly due to extraordinary circumstance; it was not the island’s by right.
Whether one likes the system of government in Beijing is neither here nor there. There is no legal basis for Taiwan’s reunification with the mainland not to take place. Countries that preach adherence to the rule of law and the importance of territorial integrity should remember this the next time they’re tempted to say something about Taiwan. And chances are, if they examine their official policy they’ll probably find they are signed up to the “one China” principle in any case.
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Read more about the coronavirus
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Brief scores:
Scotland 371-5, 50 overs (C MacLeod 140 no, K Coetzer 58, G Munsey 55)
England 365 all out, 48.5 overs (J Bairstow 105, A Hales 52; M Watt 3-55)
Result: Scotland won by six runs
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
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KILLING OF QASSEM SULEIMANI
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.”
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
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
IF YOU GO
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info
Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.
AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)
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
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
THE BIO
Occupation: Specialised chief medical laboratory technologist
Age: 78
Favourite destination: Always Al Ain “Dar Al Zain”
Hobbies: his work - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”
Other hobbies: football
Favorite football club: Al Ain Sports Club