As the results of the US presidential election became clear; governments and policymakers all over the world have been asking themselves the same question: what will a Joe Biden administration mean for us? Nowhere, perhaps, has this query been raised more urgently than in Asia. This is particularly the case in the region Americans now like to refer to as the Indo-Pacific, which the Biden team is said to regard as being “the place of the future” and is also the crucible of great power rivalry between China and the US.
The President-elect has assembled a foreign policy and national security advisory group of over 2,000 people, among whom are many veterans of the Obama-Biden administrations. This is supposed to be reassuring. To many in East Asia, however, it is having precisely the opposite effect. Mr Obama may be associated with the “pivot to Asia”, but this shift is now widely regarded as having been stronger on presentation than on substance. Regional states were left wondering just how real US commitment was, amid doubts that Mr Obama and his officials truly understood Beijing’s ambitions or how to deal with them.
This view was expressed most trenchantly by the former Singaporean diplomat Bilahari Kausikan who, in a widely noticed op-ed last week, wrote that “Obama had little stomach for exercising power. There was even reason to wonder whether his administration, particularly in its second term, really understood international relations.” Mr Kausikan accused Mr Obama of having been outplayed by President Xi Jinping, not least over the militarisation of the South China Sea. President Donald Trump, by contrast, “understood power, albeit instinctively.”
Particular alarm has been aroused over the suggestion that Mr Obama’s national security adviser Susan Rice could be named Mr Biden’s Secretary of State. She, Mr Kausikan tweeted a few months ago, “would be a disaster. She has very little interest in Asia, no stomach for competition, and thinks of foreign policy as humanitarian intervention.” Mr Kausikan may be outspoken, but he echoes thoughts that plenty prefer not to make public. Perishingly few want Mr Biden’s White House to be an “Obama, Part 2”.
Almost as unpopular is the idea that the new administration would “put values and democracy back at the centre of US foreign policy”, as a key Biden foreign policy adviser, Jake Sullivan, has said it would. Quite apart from the regional dislike of Uncle Sam’s finger-wagging, after this election the US has never looked in a worse state to lecture others about democracy. The next White House should repair the faults in its own system before presuming to tell Asian states how they should reform themselves.
Mr Biden’s pick as Secretary of State will be crucial for how his administration is received in the region, as will the wider State and National Security Council (NSC) teams. If the President-elect is serious about reaching across the aisle, he might do well to persuade Mr Trump’s Deputy National Security Adviser, Matt Pottinger, to take a role. Formerly Senior Director for East Asia on the NSC, Mr Pottinger is far too hawkish on China for my tastes, but he is witty, candid and a fluent Mandarin speaker who is too talented not to be a voice in the room.
Above all, what Mr Biden needs to do is combine the good intentions of the Obama administration with the firmness Mr Trump sometimes displayed – without the latter’s tendency to change policy through a midnight tweet, of course. Allies, friends and neutral parties would all be better served by more clarity over America’s purpose. The US needs to be precise about what its interests are, and firm that it will act to defend them – just as any sensible government would – rather than waffling on about the importance of universal values that are far from universal in the Indo-Pacific. At the same time, it must engage with China in good faith, which means conceding that to whatever extent a “rules based international order” exists, it was not formed with Chinese input, and Beijing’s concerns and proposals are overdue in being heard.
What Mr Biden needs to do is combine the good intentions of the Obama administration with the firmness Mr Trump sometimes displayed
The Biden administration should also be brutally realistic about China. It must not give the impression, as some believe Secretary Pompeo has, that the US is intent on regime change. Mr Biden should heed the advice of UK-based academic Kerry Brown “to purge our language, outside China, of the constant desire to urge it to become like us, and to be constantly wanting to preach and urge it to reform and change in ways that will, we assume, make it more like us”. Mr Brown, professor of Chinese Studies at King’s College London, formerly thought that was what Western countries should do. Now, he wrote this August, “the best we can hope from China is simply to be stable... Knowledge, humility, and honesty will be the things that help the outside world deal with the historic challenge of China’s rise.”
Mr Biden and his officials should make sure they show up at the various regional summits, and that they fill diplomatic posts in the region promptly – two strikes against the current administration. But they should also take full advantage of their ability to press the “reset” button. Everyone expects them to do so in any case, but some have pointed out that there were plusses to President Trump’s tendency to disruption. Some policy saws needed to be junked. Past approaches towards North Korea had not worked; even if Mr Trump’s didn’t in the end either, it showed that a different form of dialogue was possible.
There are great opportunities for the next administration – for both de-escalation and greater co-operation in the Indo-Pacific. Cold-eyed analysis, rather than the windy rhetoric of “hope”, is what will be required, however. In foreign policy terms, “Back to the future” is a film few in the Indo-Pacific want to see again.
Sholto Byrnes is an East Asian affairs columnist for The National
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
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Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
COMPANY%20PROFILE
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THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Despacito's dominance in numbers
Released: 2017
Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon
Views: 5.3 billion on YouTube
Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification
Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.
Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards
COMPANY%20PROFILE
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How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
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MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
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.”
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million