Chinese President Xi Jinping shakes hands with then US Vice President Joe Biden in 2013. Reuters
Chinese President Xi Jinping shakes hands with then US Vice President Joe Biden in 2013. Reuters
Chinese President Xi Jinping shakes hands with then US Vice President Joe Biden in 2013. Reuters
Chinese President Xi Jinping shakes hands with then US Vice President Joe Biden in 2013. Reuters

In Biden, Asian nations fear a return to Obama-era sanctimony


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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.

Then Vice President Joe Biden talks to President Barack Obama at their election night party in 2012. AP
Then Vice President Joe Biden talks to President Barack Obama at their election night party in 2012. AP

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.

The US 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. EPA
The US 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. EPA

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

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The specs

Engine: 0.8-litre four cylinder

Power: 70bhp

Torque: 66Nm

Transmission: four-speed manual

Price: $1,075 new in 1967, now valued at $40,000

On sale: Models from 1966 to 1970

The specs: 2018 Renault Megane

Price, base / as tested Dh52,900 / Dh59,200

Engine 1.6L in-line four-cylinder

Transmission Continuously variable transmission

Power 115hp @ 5,500rpm

Torque 156Nm @ 4,000rpm

Fuel economy, combined 6.6L / 100km

The BIO:

He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal

He ascended Mount Everest the next year from the more treacherous north Tibetan side

By 2015, he had completed the Explorers Grand Slam

Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border

He carries dried camel meat, dried dates and a wheat mixture for the final summit push

His new goal is to climb 14 peaks that are more than 8,000 metres above sea level

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
WHAT%20IS%20THE%20LICENSING%20PROCESS%20FOR%20VARA%3F
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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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.”

The cost of Covid testing around the world

Egypt

Dh514 for citizens; Dh865 for tourists

Information can be found through VFS Global.

Jordan

Dh212

Centres include the Speciality Hospital, which now offers drive-through testing.

Cambodia

Dh478

Travel tests are managed by the Ministry of Health and National Institute of Public Health.

Zanzibar

AED 295

Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.

Abu Dhabi

Dh85

Abu Dhabi’s Seha has test centres throughout the UAE.

UK

From Dh400

Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

Juliot Vinolia’s checklist for adopting alternate-day fasting

-      Don’t do it more than once in three days

-      Don’t go under 700 calories on fasting days

-      Ensure there is sufficient water intake, as the body can go in dehydration mode

-      Ensure there is enough roughage (fibre) in the food on fasting days as well

-      Do not binge on processed or fatty foods on non-fasting days

-      Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates

-      Manage your sleep

-      People with existing gastric or mental health issues should avoid fasting

-      Do not fast for prolonged periods without supervision by a qualified expert