Nato Secretary General Jens Stoltenberg will struggle to get a consensus within Europe on how to deal with China. AP Photo
Nato Secretary General Jens Stoltenberg will struggle to get a consensus within Europe on how to deal with China. AP Photo
Nato Secretary General Jens Stoltenberg will struggle to get a consensus within Europe on how to deal with China. AP Photo
Nato Secretary General Jens Stoltenberg will struggle to get a consensus within Europe on how to deal with China. AP Photo

Nato's new 10-year strategy seems to be all about China


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On November 25, Nato Secretary General Jens Stoltenberg released a report titled Nato 2030, meant to reveal the 30-nation security alliance's strategic orientations. The last time such a report was issued was in 2010, titled "Strategic Concept". It is essentially a Nato equivalent of the US National Security Strategy.

The document details many security challenges that have emerged during the past decade, including social unrest and terrorist threats in the Middle East, and, as Nato sees it, Russia's assertive agenda in its neighbouring states.

But its most remarkable feature is the description of China as a "systemic rival" of Nato, on par with Russia. The report repeatedly talks of challenges posed by Beijing to Europe, the Middle East and the Indo-Pacific region.

This is the first time a Nato document has portrayed China in such manner. In contrast, the 2010 Strategic Concept did not even mention Beijing. This reflects how much the discussion on China between the US and its European allies has evolved over the past 10 years. In April 2019, US Vice President Mike Pence used the celebrations of Nato's 70th anniversary to call on its member states to play a greater role in the Indo-Pacific region vis-a-vis China. Mr Pence's words demonstrated growing tensions between Washington and Beijing during the Trump administration – be they over tariffs, Chinese naval activities in the South China Sea or 5G competition.

The new focus on China could have implications on how Nato views the Arab world. The document depicts the Middle East primarily as a theatre of power plays between the West, Russia and China – reminiscent of the Cold War era. But this is a skewed vision of the region, one that could narrow Nato's partnerships with Arab countries as a means to balance China.

It is worth asking whether Nato today should consider Vladimir Putin's Russia or Xi Jinping's China as enemies or as partners against a common threat. AP Photo
It is worth asking whether Nato today should consider Vladimir Putin's Russia or Xi Jinping's China as enemies or as partners against a common threat. AP Photo

That worldview is unlikely to fade away under a Biden administration. In fact, at the moment, China might be one of the few international issues rallying bipartisan support in the US. However, President-elect Joe Biden may differ from President Donald Trump in his expectations of allies when addressing it. It is, therefore, no coincidence that Nato felt the need to acknowledge the issue of China on its own terms.

The Chinese question did not surface suddenly in Nato discussions in 2020. For years, the alliance has been speculating about the impact of China's strategic rise, and more broadly the new primacy of Asia in international politics.

In 2019, Fabrice Pothier, formerly the head of Nato's Policy Planning Unit, wrote that "if Nato did not go to the Asia-Pacific, the region would come to Nato". European countries also began re-orienting their foreign policies towards Asia. France released its own Indo-Pacific strategy in 2019, denouncing what it perceived to be China's gunboat diplomacy vis-a-vis its South-East Asian neighbours, in tandem with cementing new political ties with India and Australia. Meanwhile, the UK also revived its partnerships with Asian allies, amid mounting speculation over the potential forward deployment of British naval assets in East Asia.

These developments indicate a certain degree of alignment between the US and some of its European allies on the nature of the Chinese challenge. But putting China explicitly on the agenda of Nato is a major new step that will generate more geopolitical uncertainty, rather than clarity. There is no consensus in Europe on how it should define its relations with China. Whereas the views in France may echo those in Washington, other countries maintain a distinct position. For instance, Italy embraced China's Belt and Road Initiative. Last August, Foreign Minister Luigi di Maio talked of building a "strategic partnership" with Beijing.

Nato leaders at the highest level have agreed to assemble the 19-nation armada during the Covid-19 outbreak. AFP
Nato leaders at the highest level have agreed to assemble the 19-nation armada during the Covid-19 outbreak. AFP

In the current context, adding China to the Nato agenda is likely to exacerbate the disputes among western allies. Until recently, this internal debate was driven by two competing views. On the one hand, those in eastern Europe argued that Russia, particularly after the 2014 annexation of Crimea, was the obvious priority that required Nato's full attention and resources. On the other, those in southern Europe argued that the major threat to the alliance was instability in North Africa and the Middle East, with its consequences in terms of terrorist attacks and illegal migration.

Nato has always trodden a fine line between the different priorities of its member states, but in the past few years the political environment in Brussels has deteriorated, in light of Mr Trump's overt contempt for the politics of the alliance and the escalating dispute between France and Turkey, two of its key members. That particular rift has also altered perceptions of the strength of the Nato alliance in places like the Middle East, where France and Turkey have publicly competed to solidify their own alliances.

Furthermore, Nato appears ill-prepared to play a role in a hypothetical US-China confrontation. As a military alliance, it devotes most of its time and resources to defending Nato territories. It is in fit shape for a Cold War scenario of a conflict with Russia. But so far the competition between Washington and Beijing is of a different nature, given that it primarily focuses on economics, a domain outside Nato's scope. Even if tensions were to flare up in East Asia, a military crisis would not automatically lead to an engagement of the alliance, whose original mission remains the defence of the territories of its members.

Michael Pompeo, US Secretary of State, left, speaks to Toshimitsu Motegi, Japan's Foreign Minister, right, during a meeting of the 'Quad' in Tokyo in October. Bloomberg
Michael Pompeo, US Secretary of State, left, speaks to Toshimitsu Motegi, Japan's Foreign Minister, right, during a meeting of the 'Quad' in Tokyo in October. Bloomberg
The mention of China in the new Nato strategic document clearly signals the desire in the West to reframe the trans-Atlantic partnership vis-a-vis the rise of Beijing

Also, while Nato may aspire to a greater role in the Indo-Pacific, its diplomatic reach in the area is limited. Nato partnerships with Australia, New Zealand, or Asian partners such as Japan, are modest. Significantly, the Nato 2030 report recommends stronger ties with India, a move designed to reign in China but which merely rehashes old American strategies. To this day, Delhi maintains a cautious distance from Nato as a result of two main factors: India's enduring non-alignment foreign policy and its general scepticism of multilateral organisations.

The mention of China in the new Nato strategic document clearly signals the desire in the West to reframe the trans-Atlantic partnership vis-a-vis the rise of Beijing. However, it cannot simply be described as just a policy shift. Rather, it is the manifestation of major political battles to come in Brussels.

Jean-Loup Samaan is an Abu Dhabi-based researcher in strategic affairs

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Rating: 4/5

The biog

Occupation: Key marker and auto electrician

Hometown: Ghazala, Syria

Date of arrival in Abu Dhabi: May 15, 1978

Family: 11 siblings, a wife, three sons and one daughter

Favourite place in UAE: Abu Dhabi

Favourite hobby: I like to do a mix of things, like listening to poetry for example.

Favourite Syrian artist: Sabah Fakhri, a tenor from Aleppo

Favourite food: fresh fish

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Children who witnessed blood bath want to help others

Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.

As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.

Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.

“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”

Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.

“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”

Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

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Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

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Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

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November 2025

180 Petrofac employees laid off in the UAE

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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.”

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'Panga'

Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

Rating: 3.5/5

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