Indian Prime Minister Narendra Modi and Chinese President Xi Jinping shake hands at the BRICS summit in Goa, India on October 16, 2016. AP
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping shake hands at the BRICS summit in Goa, India on October 16, 2016. AP
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping shake hands at the BRICS summit in Goa, India on October 16, 2016. AP
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping shake hands at the BRICS summit in Goa, India on October 16, 2016. AP

India and China ties going through 'extremely difficult phase'


Taniya Dutta
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Ties between India and China are going through an “extremely difficult phase” because of a tense border standoff, Indian External Affairs Minister Subramanyam Jaishankar said, as he warned a frosty relationship between the two nations will impede regional growth.

Mr Jaishankar was at Chulalongkorn University in Thailand on Thursday when he spoke about the strained relationship between the nuclear-armed nations, and uncertainty over the future.

“The Asian century will be difficult to happen if India and China don’t come together. And one of the big questions today is where India-China relations are going,” Mr Jaishankar said.

“Because at the moment, the relationship is going through an extremely difficult phase because of what the Chinese have done in the last two years in our border areas,” he said.

Diplomatic relations between the nations have remained frosty since 2020 when at least 20 Indian soldiers were killed after soldiers from both sides fought in the Himalayan region of Ladakh, along the The Line of Actual Control, a notional demarcation line that separates Indian-controlled territory from Chinese-controlled territory.

Beijing said four soldiers were killed and both the nations mobilised tens of thousands of troops and military hardware to the rugged border.

New Delhi has maintained that Chinese troops entered its territory, a claim denied by Beijing.

It was the first such deadly encounter between the rival armies since 1962 when they fought a deadly war along the 3,500-kilometre disputed border.

Both the countries have since engaged in high-level diplomatic and military dialogues, the last being in July, to try to resolve the border standoff.

New Delhi has emphasized the need for complete disengagement on the border to normalise the bilateral relationship.

Mr Jaishankar, without naming Beijing, criticised its opposition to the Quadrilateral Security Dialogue, or Quad, which China has termed as an Asian version of the Nato alliance.

Crew members aboard China's research and survey vessel, 'the Yuan Wang 5', hold Chinese national flags upon their arrival at Hambantota port on August 16, 2022. AFP
Crew members aboard China's research and survey vessel, 'the Yuan Wang 5', hold Chinese national flags upon their arrival at Hambantota port on August 16, 2022. AFP

The informal strategic grouping of the US, Japan, Australia and India is seen as a counterbalance to China’s influence in the Asia-Pacific region.

The minister said it is the “most prominent plurilateral platform” in the Asia-Pacific region, and that the entire region will benefit from the alliance.

“We are confident that the entire Indo-Pacific region will benefit from its activities,” he said.

“If there are reservations in any quarter, these stem from a desire to exercise a veto on the choices of others. And possibly a unilateralist opposition to a collective and co-operative endeavours.”

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

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UAE currency: the story behind the money in your pockets

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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The specs: 2019 Mercedes-Benz C200 Coupe


Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km

Updated: August 19, 2022, 10:16 AM