BEIJING // It is not enough that China and the US are at odds over Beijing's military buildup or control of the South China Sea.
Now, they are clashing over the extent of air pollution in the Chinese capital.
With heavy smog blanketing Beijing this week, causing hundreds of flights to be cancelled, the US embassy's online pollution monitor went off the charts.
Registering a figure above the maximum of 500, on a scale where anything between 300 and 500 is categorised as "hazardous", the reading contradicted the verdict of the Beijing authorities that the pollution was "moderate".
According to the municipal environmental protection bureau, about three days out of four this year have been "blue sky days", despite the capital experiencing smog-free days only a few times each month.
The mismatch between official data and that published by the US embassy, which is available on Twitter and at http://iphone.bjair.info/, has fuelled angry online posts over the pollution.
"The [US embassy] data really mobilises more public awareness of this issue," said Jhou Rong, a climate and energy campaigner for Greenpeace in China. "They have quite different results from China's official data, which is according to very old standards. It really makes people frustrated."
According to a US diplomatic cable published by WikiLeaks, the Chinese government asked //WHEN?// the US authorities not to keep publishing pollution readings, but the data is still available.
It is based upon levels of pm2.5s, or particulate matter 2.5 micrometres or less in diameter. These are among the most harmful pollutants because some can enter the bloodstream via the lungs, increasing the risk of arterial disease that can lead to heart attacks.
Tiny particulates from power plants, factories, coal-based heating and vehicle exhausts also increase lung cancer rates.
Government pollution statistics do not specify pm2.5 readings, but instead include measurements of larger particulates that are less harmful. The Chinese authorities have promised to begin publishing pm2.5 data by 2016, while the Chinese Academy for Environmental Planning has set a modest target of a 10 per cent reduction in particulate pollution by 2015 in Beijing and other areas.
This is despite average pm2.5 levels being many times higher than levels considered safe.
State-run newspapers are beginning to pressure the authorities to take tougher action, with the Global Times this week warning the debate about pollution was "a matter of government credibility".
Some Chinese people accept the pollution as a part of life.
Zhang Lijia, 47, an author from Nanjing who has lived in Beijing for 15 years, said: "It never bothers me. I grew up in China, I don't pay any attention to it. I want to see a blue sky but if it's not I just get on with my life. If it's foggy, it's foggy."
Elina Lin, 25, who works in the media, said "the pollution is everywhere, not just in Beijing", so there was little point in leaving the city. "Maybe we can live here and they will reduce the pollution," she said. "We are Chinese. This is my hometown."
For some expatriates, the high pollution levels are enough of a reason to consider leaving Beijing.
Patricia Conceicao, 24, is returning to her home country of Portugal after completing a master's degree but said, as a Chinese speaker, she would prefer to stay.
"I have more headaches when the smog is stronger," she said. "If it wasn't for the pollution I would stay because you have a lot of job opportunities. I will only come back if I have a really good job."
While the most severe pollution episodes in Beijing gain publicity, the capital is not the only city grappling with the problem.
Smog is an issue faced by most urban areas in China, including Shanghai, Guangzhou and Hong Kong.
Urumqi, the capital of the Xinjiang province in far-west China, is one of the country's most polluted cities.
On cross-country train journeys, there may be a haze of pollution visible for much or all of the trip.
"The important thing for the environmental protection ... is to do something about it and seriously do something about it," said Wong Tzewai, a specialist on the effects of air pollution at the City University of Hong Kong's Centre for Occupational and Environmental Health Studies.
"The crux of the matter is not whether they measure pm2.5 or not. Really they should do something to bring down the particulates."
dbardsley@thenational.ae
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.”
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
Blue%20Beetle
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SHAITTAN
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
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.
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
Rating: 3/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
SPEC%20SHEET%3A%20APPLE%20IPHONE%2014
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