BEIJING // A jailed Chinese human rights campaigner was awarded the 2010 Nobel Peace Prize yesterday in a highly controversial decision by the awards committee, which defied earlier calls from Beijing for him to be blacklisted.
Liu Xiaobo, sentenced last year to 11 years behind bars for incitement to subvert state power, was selected for trying by nonviolent means to promote democratic reforms in his home country.
China reacted angrily, with state media reports saying the Nobel committee had "desecrated" the prize and warning that ties with Norway, where the peace prize is based, would suffer.
Ragnhild Imserslund, the Norwegian foreign ministry spokeswoman, said the Norwegian ambassador to China, Svein Saether, was called in to China's foreign ministry. And in Oslo, the Chinese ambassador to Norway met with Erik Lahnstein, a state secretary at Norway's foreign ministry.
She said both meetings occurred at China's request to express its discontent with the peace prize decision.
However, human rights groups and western leaders, including last year's winner Barack Obama, the US president, called for the 54-year-old dissident's release.
In a statement, the Nobel committee said Mr Liu had been chosen "for his long and non-violent struggle for fundamental human rights in China".
Mr Liu was described by the committee's president, Thorbjoern Jagland, as being "the foremost symbol of the wide-ranging struggle for human rights in China".
In contrast to some Chinese dissidents, Mr Liu has advocated only peaceful means to encourage the political reforms that China has resisted introducing despite three decades of economic liberalisation.
Amid speculation he might win the award, Mr Liu had gained the support of Vaclav Havel, the former president of Czechoslovakia and later the Czech Republic, whose Charter 77 call for human rights helped to spark the Velvet Revolution that ended communist rule in 1989 and in turn inspired Mr Liu's own Charter 08.
Mr Liu was arrested in December 2008 just before this document, a call for greater political freedom in China, was due to be published. A year later he was given 11 years in jail for inciting subversion of state power, a charge linked to the document and other political freedom literature.
In choosing Mr Liu, the Nobel committee also cited his involvement in the 1989 pro-democracy demonstrations in Tiananmen Square that sparked a bloody crackdown. Mr Liu persuaded some students to leave the square, and was later jailed for his involvement in the protests.
Reacting to yesterday's announcement, Ma Zhaoxu, a spokesman for China's foreign ministry, said Mr Liu was a criminal sentenced for violating Chinese law, the official Xinhua news agency reported. "What he has done is contrary to the purpose of the Nobel Peace Prize," Mr Ma said. The decision to award the prize to Mr Liu "ran contrary to and desecrated the prize", Xinhua reported. China had late last month said Mr Liu should not be chosen for the award.
CNN reported Mr Liu's wife, Liu Xia, was planning yesterday to visit her husband in jail to tell him of his success. "I am totally shocked and feel so happy," she told the network. She said she hoped governments across the world would call for her husband's release, and told Reuters her husband's fellow pro-democracy campaigners had hoped the award would change China.
However, Mr Liu's lawyer said he did not expect his client would be released early because of the news. A small number of pro-democracy campaigners gathered with placards in Beijing yesterday evening, the Associated Press reported.
Corinna-Barbara Francis, a China specialist for Amnesty International, said "there's no earthly justification" for keeping Mr Liu and other pro-democracy campaigners in jail. "We really hope this will give a major boost to Liu Xioabo and many, many others who've been involved for many years in pushing China to a more transparent, democratic and participatory system," she said. "This is a strong message to China that its actions in putting people like Liu Xiaobo in jail are really condemned."
Although giving the prize to Mr Liu has made headlines worldwide, Zhang Baohui, an associate professor in the department of political science at Lingnan University in Hong Kong, said the repercussions in China would probably be limited. Many Chinese, he said, would react with anger at what they would see as foreign meddling. "If an international body wants to put pressure, often the Chinese people's sympathies are with their own government. They see it as a western scheme to interfere," he said.
Few people on the streets of the Chinese capital yesterday had heard of Mr Liu, and indeed some criticised the Nobel committee.
Mr Ma, 28, a catering employee who declined to give his first name, said it was "understandable" Mr Liu had been selected, but said he did not think "democracy was going to work" in present-day China. "Chinese people are not ready for democracy yet," he said. "The Chinese people are not educated, we're not as developed as Taiwan. Democracy is for the future, not right now."
Mr Liu is not well known in China, said Zou Huaqiang, 33, a human resources manager originally from Shenzhen, who also had not previously heard of him.
"This is absolutely intervention in China's domestic affairs. We have a judiciary, we have a justice system. It's totally up to us to tell whether a citizen has committed a crime." Giving Mr Liu the prize was, he said, "equal to saying the Chinese government has no legitimacy over this country and the justice system doesn't work".
dbardsley@thenational.ae
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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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.”
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
MATCH INFO
Uefa Champions League, last-16 second leg
Paris Saint-Germain (1) v Borussia Dortmund (2)
Kick-off: Midnight, Thursday, March 12
Stadium: Parc des Princes
Live: On beIN Sports HD
Fight card
Bantamweight
Siyovush Gulmamadov (TJK) v Rey Nacionales (PHI)
Lightweight
Alexandru Chitoran (ROM) v Hussein Fakhir Abed (SYR)
Catch 74kg
Tohir Zhuraev (TJK) v Omar Hussein (JOR)
Strawweight (Female)
Weronika Zygmunt (POL) v Seo Ye-dam (KOR)
Featherweight
Kaan Ofli (TUR) v Walid Laidi (ALG)
Lightweight
Leandro Martins (BRA) v Abdulla Al Bousheiri (KUW)
Welterweight
Ahmad Labban (LEB) v Sofiane Benchohra (ALG)
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR)
Lightweight
Mohammed Yahya (UAE) v Glen Ranillo (PHI)
Lightweight
Alan Omer (GER) v Aidan Aguilera (AUS)
Welterweight
Mounir Lazzez (TUN) Sasha Palatnikov (HKG)
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR)
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2