The Americas

US and Chinese envoys exchange acrimonious remarks in first meeting under Biden administration

Top American and Chinese diplomats open first formal meeting with a war of words

Bryant Harris
Bryant Harris

March 19, 2021

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High-ranking American and Chinese diplomats set an unusually contentious tone for their first meeting on Thursday with acrimonious public remarks during their first meeting under the Biden administration.

Secretary of State Antony Blinken publicly listed several US objections to Chinese policies during the meeting in Alaska. Mr Blinken's criticism included references to the Uighurs, Hong Kong, Tawian and Chinese cyber attacks.

"Each of these actions threatens the rules-based order that maintains global stability," Mr Blinken said. "That's why they're not merely internal matters and why we feel an obligation to raise these issues here today."

Mr Blinken and National Security Adviser Jake Sullivan are in talks with China's top diplomat Yang Jiechi and state councillor Wang Yi.

The Chinese delegation led by Yang Jiechi, centre, director of the Central Foreign Affairs Commission Office and Wang Yi, second left, China's State Councilor and Foreign Minister. Reuters
The Chinese delegation led by Yang Jiechi, centre, director of the Central Foreign Affairs Commission Office and Wang Yi, second left, China's State Councilor and Foreign Minister. Reuters

Mr Yang in turn criticised the killings of black Americans in the United States, singling out the Black Lives Matter movement.

"Many people within the United States actually have little confidence in the democracy of the United States," Mr Yang said.

The US delegation then accused the Chinese diplomats of grandstanding and of breaching a protocol establishing a two-minute time period for opening remarks.

“We have continued with our planned presentation, knowing that exaggerated diplomatic presentations often are aimed at a domestic audience,” said a senior US administration official. “We still have a lot of business to conduct.

“We will use the remaining hours to outline for the Chinese delegation in private the same messages we have consistently delivered in public. The Chinese delegation, on the other hand, seems to have arrived intent on grandstanding, focused on public theatrics and dramatics over substance.”

The meeting came after Mr Blinken and Mr Sullivan visited US allies Japan and South Korea before flying to Alaska for the meeting, which the Biden administration insisted on holding on American soil.

US officials have already promised frank discussions with the Chinese delegation in private meetings scheduled for Thursday and throughout the day on Friday.

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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The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

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