US-Chinese tensions, already rising because of the coronavirus pandemic and crackdown in Hong Kong, ratcheted up another notch on Wednesday as the United States ordered the closure of the Chinese consulate in Houston within 72 hours.
China reacted angrily to the US move, which came a day after the unveiling of a US indictment of two Chinese nationals for allegedly hacking hundreds of companies worldwide.
"We're setting out clear expectations for how the Chinese Communist Party is going to behave," US Secretary of State Mike Pompeo said during a visit to Denmark.
"And when they don't, we're going to take actions that protect American people, protect our security, our national security, and also protect our economy and jobs," Mr Pompeo said.
"President (Donald) Trump has said 'enough,'" Pompeo said. "We're not going to allow this to continue to happen."
Spokeswoman Morgan Ortagus said the Vienna Convention says countries "have a duty not to interfere in the internal affairs" of the receiving state.
“The United States will not tolerate the China's violations of our sovereignty and intimidation of our people, just as we have not tolerated the PRC’s unfair trade practices, theft of American jobs and other egregious behaviour,” Ms Ortagus said without giving specific details.
Chinese Foreign Ministry representative Wang Wenbin condemned the move and said countermeasures would be taken if the US did not reverse the decision.
“The unilateral closure of China’s consulate general in Houston within a short period of time is an unprecedented escalation of its recent actions against China,” Mr Wang said.
Besides its embassy in Beijing, the US has five consulates in mainland China, according to its website. They are in Shanghai, Guangzhou, Chengdu, Wuhan and Shenyang.
Media reports in Houston said authorities had responded to reports of a fire at the Chinese Consulate. Witnesses said that people were burning paper in what appeared to be rubbish bins, the Houston Chronicle reported.
Police were told that occupants were given until 4pm on Friday to leave the property, the newspaper said.
Houston police said officers responded to a call at the Chinese Consulate at 3417 Montrose Blvd. Police said smoke was seen in an outdoor courtyard area but that officers were not allowed to enter the building.
The Chinese Consulate in Houston was opened in 1979 - the first in the year the United States and the People's Republic of China established diplomatic relations, according to its website.
The office covers eight southern US states - including Texas and Florida - and has nearly one million people in the area registered there.
There are five Chinese consulates in the United States, as well as an embassy in Washington.
State-run tabloid the Global Times launched a poll on Twitter asking people to vote for which US consulate in China should be closed in response, including the ones in Hong Kong, Guangzhou and Chengdu.
The United States has an embassy in Beijing plus five consulates in mainland China and one in Hong Kong.
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
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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
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Maestro
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