Former prime minister Liz Truss. PA
Former prime minister Liz Truss. PA
Former prime minister Liz Truss. PA
Former prime minister Liz Truss. PA

Liz Truss to push Rishi Sunak on China during Taiwan speech


Soraya Ebrahimi
  • English
  • Arabic

Liz Truss will use a trip to Taiwan to call on her successor as British Prime Minister, Rishi Sunak, to call China a “threat” to UK security.

In a speech in the capital Taipei on Wednesday, Ms Truss is expected to challenge Mr Sunak to deliver on the language he used during last summer’s Conservative Party leadership contest.

During his unsuccessful campaign to become the next Conservative leader, he said China was “the biggest-long term threat to Britain”, while promising to close all 30 of Beijing’s Confucius Institutes in the UK.

The institutes promote Chinese culture on campus in higher education and in some British schools.

“Last summer the now British Prime Minister described China as ‘the biggest long-term threat to Britain’ and said the Confucius Institutes should be closed," she says in a pre-released extract of her speech to the Prospect Foundation.

“He was right and we need to see those policies enacted urgently.

“The UK’s integrated review needs to be amended to state clearly that China is a threat. Confucius Institutes should be closed down immediately.

"Instead the service could be provided by organisations with the support of Hong Kong nationals and Taiwanese nationals who have come to the UK on a free basis.”

During her brief time as prime minister, Ms Truss was widely expected to make the UK government more hawkish when it came to dealing with Beijing.

Liz Truss through the years - in pictures

But her stint in Downing Street, which was cut to only 44 days after her mini-budget's effects on the markets last year saw confidence in her premiership collapse, meant her update to the UK’s foreign policy did not happen.

Mr Sunak chose not to go that far, updating the UK’s integrated review on foreign and defence policy in March to describe China as representing an “epoch-defining and systemic challenge”.

In what is thought to be the first visit of a former British prime minister to Taiwan since Margaret Thatcher made the journey in the 1990s, Ms Truss is expected to urge the West not to work with China.

“There are still too many in the West who are trying to cling on to the idea that we can co-operate with China on issues like climate change, as if there is nothing wrong; that there are bigger issues than Chinese global dominance or the future of freedom and democracy,” she is expected to say.

“But without freedom and democracy there is nothing else.

“We know what happens to the environment or world health under totalitarian regimes that don’t tell the truth.”

Ms Truss is also expected to draw comparisons between the Chinese-Taiwanese tension and the Russian invasion of Ukraine.

China claims Taiwan as its territory and, while western countries say they back Taipei, none have officially recognised it as an independent state.

Beijing is said to be seeking reunification with the autonomous territory.

Truss unrepentant in final speech as UK prime minister - video

But it comes amid fears of a backlash from China against the UK, with Beijing reacting when Nancy Pelosi, then-speaker of the US House of Representatives, visited Taiwan last year.

China retaliated for the visit by staging a naval and air force blockade of Taiwan and cutting off channels of communication with Washington on issues from environmental protection to maritime security.

But Ms Truss will say western allies cannot avoid responding to Chinese aggression out of fear of a new Cold War.

“We in the United Kingdom and the free world must do all we can to back you,” she is expected to say.

A UK government spokesman said it was in Britain’s interests to “continue engagement” with China while recognising the challenges the Far East country presents.

“We have always been clear that China remains the biggest state-based threat to the UK’s economic security," the spokesman said.

“That’s why our integrated review refresh sets out a new approach to dealing with the challenge which China presents for the UK and the wider world.

“Given China is a permanent member of the UN Security Council and the second largest economy in the world, it’s in the national interest to continue engagement particularly on issues such as climate change, global health and macro-economic stability.

“This is an approach that has been reflected by many of our allies.”

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Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

Results

5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Reem Baynounah, Fernando Jara (jockey), Mohamed Daggash (trainer)

5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m; Winner: AF Afham, Tadhg O’Shea, Ernst Oertel

6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout

6.30pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Yas Xmnsor, Saif Al Balushi, Khalifa Al Neyadi

7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Adrie de Vries, Jean de Roualle

7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Haqeeqy, Dane O’Neill, John Hyde.

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

The Baghdad Clock

Shahad Al Rawi, Oneworld

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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.”

'Ashkal'
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Updated: May 17, 2023, 5:37 AM