US Secretary of State Antony Blinken and US National Security Adviser Jake Sullivan during their meeting with Yang Jiechi, director of China's Central Foreign Affairs Commission Office and Wang Yi, China's Foreign Minister in Anchorage, Alaska, last week. Reuters
US Secretary of State Antony Blinken and US National Security Adviser Jake Sullivan during their meeting with Yang Jiechi, director of China's Central Foreign Affairs Commission Office and Wang Yi, China's Foreign Minister in Anchorage, Alaska, last week. Reuters
US Secretary of State Antony Blinken and US National Security Adviser Jake Sullivan during their meeting with Yang Jiechi, director of China's Central Foreign Affairs Commission Office and Wang Yi, Ch
At first glance, the US-China dialogue in Anchorage, Alaska, last week appeared to be a disaster. When US Secretary of State Antony Blinken and National Security Adviser Jake Sullivan sat down with Chinese Foreign Minister Wang Yi and Yang Jiechi, the ruling Communist Party's top diplomat, the pleasantries were kept to the minimum.
Mr Blinken said in his opening statement that China’s actions in Xinjiang, Hong Kong and Taiwan “threaten the rules-based order that maintains global stability”, and that “the alternative to a rules-based order would be a far more violent and unstable world". Once Mr Sullivan added that “the areas of concern” the US wanted to discuss ranged from “economic and military coercion to assaults on basic values”, the fuse seemed to have been lit.
In a series of biting responses, Mr Yang upbraided the US for thinking it had the right "to speak to China in a condescending way from a position of strength", rejected the notion of "the rules-based order", and said that America should "stop advancing its own democracy in the rest of the world" since it needed to fix its own system and improve its own human rights record at home.
Contrasting Beijing’s record with Washington’s, Mr Yang added: “We do not believe in invading through the use of force, or to topple other regimes through various means, or to massacre the people of other countries.” Pointing out that the US had announced sanctions on 24 Chinese officials over changes to Hong Kong’s electoral system just before the summit, Mr Wang said: “This is not supposed to be the way one welcomes his guests.”
The attending press corps was clearly shocked by the blunt language. A common conclusion was that the verbal fireworks presaged a "new Cold War", with Beijing and Mr Yang receiving most of the blame for the fracas. "These harsh exchanges will only contribute to the dangerous decay in relations between the world's two most powerful countries," Ian Johnson, the veteran China-watcher, wrote.
But these impressions may be both misplaced and misleading, for a number of reasons.
Firstly, while vehemently put, many of Mr Yang’s criticisms were at least partly justified. He is not alone in finding US advocacy of the rules-based order hypocritical when America refuses to join bodies such as the International Criminal Court, demands China adhere to the UN Convention on the Law of the Sea even though the US has not signed up to it, and has a history of ignoring “international law” whenever it suits it to do so.
The Chinese delegation led by Yang Jiechi, centre, and Wang Yi at the opening session of US-China talks in Anchorage, Alaska, last week. AFP
Similarly, plenty would agree with him that "the universal values advocated by the United States" do not "represent international public opinion", nor that "the rules made by a small number of people" should "serve as the basis for the international order".
Secondly, it seems unlikely that this incident blew up on the spot. Mr Yang, who has a history of grabbing headlines, may well have been determined to hold forth aggressively come what may – and not just to impress an increasingly nationalistic domestic audience.
As a shrewd analysis in The Diplomat magazine put it: "For over a decade, Beijing has been demanding 'mutual respect' from Washington. Now it seems China's diplomats are going to start returning perceived disrespect from their US counterparts with disrespect. Put simply, China doesn't see itself as the junior partner in the US-China dynamic, and is no longer willing to play that role."
The idea that Mr Yang and Mr Wang showed up to make that plain is backed by a commentary in China's state-run Global Times, which said that "international negotiations must be based on equality between the two sides. It is not about one side claiming the role as the headmaster and lecturing the other side at will. In front of the international media, the Chinese side offered a lesson to not just the Americans but also US allies and the entire world". The officials' purpose, it continued, was "very clear" – "to ensure that the US would not misjudge from the start".
What the strong words have left in their wake is a bracing clarity
What does all this amount to in practice? Less than the coverage suggested, according to the Singapore-based American security analyst Blake Herzinger, who wryly tweeted: “Nobody thought there would be a reset. China didn’t win anything. Nobody ate America’s lunch. US-China relations have not changed in a meaningful way in the last two months. Honestly, some of you need to take a breath.”
What the strong words have left in their wake, however, is a bracing clarity. It may well be helpful that the two sides set out their stalls without the customary diplomatic obfuscation, in displays where "everyone kept smiles in public" and "anger was not expressed openly", as Global Times put it.
“The dramatic public exchange has set a more honest approach for a competitive era,” concluded Thomas Wright, a senior fellow at the Brookings Institution. “Historically, the most volatile periods of rivalry between major powers are in the early stages. The red lines become apparent only through interactions in crises. The greatest risk is for either side to miscalculate the resolve or intentions of the other.”
If there is one positive takeaway from the tempestuous Anchorage meeting, it may be that now, at least, there ought to be less danger of that.
“Co-operation benefits both sides,” were some of Mr Yang’s occasionally more emollient words. How to put that into practice is the next challenge.
Sholto Byrnes is an East Asian affairs columnist for The National
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
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
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
New Zealand 9 (Pens: Barrett 2 Drop Goal: Barrett)
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Teams
Pakistan: Sarfraz Ahmed (captain), Mohammad Hafeez, Sahibzada Farhan, Babar Azam, Shoaib Malik, Asif Ali, Shadab Khan, Shaheen Shah Afridi, Usman Khan Shanwari, Hasan Ali, Imad Wasim, Faheem Ashraf.
New Zealand: Kane Williamson (captain), Corey Anderson, Mark Chapman, Lockie Ferguson, Colin de Grandhomme, Adam Milne, Colin Munro, Ajaz Patel, Glenn Phillips, Seth Rance, Tim Seifert, Ish Sodhi, Tim Southee, Ross Taylor.
Evacuations to France hit by controversy
Over 500 Gazans have been evacuated to France since November 2023
Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
Artists and researchers fall under a programme called Pause that began in 2017
It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
Unlike students, they are allowed to bring their families to France
Sunday's games
Liverpool v West Ham United, 4.30pm (UAE)
Southampton v Burnley, 4.30pm
Arsenal v Manchester City, 7pm
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC October 6: v Hyundai Steel Red Angels Women’s FC October 9: v Sabah FA
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UAE v United States, T20 International Series
Both matches at ICC Academy, Dubai. Admission is free.
1st match: Friday, 2pm
2nd match: Saturday, 2pm
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Rameez Shahzad, Amjad Gul, CP Rizwan, Mohammed Boota, Abdul Shakoor, Ahmed Raza, Imran Haider, Sultan Ahmed, Zahoor Khan, Amir Hayat
USA squad: Saurabh Netravalkar (captain), Jaskaran Malhotra, Elmore Hutchinson, Aaron Jones, Nosthush Kenjige, Ali Khan, Jannisar Khan, Xavier Marshall, Monank Patel, Timil Patel, Roy Silva, Jessy Singh, Steven Taylor, Hayden Walsh
Points to remember
Debate the issue, don't attack the person
Build the relationship and dialogue by seeking to find common ground
Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.