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Diverging US, Europe strategies deepen rift over Ukraine aid: expert

China

China

China

Diverging US, Europe strategies deepen rift over Ukraine aid: expert

2025-12-19 17:22 Last Updated At:21:47

A widening strategic gap has emerged between the United States and its European allies over how to handle frozen Russian assets, with American efforts to scale back involvement in Ukraine conflicting directly with European plans to sustain long-term support, according to a Chinese scholar.

Su Xiaohui, an associate research fellow at the China Institute of International Studies, said in an interview with China Media Group that although the U.S. previously encouraged European nations to seize these assets, it has recently begun raising obstacles to EU proposals aimed at channeling the funds to Ukraine.

In her view, the shift reflects fundamentally different calculations on the cost of continued engagement and the diplomatic pathway forward.

"The United States has repeatedly emphasized that allies must cover the costs of military aid to Ukraine. It is unwilling to become more deeply involved in the Ukraine crisis and is eager for a swift exit in the near term. Consequently, the European Union sees that continuing its current level of support for Ukraine is an unsustainable burden, forcing it to consider other options, including utilizing frozen Russian assets. This serves not only the goal of supporting Ukraine's military operations but also addresses a series of post-war issues such as reconstruction and reparations," Su said.

Complicating the picture further is the ongoing diplomatic dialogue between the United States and Russia.

"At the same time, the United States is indeed in a hurry to exit, believing that communication channels are currently open and that close diplomatic consultations are underway between the U.S. and Russia. If the European Union were to take action on the Russian assets at this juncture, it would introduce greater uncertainty into the negotiation process, an outcome the United States does not want to see. What the United States urgently hopes for is for some consensus to be reached between Russia and Europe, allowing the U.S. to advance its diplomatic process in the short term," Su said.

This dynamic has created a circular tension as European leaders attempt to secure continued American engagement even as the U.S. seems content to disengage, Su said. Pointing to key factors going forward, she stressed that global onlookers will be watching whether the 27-member EU can reach a unified internal position, as well as the extent to which the U.S. chooses to intervene in European decision-making. As Europe debates its next steps, U.S.-Russia dialogue is expected to continue with the officials from both countries scheduled to meet in the southern U.S. city Miami over the weekend, although expectations for any immediate breakthrough remain low.

"It is evident that the so-called 'peace plan' will not achieve significant progress overnight. Regarding the communication between Russia and the United States, both sides are still primarily in the stage of exchanging information. Russia seeks to understand the details of the United States' discussions with its own allies and with Ukraine before considering its response. The communications between the U.S. and Russia this weekend were focused more on operational or technical-level dialogue rather than indicating that the negotiations have achieved substantial breakthroughs," Su said.

Diverging US, Europe strategies deepen rift over Ukraine aid: expert

Diverging US, Europe strategies deepen rift over Ukraine aid: expert

Diverging US, Europe strategies deepen rift over Ukraine aid: expert

Diverging US, Europe strategies deepen rift over Ukraine aid: expert

China on Thursday launched island-wide special customs operations in the Hainan Free Trade Port (FTP), the world's largest FTP by area, in an effort to boost the country's high-level opening up, said a China Media Group (CMG) commentary published on Thursday.

An adapted English version of the commentary is as follows:

The Hainan Free Trade Port has officially commenced island-wide special customs operations, marking a significant step forward in its goal to become "a pivotal gateway leading China's opening-up in the new era."

The special customs operations of the Hainan Free Trade Port will not only contribute to China's efforts to foster a new development paradigm but also emerge as a new focal point for global shared development opportunities.

This island-wide special customs operations represent another significant milestone in China's reform and opening-up process. It serves as a landmark measure demonstrating China's unwavering commitment to expanding high-level opening-up and promoting the development of an open global economy.

According to Sang Baichuan, dean of the Institute of International Economics at the University of International Business and Economics, following the special customs operations, the "changes" are primarily reflected in the further enhancement of trade and investment liberalization and facilitation. The number of "zero-tariff" goods, as well as the variety of imported commodities, has significantly increased, leading to a substantial reduction in import costs. This will generate immense appeal for investors from various countries. What remains "unchanged" is China's continued commitment to expanding high-level opening-up and its determination and capability to foster mutual benefit and shared prosperity with the world.

For enterprises, a series of measures such as "zero tariffs, low tax rates, and simplified tax systems" means broader scope for benefiting from preferential policies and lower production costs.

Companies registered in Hainan and meeting relevant requirements will pay a corporate income tax rate of just 15 percent through 2027. Meanwhile, the list of duty-free goods has expanded from about 1,900 to 6,600 items, raising coverage from 21 percent to 74 percent of all tariff lines.

For tourists from around the world, the island-wide special customs operations in Hainan also brings numerous benefits.

Currently, the combination of duty-free policies and travel facilitation measures, such as visa-free entry for citizens from 86 countries, is positioning Hainan as an international hub for consumption and tourism.

The launch of the island-wide special customs operations in the Hainan Free Trade Port is expected to inject new momentum into economic globalization.

Located at a strategic crossroads linking the Pacific and Indian oceans, Hainan offers investors a platform to "base in Hainan, access entire China, and reach the Asia-Pacific," supporting both regional and global economic growth.

For Hainan, the island-wide customs operation represents a new starting point.

Looking ahead, the free trade port is expected to further expand opening-up, refine its policy and institutional framework, and develop into a key hub connecting China's domestic and international dual circulation.

Hainan's island-wide customs operations to boost China's high-level opening: commentary

Hainan's island-wide customs operations to boost China's high-level opening: commentary

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