Davos meet lays bare tensions and challenges

The just-concluded annual meeting of the World Economic Forum in Davos, Switzerland, a platform for discussing international cooperation, has laid bare the profound challenges now straining the very fabric of globalization: intensifying geopolitical tensions and the weaponization of economic ties.

Experts said the escalating unilateralism and protectionism demand a unified global response to defend free trade and the international system with the United Nations at its core. They added that China, as the world's second-largest economy, can act as a vital stabilizer in this turbulent environment.

Held from Jan 19 to 23 under the theme "A Spirit of Dialogue", the gathering of nearly 3,000 cross-sector leaders from 130 countries and regions at the Swiss resort town of Davos concluded with participants facing stark divisions and rare unity. In speeches that captured the forum's tense atmosphere, leaders voiced alarm over a disintegrating international order, with Canadian Prime Minister Mark Carney, for example, warning of a "rupture" in the world order during his speech.

Without naming United States President Donald Trump, Carney criticized "American hegemony". "More recently, great powers began using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited," he said.

Echoing this sentiment, French President Emmanuel Macron said on Tuesday in Davos: "It's a shift toward a world without rules. Where international law is trampled underfoot and where the only law that seems to matter is that of the strongest, and imperial ambitions are resurfacing."

In his special address at the WEF, Trump renewed his push for the US acquisition of Greenland, although he publicly ruled out taking the world's largest island by force. He also sharpened his criticism of Europe and NATO, further straining already frayed transatlantic ties.

A forum of division

Experts observed that the forum's traditional economic focus was eclipsed by political fissures this year. This intensifying geopolitical tension is placing increasing pressure on global trade, they said.

Lyu Xiang, a research fellow at the Chinese Academy of Social Sciences, noted that the transatlantic divide was particularly pronounced at this year's Davos meeting.

"Most European leaders kept their distance from their US counterpart during the forum, reflecting Europe's anger at the US' blatant expression of desire to seize Greenland," Lyu said. "This anger seems to have had some effect, as the US at least said it would not use military means to resolve the issue." Lyu believes that the US will continue to employ economic and other means of coercion to achieve its objective on Greenland.

Wei Zongyou, a professor at Fudan University's Center for American Studies in Shanghai, said, "Carney's speech reflects a widespread international perception of a shifting US role. The US is no longer the creator and defender of the 'liberal international order', but rather has become its 'gravedigger'.

"The US believes it has paid too much and gained too little under the current order, and therefore, advocates using its strength to obtain what it believes it deserves."

This shift, he argued, has led allies to question the reliability of US alliance commitments, significantly eroding trust.

"This year's Davos highlights that the fragmentation of the global economy and the intensification of geopolitical competition are now prominent features of international politics and are likely to remain so in the foreseeable future," Wei said. "These trends pose significant challenges to the global economy."

Sung Soo Eric Kim, an adjunct professor at Yonsei University's Graduate School of Business and CEO of AI strategy advisory Datacrunch Glo-bal in the Republic of Korea, said this year's WEF was very symbolic because Trump declared his design for a new world order, with the US and China at the center of the rivalry.

Shared opportunity

Experts noted that the messages conveyed by the US and Chinese delegations at the forum showcased different worldviews.

Chinese Vice-Premier He Lifeng used the WEF as a platform to call for firm global support for multilateralism and free trade, emphasizing that China's development presents important opportunities for the world.

Lyu, the research fellow at the CASS, said, "China's message is about turning its economic growth and large market into opportunities for the rest of the world, allowing all to benefit. This is a completely different worldview from the US approach of turning its market into a weapon to suppress others."

Lyu emphasized that amid rising protectionism, China is emerging not only as a reliable partner but also as a growth opportunity for other nations. "For example, the China International Import Expo is unique as the world's first national-level and dedicated import fair, symbolizing China's economic opening."

The 8th China International Import Expo, which concluded in November, saw the participation of 4,108 companies from 138 countries and regions, with intended transactions totaling $83.49 billion.

Wei, the professor at Fudan University, emphasized China's role as a beneficiary, driver and defender of globalization. "Facing the headwinds of anti-globalization and protectionism, China, as the world's second-largest economy and top trading powerhouse, has the responsibility and is committed to upholding the multilateral free trade system," he said.

He called for collaboration with stakeholders like Europe to jointly maintain the WTO-based multilateral free trade system to promote the development of the world economy and trade.

The WEF's Global Risks Report 2026, released ahead of the meeting, identified geo-economic confrontation as the top global risk for 2026, with economic risks rising fastest in the short term.

"Facing such circumstances, unity is paramount. We may lack direct leverage to stop some major powers, but if most countries stand together, the attempts of major powers to act arbitrarily will not be so easy to achieve," said Lyu from CASS.

Wei from Fudan University warned of the dangerous precedent set by US protectionism, which could trigger a copycat effect and severely damage global trade. He suggested that China, alongside other economies, must work to counter this trend.

"Furthermore, promoting stable economic and trade ties between China and the US, under the guidance of the leaders of both countries, can also contribute to the stability of global trade and prevent an escalation of trade protectionism," Wei said.

Lucio Blanco Pitlo III, research fellow at the Manila-based Asia Pacific Pathways to Progress Foundation, said: "Coexistence, competition and cooperation are the three key elements of China-US relations. Both sides understand that conflict should be avoided and rivalry has to be managed. Both realize the potential of cooperation."

Xinhua contributed to this story.