World Leaders Gather in Davos Amid Fears of Global Order Breakdown

As world leaders, including allies of the United States, gather in the Swiss resort city of Davos for the World Economic Forum (WEF), US President Donald Trump’s attacks on the existing global world order have dominated discussions.

Canadian Prime Minister Mark Carney said the US-led global system is enduring what he described as “a rupture.”

Trump’s threat to take over Greenland, by force if necessary, has deeply unsettled European allies, who have pushed back against the US president’s approach of using brute force to achieve foreign policy goals.

On January 3, US forces abducted Venezuelan President Nicolas Maduro and transported him to the United States in a military operation that sent shockwaves across the international community.

Trump has also threatened to impose new tariffs on European nations should they oppose his stance on Greenland.

The European Union’s top official labelled the proposed tariffs a “mistake,” while the Canadian prime minister warned that middle powers risk marginalisation if they fail to act collectively.

Key Takeaways From Tuesday’s WEF Meetings

Carney: “If you are not at the table, you are on the menu”

Carney warned that middle powers must unite to resist coercion by aggressive superpowers, arguing that traditional assumptions about global order no longer apply.

“If great powers abandon even the pretence of rules and values for the unhindered pursuit of their power and interests, the gains from transactionalism will become harder to replicate.”

He added:

“So we’re engaging broadly, strategically with open eyes. We actively take on the world as it is, not wait around for a world we wish to be.”

The Canadian leader dismissed the idea of a global system built around American hegemony, calling it a “fiction.” He said multilateral institutions such as the World Trade Organization and the United Nations are now greatly diminished.

“Canadians know that our old, comfortable assumption that our geography and alliance memberships automatically conferred prosperity and security is no longer valid,” Carney said.
“Let me be direct. We are in the midst of a rupture, not a transition.”

He added:

“You cannot live within the lie of mutual benefit through integration when integration becomes the source of your subordination.”

Carney stressed that cooperation among middle powers is essential:

“If you are not at the table, you are on the menu.”

He concluded:

“Nostalgia is not a strategy. But we believe that from the fracture, we can build something bigger, better, stronger, more just.”

On Greenland

“Canada strongly opposes tariffs over Greenland and calls for focused talks to achieve our shared objectives of security and prosperity in the Arctic.”

France’s Macron: “We prefer respect to bullies”

French President Emmanuel Macron used his Davos speech to criticise Trump’s threats to impose tariffs on European countries over Greenland.

He described the growing use of tariffs as unacceptable, particularly when linked to territorial sovereignty.

“The endless accumulation of tariffs is fundamentally unacceptable, even more so when they are used as leverage against territorial sovereignty.”

Wearing aviator sunglasses during his address, which the Elysee Palace said were to protect his eyes after a burst blood vessel, Macron joked:

“It’s a time of peace, stability and predictability,”

The remark drew laughter from the audience before he adopted a more serious tone.

“It’s clear we are reaching a time of instability, of imbalances,” he said.
“More than 60 wars in 2024, an absolute record, even if I understand a few of them were fixed.”

Macron outlined his vision for Europe’s future role:

“We will be committed during 2026 to deliver this global agenda in order to fix global imbalances through more cooperation, and we will do our best to build a stronger Europe.”

He added:

“Here, in the epicentre of this continent, we believe we need more growth and more stability in this world.”

Macron called for stronger European trade defence mechanisms while also welcoming foreign investment, including from China.

“China is welcome, but what we need is more Chinese foreign direct investment in Europe in key sectors, not just exports.”

On Greenland, he said:

“We have decided to join a mutual exercise in Greenland without threatening anyone, but simply supporting an ally and another European country, Denmark.”

He ended with a firm message:

“We do prefer respect to bullies.
We do prefer science to plotism.
And we do prefer the rule of law to brutality.
You are welcome in Europe, and you are more than welcome to France.”

EU’s Ursula von der Leyen: “Nostalgia will not bring back the old order”

European Commission President Ursula von der Leyen said recent geopolitical shocks are pushing the EU toward greater independence.

“The good news is we acted immediately. Whether on energy, raw materials, defence or digital, we are moving fast.”

However, she warned:

“We will only be able to capitalise on this opportunity if we recognise that this change is permanent.”

She added:

“Nostalgia is part of our human story, but nostalgia will not bring back the old order.”

Von der Leyen also announced progress toward a free trade agreement with India.

“We are on the cusp of a historic trade agreement,” she said.
“Some call it the mother of all deals, creating a market of 2 billion people accounting for nearly a quarter of global GDP.”

She is expected to visit India early next week.

On Greenland and Denmark, she said sovereignty and territorial integrity are non-negotiable.

“We are working on a package to support Arctic security,” she said, adding that the EU is preparing a major investment surge in Greenland to support infrastructure and local development.

China’s He Lifeng: “China’s development presents an opportunity”

Chinese Vice Premier He Lifeng said China’s growth should be viewed as an opportunity rather than a threat.

“China’s development presents an opportunity, not a threat, to the global economy.”

He called for trade disputes to be resolved through consultation and dialogue, stressing the importance of trust and cooperation.

“Disputes should be addressed through equal consultation to bridge differences and resolve problems.”

He reaffirmed Beijing’s commitment to economic openness:

“China will open its door still wider to the world.”

He added that China would continue improving its business environment and ensure equal treatment for domestic and foreign companies.

“We welcome foreign enterprises to continue investing in China and sharing in China’s opportunities.”

He also urged governments worldwide to provide fair, transparent and predictable investment conditions for Chinese businesses.