As world leaders, including U.S. allies, gather in the Swiss resort city of Davos for the World Economic Forum (WEF), U.S. President Donald Trump’s attacks on the existing world order are top of mind, with Canadian Prime Minister Mark Carney saying the U.S.-led global system is at a “break”.
President Trump’s threat to seize Greenland by force if necessary has upset European allies who oppose the US president’s policy of using force to achieve foreign policy goals. On January 3, US forces abducted Venezuelan President Nicolas Maduro and brought him to the United States in a military operation that shocked the world.
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President Trump has threatened to impose new tariffs on Greenland if European countries object.
A senior European Union official called the proposed tariffs a “mistake” and Canada’s prime minister warned that middle powers risk being ignored unless they act together.
Key takeaways from Tuesday’s WEF meeting include:
Carney said the world’s middle powers must unite to resist coercion by aggressive superpowers, warning that traditional assumptions about world order no longer hold.
“If great powers abandon even the pretense of rules and values in order to pursue their own power and interests unimpeded, the gains from transactionalism will be harder to replicate.”
“So we are working strategically and broadly with our eyes open,” he said. “Instead of waiting for the world to become what we want it to be, we actively embrace the world as it is.”
Canada’s leader dismissed the notion of a world system built around “American hegemony” as “fiction” and argued that multilateralism is fading as institutions such as the World Trade Organization and the United Nations are “significantly downsized.”
“Canadians know that the old, comfortable assumptions that geography and alliance membership automatically bring prosperity and security no longer apply,” Carney said. “Let me be blunt: We are not in a transition, we are in the midst of a discontinuity.”
Carney added: “We cannot ‘live in the lie’ of mutual benefits from integration when integration becomes a source of subordination.”
He said “China’s great powers,” including Canada, must work together because “if you’re not at the table, you’re on the menu.”
“Nostalgia is not a strategy. But we believe we can build something bigger, better, stronger and more just out of that destruction.”
Turning to Greenland, Carney said:
“Canada strongly opposes tariffs on Greenland and calls for intensive consultations to achieve our shared goal of Arctic security and prosperity.”
French President Macron: ‘We respect bullies’
In a speech at Davos, French President Emmanuel Macron condemned President Trump’s threat to impose tariffs to pressure European countries over Greenland.
President Macron said the “endless accumulation” of new tariffs is fundamentally unacceptable, and “even more unacceptable when it is used as a lever against territorial sovereignty.”
During his speech, Macron wore aviator sunglasses, which the Elysée Palace said were meant to protect his eyes after a blood vessel burst, and joked:
“These are peaceful, stable, predictable times,” he said, drawing laughter from the audience.
Then he said in a more serious tone.
“It is clear that we are living in a period of instability and imbalance,” the French president continued. “In 2024 there will be over 60 wars, some of which I understand have been revised, but it is an absolute record.”
Mr Macron concluded by outlining his vision for Europe’s role in addressing global challenges.
“In 2026, we will strive to realize this global challenge to redress global imbalances through further cooperation, and we will do our best to achieve a stronger Europe,” he said.
“Here in the heart of this continent, we believe that our world needs more growth and more stability.”
He called on Europe to strengthen its trade defenses and seek investment, including from China, the world’s second-largest economy.
“China is welcome, but what we need is to further expand Chinese foreign direct investment in Europe in some key areas, not only to export to Europe but also to transfer some technology and contribute to our growth,” he said.
“We decided to participate in mutual exercises in Greenland without threatening anyone, just supporting our allies and another European country, Denmark,” he said of Greenland.
He concluded his speech with the following: “We want to respect bullies.” We prefer science to conspiracy, and the rule of law to brutality. You’re welcome in Europe, and you’re also welcome in France. ”
EU’s Ursula von der Leyen: “Nostalgia will not restore the old order”
European Commission President Ursula von der Leyen said a series of recent geopolitical shocks required the EU to build a more independent Europe.
“The good news is that we acted quickly. Whether it’s energy or raw materials, defense or digital, we’re acting quickly.”
But she warned that the EU “will only be able to take advantage of this opportunity if it recognizes that this change is permanent.”
“Of course, nostalgia is part of the human story, but it will not restore the old order.”
Von der Leyen also said that the EU is close to signing a free trade agreement with India, but more work is still needed to finalize the deal.
“We are on the brink of a historic trade deal,” she said.
“Some call this the mother of all trades. It would create a market of 2 billion people representing almost a quarter of global GDP.”
Ms von der Leyen is scheduled to visit India early next week.
The European Commission President also said that the sovereignty and territorial integrity of Denmark and Greenland are non-negotiable.
“We are working on a package to support Arctic security,” he said, adding that the EU was also preparing “a major surge of European investment in Greenland” to support the local economy and infrastructure.
China’s Mr. He: “China’s development is an opportunity”
China’s development is an opportunity, not a threat, and the Chinese government is ready to leverage its market strengths and share growth with other countries, Chinese Vice Premier He Lifeng said at the World Economic Forum.
“China’s development is not a threat but an opportunity for the world economy,” he said, adding that disputes and misunderstandings in international trade should be addressed through “equal consultations” to build trust, bridge differences and resolve problems.
He also stressed that China will continue to open up its economy.
“China will open up more widely to the world,” he said, pledging to align this policy with high standards of international economic and trade rules.
He said China will further promote a market-oriented, law-based and internationalized business environment and ensure equal treatment for domestic and foreign enterprises.
“We welcome foreign companies to continue investing in China and share in China’s opportunities,” he said, calling on other governments to provide Chinese companies with a fair, non-discriminatory, transparent and predictable investment environment.
