Global cooperation was in and trade wars were out as day two of the World Economic Forum got underway on Tuesday (20 January). China’s Vice-Premier, He Lifeng, warned that "tariffs and trade wars have no winners" - an approach France's President, Emmanuel Macron, also underlined.
During his speech, He Lifeng emphasised the importance of international cooperation, noting that “while economic globalisation is not perfect,” countries “can not completely reject it and retreat to self isolation.”
He also outlined China’s domestic economic priorities, stating that boosting internal demand is central to 2026 plans to encourage consumption while preserving production capacity.
“China will open its door wider to the world,” He said, highlighting intentions to expand opportunities in the services sector.
European Commission President Ursula Von der Leyen stressed that "Europe will always choose the world, and the world is ready to choose Europe," as the European Union navigates historic geopolitical challenges and uncertainty over its economic path.
The bloc recently finalised a landmark trade deal with Mercosur’s South American members while facing strains in the traditional trans-Atlantic alliance. Von der Leyen highlighted the numerous trade agreements the EU is pursuing beyond the Mercosur deal, amid a new era of U.S. tariffs and protectionism.
Von der Leyen also noted that the region clearly "needs to adjust to a new security architecture.”
French President Emmanuel Macron called for greater stability and adherence to international law, warning of “a shift towards a world without rules, where international law is trampled underfoot and where the only law that seems to matter is that of the strongest.”
“We do believe that we need more growth, we need more stability in this world, but we do prefer respect to bullies. We do prefer science to (conspiracies) and we do prefer rule of law to brutality,” he stated.
Macron also highlighted the importance of foreign investment, noting that “Europe needs more Chinese investment in key European sectors,” while cautioning against the use of tariffs on allies.
The French President stressed that "it doesn't make sense to threaten allies with tariffs".
"The crazy thing is we can be put in a situation where we have to use the anti-coercion instrument towards the U.S.” he said.
In an interview on the sidelines of the summit, U.S. Treasury Secretary Scott Bessent urged European nations not to retaliate against the United States. He compared the reaction to the 25% tariff threatened by President Donald Trump on European countries to “hysteria.”
“I would say this is the same kind of hysteria that we heard on 2 April. There was a panic,” he stated.
Bessent advised caution, saying: “What I am urging everyone here to do is sit back, take a deep breath, and let things play out. The worst thing countries can do is escalate against the United States.”
The U.S. President announced a 100% tariff on all goods from nations including the U.K., Denmark, France, and Germany as part of his push to assert control over Greenland, a self-governing territory under Danish sovereignty.
Canadian Prime Minister Mark Carney is also scheduled to address the forum.
Summit scope
Børge Brende, President and CEO of the World Economic Forum, opened the day's events by reflecting on the evolving global landscape.
Unlike last year, when concerns centered on a decade of sluggish growth, the world is now experienci, monitoredng steady economic expansion, accompanied by increasing trade, Brende said.
Technology is playing a key role in this upswing, “If we get it right, the new technologies can be the new driver of growth for decades to come,” he noted.
This year the summit in Davos brings together nearly 3,000 participants from more than 130 countries, including about 400 top political leaders and close to 65 heads of state and government.
The gathering, one of the highest‑level in the WEF’s history, reflects growing global uncertainty as leaders seek common ground on economic growth, technological innovation and geopolitical friction.
Attendees include leaders from Qatar and Morocco as well as numerous CEOs and business luminaries.
Eurasia in focus
A panel titled “Defining Eurasia's Economic Identity” is set to take place on Tuesday, exploring the shifting balance of influence and power in the Caucasus and Central Asia amid competing interests from East and West.
The discussion will focus on emerging trade corridors, ambitious infrastructure projects, and heightened competition over resources, examining how the region can maximise opportunities and strengthen its role in these expanding routes.
The panel will feature prominent speakers including Armenian President Vahagn Khachaturyan, Azerbaijani President Ilham Aliyev, Limak Holding Chairperson Ebru Özdemir, and Serbian President Aleksandar Vučić.
Euronews EU Correspondent Sasha Vakulina will moderate the dialogue.
World leaders are also set to debate broader geopolitical challenges, including the path to peace in Ukraine, rebuilding trust in Latin America and Africa’s role in the evolving world economy.
Day 2 of the forum has seen debates on global economic strategy, technology governance and multilateral cooperation, against a backdrop of rising geopolitical tensions, such as disputes over Greenland and broader U.S.-EU relations, that have loomed over discussions.
Prominent voices from the corporate world are also addressing participants.
Microsoft CEO Satya Nadella spoke on responsible technological innovation, saying energy costs will play a decisive role in determining which nations lead the AI race.
He described a new global commodity in the form of “tokens” — the basic units of processing purchased by AI users to run tasks.
“The job of every economy and every firm in the economy is to translate these tokens into economic growth, then if you have a cheaper commodity, it’s better,” he added.
Palantir Technologies CEO and Co‑Founder Alex Karp is expected to share insights on the future of global business and data.
Sessions will focus on how to scale artificial intelligence responsibly, investing in the workforce, and whether electric vehicles can lead future mobility. Energy security, international cooperation in a fractious global environment, and economic growth within environmental limits are also major themes.
This story is being updated.
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