The World Economic Forum, colloquially known as the Davos Conference has long been a theatre for geopolitical posturing, visionary declarations and the occasional diplomatic thunderclap.
While still keeping the original aim (forming a bridge between the American and European corporate world), the event slowly evolved into a global nexus for leaders over the decades, a place to confront crises and shape the contours of globalization.
Davos’ history is punctuated with watershed moments.
1979.
The first Chinese delegation’s participation signals Deng Xiaoping’s economic reforms (and foreshadows China’s rise as a global power).
1992.
Nelson Mandela and F.W. de Klerk share the stage, marking South Africa’s transition from apartheid.
2000.
Bill Clinton’s speech on ‘creative capitalism’ reimagined markets as tools for social equity.
2006.
Al Gore’s dire warnings about climate change turn the peaceful little city into a battleground for environmental urgency. Greta Thurnberg only had to follow his footsteps in 2020, when she delivered her searing rebuke of corporate greenwashing. And drew attention to the forum’s paradox: a gathering of elites … criticizing elitism.
European Commission President Ursula von der Leyen might have just joined this illustrious list in 2025, adding a new chapter to this legacy and blending irony, pragmatism and a subtle defiance of Washington’s resurgence under Donald Trump.
Her message was striking and somewhat paradoxical at the same time, the more so in contrast with President Trump’s inauguration.
Von der Leyen declared a new era of ‘European pragmatism’, both with Washington and Beijing.
She knows that it will be a delicate balancing act: she warned of a ‘second China shock’ caused by China’s state-sponsored overcapacity, yet she simultaneously pledged to ‘engage and deepen ties’ with Beijing to mark 50 years of diplomatic relations.
No questions, this was aimed just as much at Washington.
A speech that had to be held after Trump’s first week, even if it was sort of unexpected to hear it from von der Leyen, who, just a year ago, delivered a very different message. She was hedging against American unpredictability while cautiously courting China at the same time.
It seemed as if von der Leyen had finally realized after years of dubious leadership, where Europe’s real interests lied and reacted just in time.
One could call it a ‘nearly pro-active’ policy making, hoping that her newly found courage is strategic and will actually last.
President Trump’s return to the White House has clearly upended transatlantic dynamics. It is difficult to decide which of his many remarks (on tariffs, climate or Greenland) forced Brussels to recalibrate its preferences, but von der Leyen’s speech subtly acknowledged this new reality.
By emphasizing that ‘3.5 million American jobs depend on European trade’ and highlighting transatlantic supply chain integration, she sought to deter Trump’s protectionism, without open confrontation (for now). Yet, her silence on the president’s tariff threats spoke volumes: Europe would not wait for Washington’s whims to shape its future.
Enter China.
While von der Leyen criticized Beijing’s subsidies and export practices (bringing up the EU’s tariffs on Chinese electric vehicles as examples), she also framed engagement as a necessity. ‘2025 is an opportunity to expand trade and investment ties’, she declared, positioning the EU as a bridge between competing superpowers and sending a massage to Washington that the EU had the chance to follow a different path.
Her message was polite and diplomatic, but brutal from Europe that until now, has just mostly followed the American lead.
Von der Leyen’s pivot to China is laced with irony, though.
For years, the EU struggled to craft a unified China policy, with member states like Germany and Hungary favoring economic engagement over confrontation, while others … don’t.
During the first von der Leyen Commission, Brussels labeled China a ‘systemic rival’ and remained tethered to U.S. priorities, particularly on technology and Russia sanctions.
Now, facing a fragmented transatlantic alliance, von der Leyen has seized the mantle of European sovereignty—albeit cautiously.
Her Davos rhetoric signals three key shifts.
Von der Leyen emphasized ‘diversification over dependence’. By announcing plans to upgrade EU-India relations and deepen Indo-Pacific partnerships, von der Leyen aims to reduce reliance on both the U.S. and China, and step closer to BRICS vis-a-vis Washington.
By announcing ‘economic realism’, she acknowledged the market distortions prevailing in China while preserving the existing trade channels, along with applying the EU’s ‘de-risking’ toolkit (tariffs, export controls, and investment screening) if necessary.
And finally, with talking about ‘diplomatic leverage’, von der Leyen emphasized the EU’s role as a ‘rules-based’ actor, contrasting Brussels’ predictability with Trump’s volatility, appealing to global partners wary of American unilateralism.
The true test of von der Leyen’s “proactive” turn lies in execution.
Her speech artfully blended defiance and diplomacy, but actions will determine whether this is a watershed moment or mere optics, an evolution from ‘reactive manager’ to ‘strategic visionary’.
Either way, von der Leyen’s Davos performance was a masterclass in diplomatic irony.
By leveraging Trump’s disruptive politics to justify closer EU-China engagement, she has positioned Brussels as both a critic and a collaborator—a delicate balance that could either fortify European sovereignty or expose its limits. One certainty is that Europe can no longer afford complacency: its ‘room for maneuvering is shrinking … it must act now or risk becoming a pawn in others’ games’, as one expert put it.
It is up to von der Leyen to ensure that the brave words are transformed into a coherent and resilient strategy.