The Davos Disconnect

Diplomacy 101: Undiplomatically Speaking

Where Beliefs Clash and Stories Flash

The Davos Disconnect

The 2025 World Economic Forum in Davos opened to unusually blunt rhetoric. UN Secretary-General António Guterres accused world leaders of “dithering while systems collapse,” warning of a fragmented multilateral order. U.S. Treasury officials stressed the importance of AI governance, while China emphasized BRICS-led digital infrastructure alternatives.

A key theme was regulatory divergence—on data privacy, AI standards, and carbon border taxes. The EU’s proposed CBAM (Carbon Border Adjustment Mechanism) drew fire from India and Brazil, who framed it as climate protectionism in disguise.

Outside the plenary halls, civil society groups protested the presence of fossil fuel executives and arms industry sponsors. Davos remains a weather vane, not a compass—revealing anxieties more than solutions. As ever, consensus proved elusive.

The Red Sea Calculus

Diplomacy 101: Undiplomatically Speaking

Where Beliefs Clash and Stories Flash

The Red Sea Calculus

Houthi attacks on commercial shipping in the Red Sea escalated this week, targeting vessels flagged by Western countries. In response, the U.S. and UK launched a series of joint airstrikes against Houthi military infrastructure, citing freedom of navigation under international law.

Iran condemned the strikes, while Russia and China called for de-escalation. Saudi Arabia maintained a cautious distance, avoiding direct support but increasing naval patrols in its territorial waters. The UN Security Council met in emergency session, but no resolution was passed due to familiar veto alignments.

Meanwhile, Egypt reported a 40% drop in Suez Canal revenues since December, underscoring the wider economic consequences of militarized choke points. Maritime insurers have hiked rates, prompting rerouting of cargo around the Cape of Good Hope—a move with significant global trade implications.

Taiwan’s Ballot, Beijing’s Backlash

Diplomacy 101: Undiplomatically Speaking

Where Beliefs Clash and Stories Flash

Taiwan’s Ballot, Beijing’s Backlash

Taiwan’s presidential election delivered a decisive win for Vice President Lai Ching-te, securing a third consecutive term for the Democratic Progressive Party. While Lai avoided explicitly provocative language in his victory speech, Beijing condemned the outcome, accusing the U.S. of meddling and staging immediate military drills in the Taiwan Strait.

The U.S., EU, and Japan issued statements supporting Taiwan’s democratic process but avoided direct references to sovereignty. ASEAN countries remained largely silent, wary of inflaming tensions. China’s response so far has been theatrical but calibrated—military pressure without escalation.

In parallel, the IMF warned of potential regional market volatility tied to political uncertainty in East Asia, though investor confidence in Taiwanese tech remains strong. The Indo-Pacific balance is shifting once again—not through war, but through ballots and posturing.