Dear reader,

The annual geopolitical circus came to the Swiss ski resort of Davos this week, with the planet’s big players pitching their tents for the rest of the global village. The US went full freestyle destabiliser, China was the low-profile multipolarist and Canada emerged from the middle as a born-again pragmatist. The post-war performance is over and there are new shows on the road.

For a close look at the Taiwan issue, explore our new series on Beijing’s policy recalibration.

We welcome feedback. You can email me at globalimpact@scmp.com and if you enjoy this issue, let us know.

The Big Picture

Frenemies at the gate
Donald Trump attacks allies and praises traditional adversaries in Davos.

• Why it matters: Beijing has Arctic ambitions that play a part in Trump’s obsession with Greenland
• Trump backs off on his threats of force and others look for a way to move on
• Meanwhile, what is China’s long game in Iran?
• Also, Britain approves China’s mega embassy plan, clearing the way for its PM to visit
• And, Canada reverses course towards China

Heavy metal
China’s military rolls out new hardware and expands its arsenal.

• Why it matters: Western defence contractors are sizing up the PLA as a potential adversary 
• Meanwhile, what do the Fujian’s design flaws mean for China’s next aircraft carrier?
• And, what’s new about China’s H-6J maritime strike bomber?
• Also, what will be powering China’s next-generation warships?
• And, how could J-20 jets challenge US air power in the first island chain by 2030?

Wins and Fails

Former intelligence official Gao Yichen is expelled from the Communist Party for corruption  

Gao Huijun rises from a humble start to be the first mainland Chinese to preside over one of the world’s leading electronic engineering societies

Japan’s last two giant pandas book an early trip back to China

Big Numbers

4.5% – China’s GDP growth in the fourth quarter 

US$213 billion  –  the record total of belt and road deals signed in 2025

9 – the death toll from an explosion at a rare earths steel plant in northern China

US$500 billion – Taiwan’s commitment to invest in the US in exchange for lower tariffs

Direct Quote

"While Europe is certainly drifting away from Washington in its pursuit of strategic autonomy, it will remain highly sceptical of Beijing.”

Andreas Boje Forsby, a senior researcher at the Danish Institute for International Studies, on the implications of the widening cracks in the transatlantic alliance.