As the world pays attention to this year's World Economic Forum meeting in Davos, Switzerland, one reality has become increasingly clear: Global risks are no longer occasional disruptions. They have become structural features of the international system, shaping economic choices, political stability and long-term development.

Furthermore, geopolitical tensions, economic fragmentation, climate stress and rapid technological change are no longer separate challenges. They reinforce one another, creating a world in which uncertainty is persistent and resilience has become a strategic priority. In this environment, managing risk is no longer a defensive exercise; it is a central pillar of sustainable growth.

For decades, globalization was associated with efficiency, interdependence and shared prosperity. Today, that model is under strain. A growing tendency to use trade, investment and technology policies as strategic tools is reshaping the global economy.

Tariffs, investment screening, export controls and supply-chain realignments are increasingly influencing economic decisions. While often justified by concerns over security and resilience, their cumulative effect is greater fragmentation, higher costs and reduced predictability.

The paradox is clear: Attempts to reduce national vulnerability can increase global instability.

Environmental pressures remain among the most serious long-term risks. Extreme weather events, biodiversity loss and ecosystem degradation are no longer distant scenarios. They are already affecting food security, public finances and development prospects, particularly in emerging and developing economies. Climate action, therefore, is not only an environmental imperative but a foundation for economic stability.

At the same time, rapid advances in artificial intelligence and digital technologies are reshaping production, governance and social interaction. These technologies not only offer powerful tools for innovation and productivity, but they also raise new questions about equity, governance and trust. The challenge is not to slow progress, but to ensure that innovation advances within a framework of transparency, responsibility and international coordination.

Against this complex backdrop, China and Europe have a unique opportunity to play a constructive and stabilizing role. In a polarized global environment, both share a strong interest in preserving openness, predictability and cooperation.

The European Union has developed extensive experience in building regulatory frameworks and international standards, particularly in areas such as digital governance, sustainable finance and environmental protection. Its strength lies in translating policy principles into practical rules.

China also has its role to play. Its industrial scale, capacity for innovation and ability to implement solutions at speed have made it a global leader in renewable energy, advanced manufacturing and digital infrastructure. These capabilities are critical for addressing challenges that require rapid deployment and long-term commitment.

By strengthening practical cooperation in areas such as green technologies, climate action, resilient supply chains and responsible AI governance, China and Europe can help reduce systemic risks and restore confidence in the global economy. Such cooperation does not eliminate competition. Rather, it ensures that competition takes place within a stable and predictable framework.

As Davos 2026 gets underway, the key question is no longer whether global risks are real — that is beyond doubt. The real test is whether major economies can move beyond fragmentation and exercise strategic leadership.

In a world of systemic risks, inaction is itself a decision, and often the most costly one. Stability today depends not on dominance, but on coordination.

Managing global risks has become the new infrastructure of development, security and prosperity. Through constructive engagement and pragmatic cooperation, China and Europe — working with partners across the international community — can help shape a more resilient, inclusive and sustainable future.

In an interconnected world, cooperation is not a concession. It is a strategic necessity.

The author is president of ChinaEU, a Brussels-based association that promotes China-Europe business cooperation in the digital area.

The views do not necessarily reflect those of China Daily.