Xi's address at the World Economic Forum in Davos, a first by a Chinese leader, hinted at a potential shift in global politics amid the struggles of western democracies with rising populist nationalism. Despite being a communist state with strict restrictions on foreign investment, China surprisingly advocated for free markets at an event known for global capitalism. With Trump's protectionist stance and Europe dealing with its own issues, China sees an opportunity to take on a larger role in global economic leadership. Xi warned against protectionism in his speech, comparing it to isolating oneself in a dark room and emphasized that a trade war would benefit no one. Real estate tycoon and former reality TV personality Trump, who is set to become the U.S. president on Friday, campaigned on the promise to take a tougher stance on trade with China and either renegotiate or abandon multilateral trade agreements. His team has accused China of engaging in economic warfare against the U.S. However, Xi countered these allegations of unfair trade practices, stating that Beijing will not manipulate its currency for competitive advantage, despite Trump's repeated claims. Xi also called on all parties involved in the Paris climate agreement, which was reached about a year ago, to uphold their commitments, sending a clear message to Trump, who has criticized the deal and suggested pulling the U.S. out of it. In a demonstration of China's aspirations, several high-ranking Chinese officials accompanied Xi to the World Economic Forum in Davos, Switzerland, forming a larger and more distinguished delegation than in previous years. Many of the panels at WEF are focusing on Asia, with one titled "Asia Takes the Lead". Klaus Schwab, founder and chairman of WEF, stated that in a world of uncertainty, China is being looked to as a leader before welcoming Xi to the stage. Former Swedish Prime Minister Carl Bildt commented on Xi's speech on Twitter, noting that Xi is aiming to fill the global economic leadership vacuum with some success. Ian Bremmer, president of Eurasia Group, tweeted that the reaction to Xi's speech at Davos was successful in all aspects. Xi's appearance is a departure from previous official Chinese speeches, coming at a time of heightened tensions between Beijing and Trump over issues such as the president's phone call with Taiwan and the "One China" policy. Despite Xi's portrayal of China as an open economy, the government has faced criticism for restricting foreign investments while state-run firms pursue acquisitions in Europe. In response to these criticisms, China's cabinet announced plans to ease limits on investment in financial institutions prior to Xi's speech. No specific details or timeline were given for the implementation of the plans. Some officials, who chose to remain anonymous, suggested that China may be positioning itself to capitalize on the increasing rift between the United States and Europe. Bob Moritz, global chairman of PricewaterhouseCoopers, expressed uncertainty about China's future direction and negotiating strategy, emphasizing the need to monitor their actions closely in the coming year. Concerns about a severe economic downturn in China caused turbulence in global markets at last year's WEF meeting. While these worries have lessened, the IMF has recently cautioned about persistent risks to China's economy, such as heavy dependence on government spending, extensive lending by state banks, and a booming property market. President Xi attempted to provide reassurance by stating that the economy has transitioned to a "new normal" focused on household consumption. Despite a sluggish global economy, he projected a 6.7 percent growth for China in 2016. However, some economists at Davos are still exercising caution. Kenneth Rogoff, an economist at Harvard University, stated that China remains a major risk, but it is not currently at the top of the list due to the high level of uncertainty in the United States.