Xi's address at the World Economic Forum in Davos, a first by a Chinese leader, indicated a potential change in the global political landscape as western democracies face challenges with the rise of populist nationalism. Despite being a communist state with strict limitations on foreign investment, China surprisingly advocated for free markets at the event, which is known for global capitalism. With Trump's protectionist stance and Europe dealing with its own issues like Brexit and terror attacks, China sees an opportunity to step in as a leader in global economics. Xi warned against protectionism, comparing it to isolating oneself in a dark room and emphasized that nobody would benefit from a trade war. Real estate magnate and former reality television personality Trump, set to become the U.S. president on Friday, ran his campaign promising to take a tougher stance on trade with China and either renegotiate or abandon international trade agreements. His team has accused China of engaging in economic warfare against the U.S. However, Xi refuted these claims of unfair trade practices, stating that Beijing would not manipulate its currency for competitive advantage, as Trump has alleged in the past. Xi also called on all countries involved in the Paris climate agreement, signed about a year ago, to uphold their commitments, a direct message to Trump, who has criticized the agreement and hinted at withdrawing the U.S. from it. In a show of China's global aspirations, several high-ranking Chinese officials accompanied Xi to the World Economic Forum in Davos this week, a larger and more prestigious delegation than in previous years. A significant number of World Economic Forum panels are focused on Asia, with one titled "Asia Takes the Lead." Klaus Schwab, the founder and chairman of WEF, stated that in a world of uncertainty and volatility, all eyes are on China. Former Swedish Prime Minister Carl Bildt commented on Xi's speech on Twitter, noting that Xi Jinping is positioning himself to take on a global economic leadership role. Ian Bremmer, president of Eurasia Group, tweeted that the reaction to Xi's speech at Davos was overwhelmingly positive. Xi's appearance is a significant departure from previous Chinese speeches, coming amidst escalating tensions between Beijing and Trump. In response to Trump's recent comments about the "One China" policy, Chinese newspapers warned of potential retaliation if he did not change his stance. 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. To address these concerns, China's cabinet announced plans to relax limits on investment in financial institutions. However, no additional information was given and there was no set timeline for when these changes would be implemented. Some officials, who chose to remain anonymous, suggested that China may be trying to capitalize on the growing rift between the United States and Europe. Bob Moritz, global chairman of PricewaterhouseCoopers, expressed uncertainty about China's future actions and whether they will focus more on regional or global matters in negotiations. He emphasized the need to closely monitor China's actions over the next year. Concerns about a severe economic downturn in China caused turmoil in global markets at last year's WEF meeting. Although these fears have diminished, the International Monetary Fund cautioned on Monday about persistent threats to the Chinese economy, such as its heavy dependence on government expenditures, extensive lending by state-owned banks, and a housing market at risk of overheating. President Xi attempted to reassure by stating that the economy is transitioning to a "new normal" driven by consumer spending. Despite a slow global economy, he projected China's economy to have expanded by 6.7 percent in 2016. However, some economists at Davos remain wary. Kenneth Rogoff, an economist at Harvard University, stated that China remains a significant risk, but it is not at the top of the list due to the high level of uncertainty in the United States.