Xi's address at the World Economic Forum in Davos, which was the first by a Chinese leader, signaled a potential shift in the global political landscape amid the struggle of western democracies with populist nationalism. China, a communist state with strict limits on foreign investment, may seem an unlikely advocate for free markets at an event associated with global capitalism. However, with Trump's protectionist stance and Europe dealing with issues like Brexit and terrorism, China sees an opportunity to step into a possible void in global economic leadership. Xi, speaking to a diverse audience that included U.S. Vice President Joe Biden, compared protectionism to isolating oneself in a dark room and emphasized the negative consequences of a trade war. Real estate mogul and former reality TV star Trump, who is set to become the U.S. president on Friday, ran his campaign promising to take a tougher stance on China in trade negotiations and reconsider or terminate multilateral trade agreements. Trump's team has accused China of engaging in economic warfare against the U.S. However, Xi refuted these claims of unfair trade practices and stated that China would not manipulate its currency for competitive advantage, as Trump has alleged in the past. Xi also encouraged all countries that signed the Paris climate deal to uphold their commitments, which was seen as a direct message to Trump, who has criticized the agreement and hinted at withdrawing from it. China's growing influence was highlighted as over half a dozen senior Chinese government officials accompanied Xi to Davos in Switzerland, a larger and more prestigious delegation than in previous years. Many panels at the WEF are focusing on Asia, including one called "Asia Takes the Lead". Klaus Schwab, founder and chairman of the WEF, mentioned the world's interest in China due to uncertainty and volatility before introducing Xi Jinping. Former Swedish Prime Minister Carl Bildt commented on Xi's speech on Twitter, noting Xi's attempt to fill the void in global economic leadership. Ian Bremmer, president of Eurasia Group, tweeted that the reaction to Xi's speech at Davos was successful in all aspects. Xi's appearance marks a significant departure from previous Chinese speeches. Tensions are rising between Beijing and Trump, particularly after Trump's recent phone call with the president of Taiwan. Trump's comments about renegotiating America's "One China" policy have angered Chinese officials, prompting warnings of a stronger response if his rhetoric does not change. Despite Xi's portrayal of China as an open economy, criticism has been mounting over its restrictions on foreign investments while state-run firms are actively acquiring European companies. As a response to these criticisms, China's cabinet announced plans to relax investment limits in financial institutions ahead of Xi's speech. No additional information was given, and there was no set timeline for when the plans would be put into action. Some officials, speaking anonymously, suggested that China may be trying to benefit economically from the growing rift between the United States and Europe. Bob Moritz, global chairman of PricewaterhouseCoopers, expressed uncertainty about China's future direction and negotiation tactics, stating that it is something to monitor closely over the next year. Concerns about a severe economic downturn in China caused disruption in global markets at the previous year's WEF meeting. While these worries have lessened, the IMF cautioned on Monday about persistent threats to the Chinese economy, such as heavy dependence on government expenditures, extensive lending by state-owned banks, and a booming real estate sector. President Xi attempted to provide confidence by stating that the economy was transitioning to a "new normal" driven by consumer spending. Despite a sluggish global economy, he projected that China's economy had likely expanded by 6.7 percent in 2016. However, some economists at Davos remained cautious about the situation. Kenneth Rogoff, an economist at Harvard University, stated that China remains a major concern and the only reason it is not the top priority is due to the high level of uncertainty in the United States.