Xi's address to political leaders, CEOs, and bankers at the World Economic Forum in Davos was the first of its kind by a Chinese leader. This event could potentially signify a change in the global political landscape as western democracies grapple with the surge of populist nationalism. Despite being a one-party communist state with strict limitations on foreign investment, China, unexpectedly, appeared to support free markets at an event known for global capitalism. With Trump advocating for protectionism and Europe dealing with issues like Brexit and terror attacks, China sees an opportunity to step in as a potential leader in the global economy. During his speech, Xi compared protectionism to being locked in a dark room without any light or air, emphasizing that no one would benefit from a trade war. The speech, which lasted nearly an hour, was delivered in front of a large audience that included U.S. Vice President Joe Biden. Real estate tycoon and former reality TV personality Trump, who is set to become the U.S. president this Friday, ran his campaign on the promise of taking a tougher stance on trade with China and either renegotiating or abandoning international trade agreements. His team has accused China of engaging in economic warfare against the U.S. However, Xi responded by rejecting the claims of unfair trade practices, stating that China would not manipulate its currency for competitive advantage, as Trump has alleged in the past. Xi also called on all countries that signed the Paris climate agreement about a year ago to uphold their commitments, a direct message to Trump, who has criticized the deal and hinted at withdrawing the U.S. from it. China's strong presence at Davos this year, with several high-ranking government officials accompanying Xi, demonstrates the country's growing influence and ambitions on the global stage. A significant number of WEF discussions are centered on Asia, with one titled "Asia Takes the Lead." Klaus Schwab, the founder and chairman of WEF, mentioned that in a world full of uncertainty, China is being looked to for leadership. Former Swedish Prime Minister Carl Bildt commented on Xi's speech on Twitter, noting that Xi Jinping seems to be aiming 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 successful in all aspects. Xi's appearance, which was a departure from previous official Chinese speeches, comes as tensions between Beijing and Trump are on the rise. Trump's recent actions, such as accepting a call from the president of Taiwan and questioning America's "One China" policy, have prompted strong reactions from Chinese media. Despite Xi's portrayal of China as an open economy, criticism has mounted over its restrictions on foreign investments while state-run firms are making aggressive acquisitions in Europe. In response to these concerns, China's cabinet announced plans to relax limits on investment in banks and other financial institutions ahead of Xi's speech. However, no further information was given and there was no schedule for when these plans would be put into action. Some officials, who chose to remain anonymous, suggested that China may be trying to take advantage of the growing rift between the United States and Europe for economic gain. Bob Moritz, the global chairman of PricewaterhouseCoopers, expressed uncertainty about China's future actions in the global arena, questioning whether they will focus more on regional or global matters in negotiations. This is a development that will need to be monitored closely in the coming year. Concerns about a severe economic downturn in China impacted global markets at last year's WEF meeting. While these worries have lessened, the IMF cautioned on Monday about continued risks to the Chinese economy, such as heavy dependence on government spending, extensive lending by state banks, and a property market at risk of overheating. Xi attempted to provide reassurance by stating that the economy was transitioning to a "new normal" driven by household consumption. Despite a slow global economy, he claimed that China's economy likely grew by 6.7 percent in 2016. However, some economists in Davos still remain wary. Kenneth Rogoff, an economist at Harvard University, stated that China remains one of the largest risks, but is not at the top of the list due to the United States being a major source of uncertainty.