The world economic forum at Davos in Switzerland will be a great opportunity for China to demonstrate its leadership at a time of great global uncertainty resulted from unpredictability of newly elected American President Donal Trump and the backdrop of Brexit, said an economist at a London think tank.

Alan Wheatley, associate fellow for international economics at Chatham House

President Xi Jinping will be taking centre stage at the annual meeting – the first such appearance by a Chinese head of state. He is expected to deliver a keynote speech and highlight Chinese proposals to improve global governance and revive the world's economy at the conference.

Alan Wheatley, associate fellow for international economics at Chatham House, said "This is a great opportunity for President Xi to explain and to set out what China stands for, by doing so to demonstrate China will continue to be a source of strength for the global economy and a source of predictability and stability."

With Trump is set to assume office as American President this week, Wheatley said there is a possibility that the Trump administration might take measures directly against China, such as accusing China of manipulating the RMB, and to imposing tariffs on some Chinese products.

For China to be a responsive and responsible leader, he suggested China should resist the temptation to take aggressive retaliatory measures against USA, "because it will be hurting itself and hurting dozens of other countries that depend on Chinese growth and open Chinese market."

"Keeping the global trading system as open as possible is in the interest of China and is also in the interest of the world. By taking the responsible attitude to whatever provocations might come from the Trump administration, China will be sending a powerful message to Europe and the rest of the world, that China is a trusted partner," Wheatley said.

He credits President Xi's "the Belt and Road" initiative, saying it is a concrete example how China will be promoting growth and globalisation, not just by words but by actions, as infrastructure is the sinews of the economy.

Wheatly thinks the important thing President Xi needs to do at Davos is to convey the confidence.

"He can reassure people that China is aware of the problems that it faces as it makes its transition to consumption-led economy, such as keeping the housing market balanced and allowing the RMB to keep depreciating in a controlled and measured manner."

He believes the Chinese authority deserves credit for not using the strong dollar excuse to permit a sharp fall in the RMB.

"Instead China spent its reserves to break and slow the decline, and I think that's a very responsible act," he said.

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