Russian President Vladimir Putin bagged the first slot for his tough policy towards Ukraine followed his US counterpart Barack Obama.
Xi's third rank this year is a big jump from last year's ninth position though his predecessor Hu Jintao got the first slot in 2010 Forbes list.
Chinese analysts believe Xi's ranking on the list reflects the expanding influence of China over the Western world.
Considered the most powerful Chinese leader since Mao, the Forbes' report said Xi is the country's leader, the head of its Communist Party and its military since taking office two years ago.
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It also said that Xi is currently leading an unprecedented anti-corruption campaign in China, as well as reforms in Chinese market economy and judicial system.
Cai said that China has reached a critical stage in its development, facing challenges of unsolved problems accumulated over the past 30 years of China's reform and opening-up policies.
"What Xi is doing is of great importance," he added.
Chinese Premier Li Keqiang joins Xi on the list in 13th spot.