As part of ongoing trade discussions, China and the European Union are preparing for a summit next month to mark 50 years of diplomatic relations, focusing on key trade issues.

Lagarde concluded her remarks by urging nations to learn from history to foster a new map of global cooperation and prevent damaging escalations in trade tensions.

Lagarde highlighted the importance of maintaining a multilateral framework for international trade, which has historically benefited economies worldwide.

While not naming any individuals, she warned that the potential return of certain political figures could reintroduce tariffs affecting Europe, significantly altering trade dynamics.

Christine Lagarde, president of the European Central Bank, is currently in Beijing for meetings with the People's Bank of China, focusing on trade relations.

During her visit, Lagarde emphasized that coercive trade policies do not resolve global imbalances and called for cooperative solutions to avoid escalating tensions.

She urged both surplus and deficit countries to take responsibility in trade relations, asserting that protectionism is not a sustainable solution.

Lagarde stressed the importance of preserving cooperation in a world facing fragmentation after decades of globalization, highlighting significant advancements by low-income countries, particularly China.

In her speech, she acknowledged the growing difficulties in international cooperation amid rising trade tensions and geopolitical complexities.

She noted that trade restrictions have tripled since 2019, driven by geopolitical concerns and perceptions of unfair trade practices.

Lagarde described the current trade environment as characterized by unprecedented tariff levels, reflecting geopolitical realignment.

She identified two critical lessons from economic history: one-sided adjustments often fail to resolve global frictions, and strong alliances are essential to prevent escalation into protectionism.