IMF Chief calls for de-escalation of trade dispute

International Monetary Fund (IMF) Managing Director Christine Lagarde has addressed delegates at the start of the China International Import Expo. Lagarde said by transforming itself, China has also helped to transform the global economy. She also called on all countries to de-escalate and resolve the current trade dispute to fix the global system, and not destroy it. 

"To achieve these goals, we need more international cooperation, not less, and that goes well beyond the economics," added Lagarde.

The following is the full text of her speech:

President Xi, heads of state and governments, honored guests, friends, colleagues, business community, good morning, Zao Shang Hao!

Last night, when just like so many of you, I crossed the beautiful Huangpu River on Lupu Bridge. I was reminded of the talent of China to build bridges. Let me mention three of them. 

Bridge number one: 40 years ago, China started to build its "bridge to the world" by opening its economy and kickstarting reforms that have changed the lives and prospects of hundreds of millions of people here but also beyond China.

By transforming itself through trade, through hard work, also learning from others, China has helped transform not only itself, but also the global economy. Progress in this country has played a significant role in boosting productivity, boosting innovation, President as you said, and living standards in countries around the world.

Yes, there is always more work to be done. Because on that bridge, you don't want traffic jam, you don't want bottleneck and you don't want restricted traffic. So yes, there is room for even greater reform in the domestic market of China, which can help strengthen the global trade system. And there is scope for further reform that will help unleash the full potential of so many private-sector firms.

Bridge number two: China is building a "bridge to prosperity" by rebalancing its economy towards consumption-led growth as opposed to export- and investment-led growth.

Building that bridge is well underway. 

In the first three quarters of this year only, consumption contributed 78 percent of China's GDP growth, as opposed to 50 percent only five years ago. 

This transition, which is symbolized by the China International Import Expo, is good for China, but it is good for the world, including all those who see China as a vital and vibrant market for their goods and for their services.

Again, we can see the progress and rebalancing in the numbers: for example, China's current account is likely to be at just about 1 percent this year, compared with 10 percent 10 years ago.

Bridge number three: China is building a "bridge to the future" by harnessing the power of international cooperation, especially in trade.

On behalf of the IMF, I have called all parties, all parties, to de-escalate and resolve the current trade disputes and to fix the global trade system, not destroy it. To achieve these goals, we need more international cooperation, not less, and that goes well beyond the economics.

I want to quote here one of our French philosophers Montesquieu who said "wherever there is good citizenship, there is trade. Wherever there is trade, there is good citizenship."

So in other words, trade has the capacity to boost innovation, to encourage prosperity but also peace within countries and between nations. 

So in Shanghai, the city of 12 bridges, I will only mention three, but this is where we need to start, this cooperation towards more peace and more prosperous future, thank you.