Economy
Erdoğan urges greater intra-Islamic trade, finance cooperation
President Recep Tayyip Erdoğan on Friday highlighted the Muslim world’s underperformance and untapped economic potential, urging for greater intra-Islamic cooperation in trade, finance and investment.
Addressing delegates at the 2nd Global Islamic Economy Summit in Istanbul, Erdoğan emphasized the disparity between the Muslim world’s demographic weight and its economic clout.
“Muslims account for 25% of the world’s population, yet Islamic finance assets total only about $2.5 trillion,” he told the event organized by the AlBaraka Forum for Islamic Economy at the Istanbul Financial Center (IFC).
“The Organisation of Islamic Cooperation (OIC), which is the largest international organization after the United Nations, consists of 57 member countries. However, their share in global trade is only around 11%,” Erdoğan said.
“In terms of population, we represent 25% of the world, yet our contribution to the global economy is approximately 9%.”
These figures, according to Erdoğan, reflect underperformance compared to the potential of the Islamic world. “As the Islamic world, we must maximize our trade, investment, financial cooperation and collaboration opportunities,” he added.
Erdoğan went on to reiterate his opposition to interest-based systems, while saying Ankara was determined to press on with its current economic program until all of its goals are achieved.
Under the program, launched in mid-2023, the Central Bank of the Republic of Türkiye (CBRT) had tightened its benchmark policy to contain inflation, which dipped to below 38% in April, from as high as 75% last May.
‘Longing ‘ for interest-free economy
Erdoğan said work must be done to change and find alternatives to what he called an interest rates-based economic system, and added such a system cannot be viewed as legitimate.
“I have always opposed the distorted system that deepens inequalities, disrupts income justice, and turns billions of people into the slaves of a handful of capitalists. I oppose it again. I have often said that, no matter what, we cannot view as legitimate interest rates and an economic system based on interest rates,” Erdoğan said.
“I will continue to voice my longing for an interest rate-free economy from now on too. We will not turn back from our battle for the economic order based on interest rates to change,” he added.
The president also vowed to continue implementing the economic agenda drafted by his treasury and finance minister, Mehmet Şimşek, in order to chart a path of disinflation.
“We are determined to implement our economic program, with which we have made noteworthy progress over the past two years, until it reaches its goals,” Erdoğan said, and added that the end goal was to achieve single-digit inflation.
Current system ‘cannot be sustained’
The president went on to say it is increasingly evident that there is a growing need for alternative paradigms across all sectors. In economics, particularly in finance, there is a rising demand for a human-centered, fair, compassionate and responsible approach, he noted.
“One undeniable truth has become clear to everyone: the current global economic system, with its flawed structure that prioritizes consumption and profit maximization, continues to sideline human values, exacerbate inequalities and promote growth without productivity,” said Erdoğan.
Instead of developing effective solutions to support economic development, he argued that the existing system conceals fundamental issues with superficial measures.
“Many experts and thinkers who have correctly analyzed the current situation assert that the system, in its current form, cannot be sustained any longer.”
Erdoğan underscored Türkiye’s ambitions to position Istanbul as a global Islamic finance hub, pointing to initiatives under the Istanbul Financial Center framework as evidence of the country’s commitment.
“The collaborations we have initiated under the Istanbul Financial Center serve as a concrete testament to our efforts to integrate into the global economy while preserving our Islamic values,” he said.
The president stressed that Türkiye attaches great importance to the development of participation finance centered in Istanbul.
“Its unique location, accumulated expertise and potential provide substantial advantages to both Istanbul and the Istanbul Financial Center. With the dedicated efforts of our institutions and authorities, I hope we can transform these advantages into lasting achievements,” he added.
Islamic finance law
Also addressing the summit, Şimşek said Türkiye is actively working on a new Islamic finance law, aiming to pass it through Parliament as part of broader efforts to strengthen the country’s participation-based financial system.
Şimşek underlined the increasing importance of Islamic finance in tackling global economic challenges. He noted the sector’s potential to offer a fairer, risk-sharing and asset-backed financial model, especially in today’s uncertain global landscape.
“We are currently finalizing the Islamic finance law and preparing to introduce it to Parliament,” he said. “We are carefully reviewing the draft to avoid including provisions that may cause implementation issues or hinder sectoral acceptance.”
Şimşek emphasized that Islamic finance, with its focus on sustainability, real-economy backing and inclusive access, presents a credible alternative for promoting shared prosperity.
“The Islamic finance model stands out today because it emphasizes equitable participation, financial inclusion and sustainable growth,” he said.
Şimşek pointed out that Islamic finance currently represents just over 1% of global financial assets but has witnessed rapid growth in both market value and presence.
However, he noted that much of this growth remains geographically concentrated, and that challenges such as regulatory gaps, talent shortages and a lack of global innovation investment persist.
“The key players in this field are not investing in this innovation on a global scale. At the same time, there is a lack of talent and significant gaps in the regulatory framework,” said the minister.
“Important progress has been made in recent years, but we are still facing major structural challenges that need to be overcome. Only if we can clearly identify the factors causing us to lag behind will we be able to develop effective solutions,” he added.
Islamic finance in Türkiye
Türkiye currently has nine participation banks, with Islamic finance holding an 8.3% share of the national banking system.
Şimşek said this figure remains far below its true potential.
“Participation finance in Türkiye has reached a significant share within the banking sector. The markets, particularly in terms of participation-based financing instruments, are showing development,” he said.
“However, currently, participation banks account for only 8.3% of the Turkish banking system, which is far below its potential and clearly indicates the need for broader-scale growth.”
He stressed the government is mobilizing all its resources to ensure the healthy growth of the sector, citing Türkiye’s recent ranking in the top 10 of the Global Islamic Finance Development Index among 136 countries.
He also emphasized that the Treasury continues to emphasize sukuk issuances both locally and internationally.
Şimşek went on to emphasize that prosperity should be shared fairly, and said they see Islamic finance as playing a crucial role in this process.
“Although it currently holds a relatively small share in the global financial system, summits and international conferences in this field significantly accelerate its development,” he said.
“The rapid growth of Islamic finance in recent years is remarkable. Previously almost invisible, it now represents approximately 1% of global financial assets. We should see this as a springboard,” he added.
“By recognizing existing issues at both local and global levels, taking the right steps, improving efficiency and fostering strong collaborations, we can increase this share to 2% or even 5% in a much shorter time frame.”
The Global Islamic Economy Summit focuses on empowering Islamic financial and non-financial institutions to help achieve their goals of sustainable growth and leave an impact on the global economy via new strategies.
The two-day event has been organized in collaboration with Türkiye’s Investment and Finance Office, the Istanbul Financial Center (IFC), Albaraka Türk, Ibn Haldun University and the Islamic Cooperation Youth Forum (ICYF).
The summit is focused on increasing operational efficiency, encouraging innovation, strengthening risk management, promoting financial participation and supporting cooperation among industry stakeholders by developing a deeper understanding of Islamic principles.
High-level discussions on the integration of Islamic economic principles are expected at the summit.
“We look to create new roads, not just to walk on new roads. We are creating in Istanbul, Medina, London, Kuala Lumpur, Karachi, Cairo and many others,” Yousef Hassan Khalawi, the secretary-general of the AlBaraka Forum for Islamic Economy, said at the opening ceremony.
As part of the Islamic ecosystem, more and more initiatives should be created, he added.
Human-centered alternative
Addressing the event, Bilal Erdoğan, chair of the board of trustees of Türkiye’s Ilim Yayma Foundation, said Islamic economics is not just an interest-free financial model but a moral, justice-based and human-centered way of life that offers an alternative paradigm for the world.
The widespread information gap surrounding Islamic finance remains a key concern remains, even in Türkiye, where it accounts for around 8% of the financial sector, said Erdoğan.
Many people, he noted, reduce Islamic finance to an interest-free tool, failing to understand its foundational values.
“It is not really only about an interest-free way of reaching finance. It is actually a potential alternative paradigm for humanity,” he said. “It is actually a potential alternative paradigm for humanity.”
He also criticized Islamic financial institutions in Türkiye for being overly cautious in their approach and lacking effective communication strategies.
“How do we frame our products? How do we try to make sure that people realize that there are these ways of doing similar things as well?” Erdoğan said, urging a stronger focus on Islamic finance’s unique features, particularly its principles of partnership and participation.
He added that millions of people around the world remain outside the banking system not due to exclusion, but because the system itself has “lost its humanity.” Islamic finance, he said, should aim to integrate these individuals by “uplifting them with the dignity that it offers.”
Addressing the humanitarian crisis in Palestine, he added: “I am hoping for once this genocide will come to an end.”
Economy
Climate change drives up global food prices, adds to societal risks
Extreme weather patterns and events resulting from climate change are causing the prices of food products, such as coffee, cocoa and rice, to rise in various countries and regions around the world, according to a report released on Thursday, citing a recently published study.
The increase in temperature and extreme weather events, such as floods and storms, caused by climate change, also affect agricultural activities and threaten food security.
In July, scientists from various research institutes in Europe conducted a study titled “Climate extremes, food price spikes and their wider societal risks.”
In the study, which examined the impact of climate change on food prices, scientists compiled reports highlighting the rise in food prices across different countries due to climate extremes.
According to the study, agricultural products affected by climate change vary according to their geographical location.
The severe droughts experienced in Southern Europe during 2022-2023 led to a 50% increase in olive oil prices across the European Union as of January 2024. Moreover, at the beginning of 2024 in the U.K., potato prices rose by 22% due to rainy weather conditions.
In East Asia, the heat waves in 2024 led to extreme temperatures in almost all of South Korea and Japan, as well as large areas of China and India. These extreme weather events increased the price of Korean cabbage by 70% in September 2024 compared to the same month the previous year. Japanese rice also rose by 48% during the same period. Additionally, vegetable prices in China increased by 30% in June and August.
Impact on various crops
In Vietnam, after the heat wave in February 2024, robusta coffee prices doubled by July. Similarly, in Indonesia, following the drought in 2023, rice prices increased by 16%.
And in Pakistan, food prices in rural areas rose by 50% within weeks following the devastating floods in August 2022. In neighboring India, following the heat wave in May 2024, onion and potato prices surged in the second quarter of the year. During this period, onion prices increased by 89% and potato prices by 81%.
In Australia, the floods in 2022 caused lettuce prices to rise. During this period, lettuce prices increased by staggering 300%.
After the heat wave in March 2024 in South Africa, corn prices rose by 36% in April. The 2022 drought in Ethiopia also had an adverse impact on food prices. Following the drought, food prices increased by 40% in March 2023.
At the same time, back in 2022, drought in the American states of California and Arizona, which provide over 40% of the national vegetable production, severely affected vegetable production. As of November 2022, vegetable prices in the U.S. increased by 80% in one year.
Following the 2023 drought in Mexico, there was a 20% increase in fruit and vegetable prices at the beginning of the following year.
Coffee, cocoa prices
Climate extremes not only caused price increases locally but also increased the global market prices of major food commodities such as coffee and cocoa.
The 2023 drought in Brazil, the world’s largest coffee producer, led to price increases. Global coffee prices rose by 55% in August 2024.
In Ghana and Ivory Coast, which account for about 60% of global cocoa production, extreme heat in February 2024 and ongoing prolonged drought from the previous year affected global cocoa prices. Cocoa prices increased by about 300% in one year as of April 2024.
Affecting numerous crops and spreading globally, the climate-induced surge in food prices can trigger various societal risks.
Increasing food prices, particularly for low-income households, significantly affects their food security. Such households may become less resistant to diseases due to inadequate nutrition, adding additional burdens to the health care system and increasing public expenditures.
Moreover, increases in food prices lead to a rise in overall inflation, posing significant risks for developing countries where the share of food prices in inflation is high.
Economy
Consortium with Turkish firms inks $4B deal to develop Damascus Airport
A five-company consortium led by Qatar’s UCC Holding and comprising three Turkish firms signed a $4 billion deal on Wednesday with the Syrian Civil Aviation Authority to develop and expand Damascus International Airport.
The deal was one of several agreements signed in Damascus during a ceremony attended by Syrian interim President Ahmed al-Sharaa, worth $14 billion, including infrastructure, transportation and real estate projects aimed at reviving the war-damaged economy.
Turkish companies Kalyon Holding, Cengiz Holding and TAV Construction, along with UCC Holding and Assets Investments from the U.S., will be involved in redeveloping Damascus International Airport, aiming to raise its annual passenger capacity to 31 million within eight years, an Anadolu Agency (AA) report said.
The deal marks one of the largest infrastructure projects in Syria in years, despite the country’s prolonged instability following more than a decade of civil war and the wider impacts of the second year of Israel’s genocidal war on Gaza and regional conflicts.
According to a statement from Kalyon Holding, the companies involved have carried out global-scale investments in energy, infrastructure and transportation both in Türkiye and abroad.
The new airport deal follows a $7 billion strategic cooperation agreement signed last May between the Syrian Ministry of Energy and the same core consortium, including Kalyon Holding, Cengiz Holding, UCC from Qatar and Power International from the U.S.
The agreement includes a 5,000 megawatt (MW) energy project, expected to generate approximately 35 billion kilowatt-hours (kWh) annually, supplying a significant share of Syria’s electricity needs.
‘To leave a legacy’
Chairperson of the board of Kalyon Construction, Murathan Kalyoncu, said the new airport deal reflects the group’s commitment to long-term regional development.
“As a domestic and national company, we have focused on people in every region we have operated in for 81 years and aim to leave a legacy for future generations,” he said.
“We successfully completed the construction of Istanbul Airport, Türkiye’s largest infrastructure project, in a record 42 months with a consortium including Cengiz Holding. We then elevated the airport to a global leadership position as a hub with an annual passenger capacity of 90 million.”
“Now, I wholeheartedly believe that with our management experience, engineering strength, technical competence and solution-oriented approach, we will make significant contributions to Damascus’s transformation into a regional air transportation hub,” Kalyoncu added. “I hope the massive investments we have undertaken will mark a turning point for Syria and provide significant support for regional development and stability.”
Alongside the airport investment, Syria signed a series of investment memoranda worth $14 billion on Wednesday, covering 12 strategic projects with several foreign firms.
Talal al-Hilali, director of the Syrian Investment Authority, said the agreements include a $4 billion deal with Qatar’s UCC Holding for the Damascus International Airport project, a $2 billion agreement with the UAE’s national investment corporation to build a metro line in Damascus, and a $2 billion contract with Italy-based UBAKO to develop Damascus Towers.
In July, Syria also signed $6.4 billion of investments with Saudi Arabia as it seeks to rebuild after years of civil war.
Economy
Slovenia bans imports from illegal Israeli settlements over Gaza crisis
The Slovenian government announced on Wednesday a ban on imports of goods from illegal Israeli settlements in the occupied West Bank, in a “symbolic measure” designed to ratchet up diplomatic pressure over the war in Gaza.
Slovenia’s government has frequently criticized Israel over the conflict and last year moved to recognize a Palestinian state as part of efforts to end the fighting in Gaza as soon as possible.
“The actions of the Israeli government … constitute serious and repeated violations of international humanitarian law,” the government said in a statement on Wednesday.
Slovenia “cannot and must not be part of a chain that enables or overlooks” such violations, it said, including the “construction of illegal settlements, expropriations, the forced evictions of the Palestinian population.”
The Slovenian government thus decided to “ban imports of goods originating from Israeli illegal settlements.”
Its latest move represents a “clear reaction to the Israeli government’s policy, which … undermines the possibilities for lasting peace and a two-state solution.”
“While symbolic,” the ban “is a necessary response to the ongoing humanitarian and security situation in Gaza,” Slovenia’s Foreign Minister Tanja Fajon said of the measure.
The government said that it was also examining a ban on exports of goods from Slovenia “destined for (the) illegal settlements,” saying that it would then “decide on further measures.”
According to the STA news agency, citing a government statement from January, Slovenia did not import any goods from Israeli settlements in 2022 and 2024, respectively.
In 2023, imports amounted to some 2,000 euros.
Early in July, Slovenia was the first EU country to ban two far-right Israeli ministers from entering the country.
It declared both Israelis “persona non grata,” accusing them of inciting “extreme violence and serious violations of the human rights of Palestinians” with “their genocidal statements.”
In June 2024, Slovenia’s parliament passed a decree recognizing Palestinian statehood, following in the steps of Ireland, Norway and Spain.
Economy
BoE cuts its main interest rate to 4%, lowest since early 2023
The Bank of England (BoE) lowered its main interest rate by a quarter percentage point to 4% on Thursday, as policymakers seek to bolster the sluggish U.K. economy.
Thursday’s decision was widely anticipated in financial markets as the bank’s Monetary Policy Committee (MPC) balances its responsibility to control inflation against concern that rising taxes and U.S. President Donald Trump’s global trade war may slow economic growth.
The committee voted 5-4 in favor of the cut.
The rate cut is the bank’s fifth since last August, when policymakers began lowering borrowing costs from a 16-year high of 5.25%. The Bank of England’s key rate – a benchmark for mortgages as well as consumer and business loans – is now at the lowest level since March 2023.
“There will be hopes that if loans become cheaper, it will help boost consumer and business confidence but there’s a long way to go,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said before the decision.
“In the meantime, speculation over potential tax rises in the Autumn Budget may keep households and companies cautious, given the uncertainty over where extra burdens may land.”
Policymakers decided to cut rates even though consumer prices rose 3.6% in the 12 months through June, significantly above the bank’s 2% target. The bank sees the recent rise in consumer prices as a temporary spike, due in part to high energy costs, and expects inflation to fall back to the target next year.
Against the backdrop, policymakers were faced with reports that the government may be forced to raise taxes later this year due to sluggish economic growth, rising borrowing costs and pressure to increase spending.
Britain’s unemployment rate rose to 4.7% in the three months through May, the highest level in four years, signaling that previous tax increases and uncertainty about the global economy are weighing on employers.
The U.K. economy grew 0.7% in the first three months of 2025 after stagnating in the second half of last year.
Economy
Higher US levies on dozens of countries come into effect
Higher U.S. tariffs imposed on dozens of economies came into effect on Thursday, raising the stakes in President Donald Trump’s wide-ranging efforts to reshape global trade.
As an executive order signed last week by Trump took effect, U.S. duties rose from 10% to levels between 15% and 41% for a list of trading partners.
Many products from economies including the European Union, Japan and South Korea now face a 15% tariff, even with deals struck with Washington to avert even steeper levies.
But others like India face a 25% duty – to be doubled in three weeks – while Syria, Myanmar and Laos face staggering levels at either 40% or 41%.
Taking to his Truth Social platform just after midnight, Trump posted: “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”
The latest tariff wave of “reciprocal” duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency.
But these higher tariffs do not apply to sector-specific imports that are separately targeted, such as steel, autos, pharmaceuticals and chips.
Chips tariffs
Trump said Wednesday he planned a 100% tariff on semiconductors – though Taipei said chipmaking giant TSMC would be exempt as it has U.S. factories.
Even so, companies and industry groups warn that the new levies will severely hurt smaller American businesses. Economists caution that they could fuel inflation and weigh on growth in the longer haul.
While some experts argue that the effects on prices will be one-off, others believe the jury is still out.
With the dust settling on countries’ tariff levels, at least for now, Georgetown University professor Marc Busch expects U.S. businesses to pass along more of the bill to consumers.
An earlier 90-day pause in these higher “reciprocal” tariffs gave importers time to stock up, he said.
But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told Agence France-Presse (AFP).
“With back-to-school shopping just weeks away, this will matter politically,” said Busch, an international trade policy expert.
Devil in the details
The tariff order taking effect Thursday also leaves lingering questions for partners that have negotiated deals with Trump recently.
Tokyo and Washington, for example, appear at odds over key details of their tariffs pact, such as when lower levies on Japanese cars will take place.
Washington has yet to provide a date for reduced auto tariffs to take effect for Japan, the EU and South Korea. Generally, U.S. auto imports now face a 25% duty under a sector-specific order.
A White House official told AFP that Japan’s 15% tariff stacks on top of existing duties, despite Tokyo’s expectations of some concessions.
Meanwhile, the EU continues to seek a carveout from tariffs for its key wine industry.
In a recent industry letter addressed to Trump, the U.S. Wine Trade Alliance and others urged the sector’s exclusion from tariffs, saying: “Wine sales account for up to 60 percent of gross margins of full-service restaurants.”
New fronts
Trump is also not letting up in his trade wars.
He opened a new front Wednesday by doubling planned duties on Indian goods to 50%, citing New Delhi’s continued purchase of Russian oil. But the additional 25% duty would take effect in three weeks.
Trump’s order for added India duties also threatened penalties on other countries that “directly or indirectly” import Russian oil, a key revenue source for Moscow’s war in Ukraine.
Existing exemptions still apply, with pharmaceuticals and smartphones excluded for now.
And Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup.
U.S. tariffs on various Brazilian goods surged from 10% to 50% but broad exemptions, including for orange juice and civil aircraft, are seen as softening the blow.
Still, key products like Brazilian coffee, beef and sugar are hit.
Many of Trump’s sweeping tariffs face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the U.S. Supreme Court.
Economy
Chinese shippers defy trade tensions as exports soar in July
China’s exports exceeded forecasts in July, as manufacturers capitalized on a fragile tariff truce between Beijing and Washington to ship goods, particularly to Southeast Asia, ahead of tougher U.S. duties targeting transshipment.
Global traders and investors are waiting to see whether the world’s two largest economies can agree on a durable trade deal by Aug. 12 or if global supply chains will again be upended by the return of import levies exceeding 100%.
U.S. President Donald Trump is pursuing further tariffs, including a 40% duty on goods rerouted to the U.S. via transit hubs that took effect on Thursday, as well as a 100% levy on chips and pharmaceutical products and an additional 25% tax on goods from countries that buy Russian oil.
China’s exports rose 7.2% year-on-year in July, customs data showed on Thursday, beating a forecast 5.4% increase in a Reuters poll and accelerating from June’s 5.8% growth.
Imports grew 4.1%, defying economists’ expectations for a 1.0% fall and climbing from a 1.1% rise in June.
China’s trade war truce with the U.S. – the world’s largest consumer market – ends next week, although Trump hinted that further tariffs may be imposed on Beijing due to its continued purchases of Russian hydrocarbons.
“The trade data suggests that the Southeast Asian markets play an ever more important role in U.S.-China trade,” said Xu Tianchen, senior economist at The Economist Intelligence Unit.
“I have no doubt Trump’s transshipment tariffs are aimed at China, since it was already an issue during Trump 1.0. China is the only country for which transshipment makes sense, because it still enjoys a production cost advantage and is still subject to materially higher U.S. tariffs than other countries,” he added.
China’s exports to the U.S. fell 21.67% last month compared to the same period a year earlier, according to the data, while shipments to the Association of Southeast Asian Nations (ASEAN) rose 16.59% over the same period.
The levies are bad news for many U.S. trading partners, including the emerging markets in China’s periphery that have been buying raw materials and components from the regional giant and furnishing them into finished products as they seek to move up the value chain.
China’s July trade surplus narrowed to $98.24 billion from $114.77 billion in June. Separate U.S. data released on Tuesday showed that the trade deficit with China shrank to its lowest level in more than 21 years in June.
Despite the tariffs, markets showed optimism for a breakthrough between the two superpowers, with China and Hong Kong stocks rising in morning trade. Trump indicated earlier this week that he might meet Chinese President Xi Jinping later this year if a trade deal was reached.
Trade uncertainty
China’s commodities imports painted a mixed picture, with soybean purchases hitting record highs in July, driven by bulk buying from Brazil while avoiding U.S. cargoes. Analysts, however, cautioned that inventory building may have skewed the import figures, masking weaker underlying domestic demand.
“While import growth surprised on the upside in July, this may reflect inventory building for certain commodities,” said Zichun Huang, China economist at Capital Economics, pointing to similarly strong purchases of crude oil and copper.
“There was less improvement in imports of other products and shipments of iron ore continued to cool, likely reflecting the ongoing loss of momentum in the construction sector,” she added.
A protracted slowdown in China’s property sector continues to weigh on construction and broader domestic demand, as real estate remains a key store of household wealth.
Chinese government advisers are stepping up calls to make the household sector’s contribution to broader economic growth a top priority at Beijing’s upcoming five-year policy plan, as trade tensions and deflation threaten the outlook.
Reaching an agreement with the U.S. and the European Union, which have accused China of producing and selling goods at too low a price, would give Chinese officials more room to advance their reform agenda.
However, analysts expect little relief from Western trade pressures. Export growth is projected to slow sharply in the second half of the year, hurt by persistently high tariffs, President Trump’s renewed crackdown on the rerouting of Chinese shipments and deteriorating relations with the EU.
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