China’s exports surged 25% in August from a year earlier, supported by strong overseas demand for automobiles, semiconductors and other high-tech products, according to the country’s customs agency.

The latest figures showed exports accelerating from the 23.9% annual increase recorded in July. Imports also grew strongly, rising 28.2% in August compared with a year earlier, up from 27.5% growth in July.

The stronger import figures reduced the gap between export and import growth but still left China with a trade surplus of $119.1 billion in August. That was an increase from the $112.5 billion surplus recorded in July.

The figures were released ahead of an expected meeting between US President Donald Trump and Chinese President Xi Jinping later this month. Beijing has not yet confirmed the exact date of Xi’s visit, but trade is expected to be among the main issues discussed by the two leaders.

China’s strong export performance has been supported by growing shipments of electric vehicles, industrial machinery and advanced technology products.

“China is very competitive in its tech goods exports,” said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management.

He said China had moved higher up the value chain in recent years and had become an important supplier of artificial intelligence infrastructure and industrial automation equipment.

Chinese exporters have also benefited from stronger trade with markets outside the United States. Rising shipments to Southeast Asia, Latin America and Africa have helped offset some of the pressure created by higher US tariffs.

The strength of China’s trade surplus has raised concerns in both the US and Europe. China’s annual trade surplus reached a record $1.2 trillion last year, prompting calls for greater access to the Chinese market and more balanced trade.

Lo said the strategic tensions between Beijing and Washington were likely to continue, particularly over sensitive goods. The US has restricted China’s access to some advanced technology, while Beijing has tightened controls on exports of certain rare-earth materials.

China and the European Union are also preparing for ministerial-level trade discussions later this year. The EU is seeking to reduce its trade deficit with China, which has reached roughly €1 billion a day.

European authorities have already introduced measures to protect domestic industries, including new restrictions affecting Chinese steel and tax treatment for small e-commerce parcels.

Despite the strong export figures, China’s domestic economy remains under pressure. Consumer spending and investment have been sluggish following years of weakness in the property sector.

Beijing announced on Sunday that it would inject around $54 billion into state banks and insurers as part of efforts to support economic growth.

The combination of strong overseas demand and weaker domestic activity is likely to keep China’s trade performance at the centre of economic and diplomatic discussions in the months ahead.

Turkey has raised its forecast for year-end inflation, with the government citing the economic impact of the ongoing conflict in the Middle East as a major factor behind the revision.

Vice President Cevdet Yilmaz announced on Sunday that inflation is now expected to reach 28.4% by the end of 2026. He made the announcement while presenting Turkey’s medium-term economic programme for 2027-2029.

“We expect inflation to start declining again in the fourth quarter of 2026 and to reach 28.4% by the end of the year,” Yilmaz said in a televised address.

The new projection represents a significant increase from the government’s previous target. Under last year’s medium-term programme for 2026-2028, officials had forecast year-end inflation at 16%.

The latest programme projects inflation will continue to decline after 2026, reaching 21% in 2027, 13.5% in 2028 and 9% in 2029.

Official figures showed Turkey’s annual inflation rate eased slightly to 31.51% in August from 31.75% in July. Despite the recent decline, inflation remains substantially above the government’s revised year-end target.

Yilmaz attributed much of the change in the outlook to the effects of the war in the Middle East, which has disrupted regional trade and contributed to increased economic uncertainty.

“According to our central bank, the direct and indirect effects of the war on inflation have been estimated at approximately seven percentage points,” he said.

Turkey has been battling elevated inflation for several years. Annual inflation has remained above 30% since December 2021, while the rate reached a peak of more than 75% in May 2024 before beginning a gradual decline.

The government continues to identify bringing inflation under control as the central objective of its economic programme.

Yilmaz said authorities had made significant progress through the policies introduced to address price pressures, pointing to the decline from the peak recorded in 2024.

“Inflation, which had risen to 75.5% in May 2024, has begun to show a clear downward trend as a result of the policies we have implemented,” he said.

The revised forecast highlights the challenges facing Turkey as it attempts to sustain disinflation while dealing with external shocks.

Officials are nevertheless maintaining their longer-term objective of bringing inflation into single digits by 2029. The government expects the rate to fall below 30% during 2026 and continue declining over the following three years as economic policies take effect.

The new medium-term programme will guide Turkey’s economic policy through 2029, with inflation control remaining a key priority as authorities seek greater price stability and stronger economic conditions.

EDF Energy is reportedly in talks to acquire So Energy’s customer base as the British energy market enters another period of consolidation.

The French-owned energy company is among several parties negotiating to buy the smaller UK supplier, according to Sky News. At least one other bidder is also understood to be involved in the process, although its identity has not been disclosed.

If EDF succeeds, the transaction is expected to focus mainly on So Energy’s customers rather than involve a full takeover of the company.

So Energy has about 300,000 household electricity customers and was established in 2015. Ireland’s Electricity Supply Board (ESB) acquired a controlling stake in the supplier in 2021.

ESB began reviewing its ownership of So Energy this summer and appointed PwC to oversee the sale process. The Irish utility has publicly confirmed that it is considering options for the business.

A So Energy spokesperson said in July that ESB had “initiated a process to evaluate potential divestment options for So Energy” following a strategic review. The company said ESB intended to focus on its core operations.

An acquisition by EDF would add to the continuing restructuring of Britain’s energy retail sector. The market was once dominated by a group of major suppliers, but companies such as Octopus Energy and British Gas owner Centrica have established stronger positions.

Other established suppliers, including ScottishPower, are also facing a more competitive market as customers increasingly move between providers.

Buying a customer portfolio can offer a quicker and less complicated route to expansion than purchasing an entire supplier. A successful deal would allow EDF to add hundreds of thousands of accounts while avoiding some of the costs and operational challenges associated with absorbing a complete business.

The potential transaction comes as British households continue to face pressure from energy costs.

Ofgem increased the domestic energy price cap by 4 percent for the autumn period, taking the annual figure for a typical household to £1,723. The increase means many households will face higher bills as energy companies reassess their strategies.

Government policy is also focused on reducing household costs. Prime Minister Andy Burnham announced plans during his first week in office to remove VAT from domestic energy bills as part of wider efforts to ease the cost-of-living burden.

The proposed So Energy transaction remains subject to negotiations, and no agreement has been reached. The outcome could add another significant change to Britain’s increasingly competitive energy retail market.