Egypt and China Forge Deeper Economic Ties
Egypt and China are witnessing an unprecedented surge in their business relations, cemented by high-level diplomatic engagements and a shared vision for robust economic collaboration across a multitude of sectors.
The intensified partnership was underscored by Chinese Premier Li Qiang's recent two-day official visit to Egypt (July 9-10), where he engaged in pivotal discussions with Egyptian President Abdel Fattah El-Sisi, Prime Minister Mostafa Kamal Madbouly, and Speaker of the House of Representatives Hanafy Ali Gebaly. These meetings served to re-affirm both nations' unwavering commitment to strengthening their comprehensive strategic partnership.
A cornerstone of the recent dialogues was the deepening of "high-quality Belt and Road cooperation." Both Cairo and Beijing expressed a strong readiness to strategically align China's ambitious Belt and Road Initiative (BRI) with Egypt's Vision 2030, a move anticipated to foster shared development and pave the way for a "China-Egypt community with a shared future."
Economically, the focus remains firmly on facilitating two-way trade and investment. Premier Li Qiang advocated for consistent efforts to boost industrial alignment and enhance market connectivity. The Suez Canal Economic Zone (SCZone) continues to be a magnet for Chinese capital, with an impressive 150 to 185 Chinese companies already established, drawing approximately $3 billion in Chinese investment – nearly 40% of Egypt's total foreign direct investment in recent years. Chinese firms are actively contributing to a diverse range of sectors, including textiles, construction, electronics, auto parts, building materials, petrochemicals, and new energy. This robust engagement has propelled bilateral trade to approximately $15.7 billion in early 2024, a significant jump from $11.9 billion in 2022.
In a move set to bolster financial collaboration, the People's Bank of China (PBOC) and the Central Bank of Egypt signed a Memorandum of Understanding on July 10, 2025. This agreement aims to foster settlement in local currencies, enhance the connectivity of payment and settlement systems, and promote cooperation in investment and financing across financial markets.
Both nations are also aggressively pursuing expansion into new and emerging fields. The "New Energy" sector is a key highlight, encompassing solar panel production and significant contributions to large-scale renewable energy projects like the Benban Solar Park. Egypt is actively inviting Chinese partnerships for the establishment of Electric Vehicle (EV) factories and mobile-phone assembly plants. The digital economy and Artificial Intelligence (AI) are also seeing substantial collaboration, with a joint investment fund of $300 million established to back AI and chip technologies, positioning Egypt as a burgeoning regional digital hub. Companies like Huawei and ZTE are already embedded in Egypt's digital and communications landscape. Furthermore, the "Blue Economy," leveraging marine resources, is a burgeoning area of mutual interest.
China remains an indispensable partner in Egypt's ambitious mega infrastructure projects. Chinese firms, notably China State Construction Engineering Corporation (CSCEC), are deeply involved in the New Administrative Capital (NAC), with CSCEC formally taking over the operation, maintenance, and management of the new central business district in June 2025. A Chinese-Egyptian consortium is also at the forefront of constructing Egypt's inaugural high-speed rail lines, part of a planned 2,000-kilometer network, including a notable $10 billion electric train connecting Cairo to the NAC. Chinese companies are also playing a crucial role in modernizing and expanding Egyptian ports.
Beyond bilateral engagements, both nations are committed to closer coordination within multilateral frameworks, including the United Nations, BRICS (which Egypt joined in 2024), and the Shanghai Cooperation Organization (SCO). This collaborative approach aims to uphold multilateralism and effectively address global challenges.
Finally, efforts are underway to foster stronger people-to-people exchanges, encompassing cooperation among youth, think tanks, universities, and in the tourism sector. These initiatives are designed to cultivate broader public support for the enduring friendship between Egypt and China.
In essence, the economic relationship between Egypt and China is not merely transactional; it is deeply strategic, driven by a shared development vision, substantial Chinese investment in key Egyptian industries, and a joint commitment to exploring cutting-edge sectors for future growth.
