Egypt getting back on the right track

Chinese ambassador says people are tired of turmoil and want to focus on economic development

Song Aiguo, the Chinese ambassador to Egypt, often uses comparisons when describing Egypt and China: The River Nile cuts across Egypt, just like the Yellow River winds through China's landscape, while the pyramids stand proudly in the sand, just as the Great Wall sweeps through the mountains.

Although emphasizing natural and cultural similarities, he has more practical reasons for the development of relations between these two great civilizations.

"I can see a strategic convergence," he says, referring to Egypt's mega project, the Suez Canal Corridor, which comes at a time when China, together with countries along the Silk Road, aims to rediscover the ancient trading route that linked Asia, Africa and Europe.

Last year, an $8.2 billion expansion of the Suez Canal was completed to allow two lanes of traffic, raising the daily capacity from 49 to 97 vessels.

"We collected all the money from the pockets of Egyptians within days after issuing canal bonds. That is a clear sign of how people want to develop the economy and give the government a chance to change for the better," says Salah A. el-Sadek, chairman of Egypt's State Information Service.

At the same time, China is promoting the Belt and Road Initiative, which focuses on connectivity and cooperation along the Silk Road Economic Belt and 21st Century Maritime Silk Road. African countries such as Egypt, Sudan and Kenya are part of the maritime route.

Song was appointed the Chinese ambassador in 2011, a year that marked the start of political turmoil in Egypt. However, he says the Arab country is heading back on the right track.

"Tired of political turmoil, people now really want to focus on economic development," he says.

The Egyptian government knows what the people are looking for and has taken measures to revive the economy, which is why President Abdel Fattah al-Sisi, who came to power in July 2013, enjoys wide public support, Song says.

Chinese companies are actively involved in projects to reinvigorate Egypt's economy, including the China-Egypt Suez Economic and Trade Cooperation Zone and construction of a new city about 40 kilometers to the east of Cairo that is expected to attract a population of 6 million, reducing the pressure on the crowded capital.

Although no timetable has been fixed, Chinese contractors have signed agreements to construct government offices in the new city, Song says.

China has invested more than $5 billion in Egypt, while trade volume between the two countries hit $13 billion last year, making China the Arab country's biggest trading partner.

In addition, Egypt has signed trade agreements with many countries, which means Chinese products made in Egypt enjoy similar preferential policies when exported from Egypt to other parts of the world.

Jushi Group, for example, the world's largest fiberglass manufacturer, has a factory in the Suez Economic and Trade Cooperation Zone, which allows the company to avoid anti-dumping policies introduced by European countries.

However, Song recommends Chinese companies carefully study the industry they aim to enter, and what products and services they can bring to the lucrative but competitive market.

European countries such as France, Germany and Italy all have a huge presence in the Egypt, "so smart business strategies are needed to make money in a market with a population of more than 90 million", he says.

However, there is room for companies to take different roads to meet local demand, he says,citing Muyang Storage Engineering Co as an example.

"Egypt is the biggest wheat importer in the world. At the same time, its own grain rots in the field as a result of a lack storage facilities and technology," the ambassador says. "There's strong demand for Muyang's products and services, and such investment will find it hard to lose money and can help Egypt tackle a thorny issue."

suqiang@chinadaily.com.cn

(China Daily Africa Weekly 03/04/2016 page3)