China and Egypt forging a win-win path

In a historic move, Chinese President Xi Jinping is set to visit Cairo after participating in the Shanghai Cooperation Organization Summit in Bishkek, capital of Kyrgyzstan. The visit, part of a tour from Aug 30 to Sept 3, is a significant step in China-Egypt relations. During his stay, Xi will meet Egyptian President Abdel Fattah El-Sisi, aiming to contribute positively to "safeguarding peace and stability in the region", according to Chinese Foreign Ministry spokesperson Lin Jian.

Since 2014, one year after the Belt and Road Initiative was launched, China and Egypt have nurtured a comprehensive strategic partnership. A memorandum of understanding on cooperation under the initiative was signed in 2016. Egypt's role expanded when it became a dialogue partner of the SCO in 2022.

Xi's visit to Cairo comes at a time of profound regional and global changes, signaling that relations between the two countries are entering a new phase. These ties date back to 1956, when Egypt became the first Arab and African country to establish diplomatic relations with China. Over the years, the relationship has developed steadily. It has expanded particularly rapidly over the past decade through practical cooperation and tangible achievements.

Currently, around 3,366 Chinese companies are investing in Egypt across vital sectors, including textiles, solar panels, chemicals, automobile manufacturing and logistics, according to Mohamed Awad, CEO of Egypt's General Authority for Investment and Free Zones. To support Chinese investors, Egypt has established a dedicated unit to facilitate business expansion and address challenges.

By the end of 2025, Chinese investment in Egypt had reached around $12 billion and is projected to grow to $15 billion by the end of 2026. Bilateral trade reached $20.8 billion in 2025, up 19.6 percent year-on-year, while Egyptian exports to China increased by 41.9 percent to $819 million.

These figures underscore the tangible results of the China-Egypt strategic partnership, highlighting China's pivotal role in Egypt's development vision. The partnership is grounded in mutual benefit, for Egypt offers China a gateway to the Arab world and Africa. Egypt also offers China strategic access to global trade routes via the Suez Canal, while its trade agreements open doors to major regional markets. Its logistics infrastructure positions Egypt as a manufacturing and export hub for Chinese companies targeting the Arab world, Africa and Europe.

In this way, the BRI can become a development network with a broader regional impact, fostering prosperity and reinforcing the foundations of peace and stability. Xi's visit could help align the BRI more closely with Egypt Vision 2030, while Egypt's involvement in the SCO could bridge Asia with the Arab world and Africa. The partnership's success should be measured not only by investments but also by the industries, knowledge and opportunities it generates.

Egypt's independent foreign policy and diversified international partnerships provide ample scope to expand cooperation with China across multiple sectors. This flexibility assumes greater importance as the Gulf states seek to deepen their economic and technological ties with Beijing while maintaining their longstanding security partnerships with the United States.

Egypt can provide a complementary platform for China-Gulf cooperation by combining Gulf capital and Chinese technology and industrial expertise with Egypt's location, workforce, infrastructure and free trade agreements. Such trilateral cooperation could turn Egypt into a regional hub for Chinese manufacturing, logistics and technology services.

It would give China wider access to Arab, African and European markets and offer Gulf investors new productive opportunities. Egypt, in turn, would gain investment, technology, jobs and greater export capacity. This balanced approach is a win-win formula. It would serve the interests of all three sides and give the BRI a more sustainable regional dimension.

The author is the editor-in-chief and the co-founder of the Center for Arab Eurasian Studies.

The views don't necessarily reflect those of China Daily.

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