Continental reference guide

The strengthening of Sino-Egyptian relations represents an important model of cooperation for the rest of Africa and the Arab world

President Xi Jinping's state visit to Egypt at the beginning of September injected fresh impetus into bilateral relations and further advanced the building of a China-Egypt community with a shared future in the new era.

This year marks the 70th anniversary of the establishment of diplomatic relations between China and Egypt. It also marks the 10th anniversary of Egypt joining the Belt and Road Initiative and President Xi's previous state visit to the country.

It is estimated that the trade volume between Egypt and China rose to about $20.79 billion in 2025, an increase of nearly 19.6 percent year-on-year, keeping China as Egypt's largest trading partner in non-oil goods. The trade structure between the two countries reflects the nature of their economies. Egyptian exports to China reached around $819 million in 2025, compared to Egyptian imports from China of nearly $19.9 billion, which highlights the importance of working in the coming period to increase and diversify Egyptian exports, helping to reduce the trade deficit.

The first half of 2026 reflects a positive shift in the performance of Egyptian exports, as Egypt's exports to China increased by 199.8 percent to reach about $840.8 million, according to Egypt's Central Agency for Public Mobilization and Statistics. The main Egyptian exports to China during the first half of 2026 included fuel, mineral oils and distillation products worth $494 million, vegetables and fruits around $150.6 million, and cotton and plant textile fibers about $76.4 million, in addition to phosphates and chemicals. The majority of Egypt's imports from China are in the form of electrical and mechanical machinery and equipment, electronics and production components, along with cars and other forms of transportation and spare parts, as well as iron and steel, plastics, chemicals and textiles. Egypt's imports from China reached around $10.4 billion during the first half of 2026, compared to $9.1 billion during the same period in 2025, a 14.3 percent increase. The total trade volume during the period rose to about $11.3 billion, compared to $9.3 billion of the same period in 2025.

Behind these positive bilateral trade data are numerous cooperation programs at different levels, among which is the China-Egypt TEDA Suez Economic and Trade Cooperation Zone (SETC-Zone). This zone has developed into a key hub for Chinese investments. The zone currently relies on the industrial development model "8+1", where the number "1" represents customs and logistics warehouses, while "8" refers to a group of main industries, including modern construction materials, electrical equipment, machinery manufacturing, textiles, chemicals and new energy.

It is estimated that the cooperation zone has successfully attracted over 200 companies, with total actual investments exceeding $4.3 billion, while sales have reached around $7.3 billion. The zone has contributed to creating more than 10,000 direct jobs, reflecting the level of industrial and investment activity in the area.

The zone has managed to attract industries that have helped fill key gaps in the Egyptian market and the markets of the Middle East and Africa. For example, Jushi Egypt, a subsidiary company of China's Jushi Group, one of the world's largest fiberglass manufacturers, has made Egypt one of the largest fiberglass producers in Africa.

With the expansion in new energy in recent years, the zone has attracted a number of new energy companies, especially in the production of solar panels and their components, contributing to building an integrated industrial chain that supports Egypt's strategy in the new energy sector.

The Egyptian-Chinese relationship is represented in the need to achieve a greater trade balance by increasing Egyptian exports with added value and not just exporting raw materials and primary products. Having a large Chinese industrial base in Egypt could be an opportunity to deepen local components, establish joint supply chains, and benefit from Chinese expertise in manufacturing and exporting, turning the relationship between the two countries from a trade relationship into a full-fledged productive and investment partnership.

The SETC-Zone is closely connected to the Belt and Road Initiative. Located in the Suez Canal area, the zone is a focal point on the Maritime Silk Road and Sokhna Port, which is one of the biggest ports in the region. The region will be the gateway to exports to Europe and other parts of Africa.

Both countries need each other, and no long-term plans can be built without leveraging the deep-rooted relationship between them for the benefit of both peoples. Therefore, future cooperation will encompass broader and deeper areas. During President Xi's recent visit to Egypt, a series of agreements and memoranda of understanding for cooperation were signed, covering the fields of technology, the digital economy, finance and transportation.

China can also deepen its industrial presence in Egypt, enabling Egypt to build a large industrial base that allows it to meet domestic market needs and export to Africa and Europe. This will help boost the Egyptian economy, create numerous job opportunities and promote socioeconomic development for Egypt. In the meantime, it will also help enhance the resilience of industrial and supply chains and energy cooperation, while opening new investment opportunities and mutually beneficial exchanges with many other Arab and African countries, following the Egyptian model.

Sino-Egyptian relations can serve as an important example for bilateral cooperation and contribute to building a community with a shared future for humanity.

The author is the first economist researcher at the Egyptian Ministry of Foreign Trade and Industry.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.