Media: China Helps Egypt Escape Economic Crisis

Currently, China is one of Egypt's largest partners, ranking tenth among countries investing in the Egyptian market. The Egyptian government aims to improve its ranking and become one of the top five investors in the country.

Debt Swap

The two countries have signed a series of agreements to strengthen cooperation in various fields, including debt swaps, financial cooperation, green development and carbon reduction, promoting e-commerce, supporting quality standards, and cooperation in the health sector.

Last year, 2024, marked the tenth anniversary of the upgrading of Sino-Egyptian relations to a comprehensive strategic partnership. Next year, 2026, will also be the 70th anniversary of the establishment of diplomatic relations between Egypt and China.

Egyptian experts and observers believe that within the framework of a diversified international partnership policy, cooperation with Beijing is no longer an option on the periphery but a strategic path driven by necessity and shared economic and political aspirations.

Golden Opportunity

Ali Musa, a member of the Egypt-China Business Council, said that Egypt is a key country for the "Belt and Road" initiative, benefiting from its strategic location and the Suez Canal, making Egypt a logistics hub for China to quickly and safely access global markets, and an important partner for China's "Belt and Road" initiative.

However, he added in a statement to Al Jazeera that China is a huge economy with many choices. Therefore, Egypt must meet the ambitions and desires of Chinese investors, providing an investment environment that helps Chinese companies survive and develop in a competitive environment.

Musa believes that the growing interest of China in investing in Egypt is a golden opportunity for the Egyptian economy, benefiting from the potential of the world's second-largest economy, and an important strategic choice.

But he warned that attracting more investment still faces challenges, most notably the complexity of customs procedures, high land prices and taxes, and increasing manufacturing costs. He also emphasized the need to expand industrial mechanization and establish heavy industries that can support local production chains.

The Financial Role of China

In the financial field, the discussions included signing currency swap agreements, trade settlement in local currencies, the issuance of "Panda" bonds in the Chinese stock market, strengthening the interconnection of payment systems, expanding the operations of Chinese banks in Egypt, and helping Egyptian banks expand their operations in China.

Egypt became the first African country to issue "Panda" bonds denominated in Renminbi (RMB) in 2023, with a value of 500 million USD, used to fund development and green projects.

Chinese Projects in Egypt

In addition to investments, Chinese companies are involved in implementing some important development projects in the Egyptian market, playing a key role in supporting Egypt's development, such as:

The construction and operation of the New Administrative Capital Financial District;

The Alamein New City landmark tower on the North Coast;

The 1.3 billion USD light rail line;

The development of the Chinese "Taida" Industrial Zone in the Suez Canal Economic Zone.

Chinese Enterprises

Chinese enterprises are constantly seeking expansion, especially in the Suez Canal Economic Zone, which currently has over 200 companies, and is expected to double to 1,000 by 2030, investing billions of dollars in numerous different industries.

The General Administration of the Suez Canal Economic Zone stated that in the past two years, the region has attracted dozens of projects with a total investment of 6 billion USD, of which Chinese investment accounts for about 40%.

As of February 2025, there were more than 3,050 Chinese enterprises in Egypt, with a total direct investment of 1.2 billion USD.

Ahmed Abdel Aziz Sherif, Director of the Egypt Business Representative Office, said that Egypt plans to double Chinese investment in Egypt from the current approximately 8 billion USD to 16 billion USD within four years.

In 2024, Egypt's trade volume with China is expected to rise to about 17 billion USD, up from 16 billion USD in 2023, an increase of 6%.

Global and Regional Challenges

Mustafa Ibrahim, Vice Chairman of the Egypt-China Business Council, said, "The timing is more important than the event itself, which means both countries (Egypt and China) face global and regional challenges and are looking for new, more flexible, and more attractive partners. It is expected that issues between Beijing and Washington will escalate due to trade disputes. Egypt is also an important hub for China's 'Belt and Road' initiative."

Regarding what makes Chinese investment different, Ibrahim told Al Jazeera that Chinese investment focuses on high-value-added industries such as mining, electronics, electrical, and automotive, which aligns with Egypt's desire for technology transfer and strategic industry localization under the BRICS framework to enhance its production capacity.

Ibrahim explained that these investments are mostly concentrated in the Suez Canal Economic Zone because it is a free zone, offering a more stable environment, away from the complex administrative procedures and currency fluctuations faced by investors in other parts of the country.

Sources: Al Jazeera

Original: https://www.toutiao.com/article/1838247429005641/

Statement: This article represents the views of the author himself.