Xi's Visit to Egypt: 70 Years of Economic Relations

Chinese President Xi Jinping is expected to visit Egypt this week, as economic relations between the two countries enter a new phase of partnership amid growing Chinese trade and investments in vital sectors including industry, energy, and infrastructure.

Below are key facts about economic relations between Egypt and China:

• The visit holds special significance, being the first by the Chinese president to Egypt in nearly 10 years, coinciding with the 70th anniversary of diplomatic relations between the two nations.
• The visit opens doors for exploring new economic and strategic issues, strengthening cooperation with the world’s second-largest economy, while discussing regional and international matters of mutual interest.
• China accounted for about 15% of Egypt’s non-oil trade during the first half of 2026, with bilateral trade reaching approximately $11.04 billion out of Egypt’s total non-oil trade of $73.6 billion during the same period.
• Egypt’s imports from China reached $10.438 billion from January to June 2026, up 25.65% year-on-year, making China the top exporting country to Egypt.
• Egypt’s exports to China surged by 111.5% in the first half of 2026 to around $600 million, compared to about $284 million in the same period of the previous year.
• China captured 2.35% of Egypt’s total non-oil exports during the first half of 2026, out of total non-oil exports valued at $25.508 billion.
• Egypt’s trade deficit with China reached approximately $9.84 billion in the first six months of 2026, up from about $8.02 billion a year earlier, according to calculations based on data from the Ministry of Investment and Foreign Trade.
• This deficit alone equals roughly 44% of Egypt’s total non-oil trade deficit, which stood at $22.583 billion in the first half of 2026.
• Bilateral trade between Egypt and China totaled around $20.8 billion in 2025, reflecting a growth of nearly 20%.
• Egyptian exports to China are expected to reach $1.5 billion by the end of 2026, rising to between $2 billion and $2.5 billion in 2027, according to statements by Ahmed Monaar Aziz Din, Chairman of the Economic Relations Committee with China at the Egyptian Businessmen Association.
• Last June, Egypt and China extended their currency swap agreement for three more years. The local currency exchange agreement between Egypt and China has also entered into force, facilitating trade and investment and reducing reliance on the U.S. dollar for transactions.
• As of the end of June 2026, there were approximately 3,971 Chinese companies operating in Egypt.
• Egypt’s debt to China reached $7.1 billion by the end of 2025, out of a total external debt of $163.9 billion.

Chinese Investments in Egypt

• Chinese investments in Egypt are estimated at around $10 billion.
• China aims to inject an additional $4 billion in investments this year, bringing its total to $14 billion, according to Mostafa Ibrahim, Deputy Chairman of the Egyptian-Chinese Business Council.
• China ranks fifth among foreign countries in terms of the number of foreign companies operating in Egypt, after Syria, Saudi Arabia, Jordan, and Iraq.
• Chinese companies represent about 4.58% of the total number of companies established by foreign investors in Egypt as of the end of June 2026, when the total number reached 86,700.
• 357 new Chinese companies were established in Egypt during the first half of 2026, a 13.33% increase year-on-year compared to 315 companies in the same period of 2025.
• China’s net direct foreign investment in Egypt last year amounted to $226.5 million, representing 1.5% of the country’s total net foreign direct investment.
• Capital flows from China to Egypt reached $24.8 million in the first half of 2026, down 16.5% from $29.75 million in the same period of 2025.
• China ranked third among foreign countries in terms of capital inflows to Egypt during the first half of 2026, after the UAE and Libya, ahead of Saudi Arabia and Germany.
• A significant portion of Chinese investments is concentrated in the Suez Canal Economic Zone, particularly within the Egyptian-Chinese Economic and Trade Cooperation Zone “Teda” in Suez, with expanding investments in manufacturing, renewable energy, and automotive components.
• New Chinese projects under study or implementation in 2026 include a $2-billion aluminum production complex in the Suez Canal Economic Zone.
• A Chinese company is exploring the establishment of an integrated textile industrial city in Port Said, with investments ranging between $1.5 billion and $2 billion, expected to create up to 140,000 direct and indirect jobs.
• The Chinese National Tire and Rubber Company is considering building a factory in Alexandria’s Al-Amiriya area with $550 million in investments and an annual production capacity of 1.5 million tires, creating around 1,600 jobs.
• Egypt has approved a concessional loan of $200 million from China Exim Bank to finance Phase Three of the Tenham Ramadan City Railway Project, to be repaid in Chinese yuan.

Development of Diplomatic Relations

• Diplomatic relations between Egypt and China will complete 70 years in 2026, having been established in 1956. Egypt was the first Arab and African country to establish diplomatic ties with the People’s Republic of China.
• Relations between the two countries rose to the level of comprehensive strategic partnership over a decade ago and Egypt remains a partner in China’s Belt and Road Initiative, benefiting from the strategic location of the Suez Canal and the Suez Canal Economic Zone.
• The agreement exempting Egyptian exports from customs duties in China entered into effect in May 2026 and will remain valid until May 2027, enhancing opportunities for growth in Egyptian exports.
• The comprehensive strategic partnership agreed upon by the presidents of Egypt and China in December 2014 aims to strengthen cooperation across four pillars: economy, society, technology, and tourism.
• Direct air travel between Egypt and China is expanding, with five Chinese airlines now serving the Egyptian market, each operating four to five flights per week.
• Currently, between 400,000 and 500,000 Chinese tourists visit Egypt annually, with expectations of a 20% increase in numbers.
• In October, Egypt will host a delegation from the China International Trade Chamber comprising over 40 companies, while preparations are underway for an Egyptian mission to China early in 2027, involving at least 50 companies to promote Egyptian exports and investment opportunities.

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