The beginning of 2025 marked the end of the “Year of the Egyptian-Chinese Partnership” and closed out the “golden decade”: A ten-year period during which Egypt and China grew their bilateral relationship as part of their efforts to deepen their comprehensive strategic partnership. Since then, it has become a more serious partnership.
Historically, relations between Beijing and Cairo have deep roots. Under Nasser, Egypt became the first Arab or African country to establish diplomatic relations with the People's Republic of China in 1956. Later that year, China provided Egypt with significant financial assistance against the Tripartite Aggression of Great Britain, France, and Israel during the 1956 Suez Crisis. Despite the varying political systems in Egypt over the past half century, relations with Beijing have remained of capital importance for Egyptian foreign policy, even after the election of the Muslim Brotherhood into power in 2012.
The 2024 partnership year ended with Egyptian Foreign Minister Badr Abdelatty visiting Beijing on December 13 for a meeting with his counterpart, Chinese Foreign Minister Wang Yi. This came shortly after Egyptian Prime Minister Mostafa Madbouly’s visit to Beijing in September to attend the Forum on China-Africa Cooperation. The most significant visit of the year, however, was from Egyptian President Abdel Fattah al-Sisi in May, when he was in Beijing for the China-Arab States Cooperation Forum as well as a China-Egypt summit. This was Sisi’s eighth visit to China since becoming president in 2014. For comparison’s sake, former Egyptian President Hosni Mubarak went to China six times during his thirty years in office. This shift under Sisi-this “golden decade”-is an outlier in China-Egypt relations; there has never been so much engagement between the two.
From the China side, this can partly be explained by a surge in international partnerships after the Belt and Road Initiative was announced in 2013. It is also a reflection of a more robust Chinese presence in the Middle East in general, as the region assumes an increasingly important role in China’s energy security, trade, and contracting. In 2014 Xi outlined a “1+2+3” cooperation framework for developing ties with Arab countries, focusing on energy cooperation, trade and infrastructure construction, and renewable energy and high tech. In 2016 China released its first ever Arab Policy Paper.
For Egypt, the motivation for closer ties to China can likely be explained by a combination of political and economic necessity. Before taking office, Sisi-in an interview with the Washington Post-complained about the United States: “You left the Egyptians." That this coincided with China’s regional ambitions made Beijing look like a good bet: It’s not easy to find a great-power partner with deep pockets and no interest in Egypt’s domestic politics. As one Egyptian told the Financial Times in 2018, “there are economic powers who have the ability to help us but not the desire, and others who have the desire but not the ability.”
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At the start of Sisi’s decade in power, the China relationship looked like the best option available to a government without a lot of options.
Economic and Trade Dynamics
The relationship between Egypt and China has undergone a marked expansion during the past decade by deepening their engagement through a range of economic, political, military, and cultural initiatives. Over the past decade, China has become one of Egypt’s largest trading partners and investors. Chinese companies have invested billions of dollars in infrastructure projects in Egypt, such as the construction of a New Administrative Capital, as well as power plants and industrial zones. The two countries have also signed several agreements to increase trade and economic cooperation in the fields of energy, agriculture, and manufacturing.
According to Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS), the volume of trade exchange between Egypt and China increased from $11.9 billion to $12.7 billion between January and September 2022, which constitutes an increase of 9.8 percent. Also, Egypt’s exports to China increased from $1.1 billion to $1.5 billion during the same period, which is an increase of 36.7 percent. Moreover, according to Egyptian Finance Minister Mohamed Maait, Egypt acquired around $28.5 billion in Chinese investments between 2018 and 2019, which makes it the largest recipient of Chinese investments in the Arab world.
This five year period also witnessed unprecedented growth in trade between Egypt and China. Egypt’s imports from China doubled from approximately 8 billion dollars in 2017 to 14.4 billion dollars in 2022. Egypt’s exports to China, which were approximately 693 million dollars in 2017, reached 1.8 billion dollars this past year. As a result, China has become Egypt’s largest trading partner for eight successive years.
Data from the Central Bank of Egypt revealed that China acquired the largest share of Egypt’s imports, at a rate of 10.1%, at an amount of about two billion dollars, during the ending fiscal year. Data also showed that the United States came as the fourth exporter of goods and commodities to Egypt, at a rate of 6.2%, which is almost 1.2 billion dollars.
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Infrastructure and construction projects in new Egyptian cities have drawn particular attention from Chinese investors. The erection of the Iconic Tower in the New Administrative Capital, for example, was executed by the China State Construction Engineering Corporation at a cost of up to 3 billion dollars.
Look closer though, and it appears to be less of a partnership and more of an asymmetrical relationship that tilts heavily in China’s favor. The trade numbers are telling. In 2022, volume of trade was just over $13.2 billion. However, of that total, Chinese exports were valued at just under $11.5 billion, while Egyptian exports to China were $1.8 billion. This imbalance was not an anomaly. In fact, it was the most favorable year for Egypt throughout the decade. The type of trade is troubling too. Egyptian exports to China are almost all commodities, and of that, the majority is consistently energy. This trend has not improved throughout the “golden decade”: In 2014, 31 percent of Egypt’s exports to China were energy, and in 2022, energy made up 56 percent.
Looking at other indicators of economic engagement since the comprehensive strategic partnership was announced is equally interesting. From 2005 to 2013, Chinese companies earned $3.34 billion from contracts in Egypt. In the decade since, that jumped to $16.62 billion.
One of the main pillars of Chinese-Egyptian economic cooperation is the enhancement of manufacturing production, with Chinese investment in Egypt largely concentrated in industrial projects, which constitute a 55 percent share of all investments, while construction accounts for 20 percent, and services 12 percent. The SETCZone plays a key role within this cooperation framework, supporting Chinese enterprises in search of investments and market share while attracting mobile capital with the aim of building up industries and labor capacity in Egypt. Now operating at full capacity, it is touted by Chinese officials as a model of solidarity, cooperation, and mutual benefit, making it a valuable case study on the capacity of Chinese industrial parks to adapt to domestic needs and contexts.
The Belt and Road Initiative and the Suez Canal Economic Zone
China’s keenness to strengthen its relations with Egypt should be viewed through the prism of China’s massive Belt and Road Initiative. Egypt, situated at the northeastern tip of Africa, serves as a crucial gateway to the African continent, and its Suez Canal is a vital waterway connecting the Mediterranean Sea to the Red Sea and the Indian Ocean. Egypt’s large population of over 100 million people provides a significant consumer base for Chinese goods.
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Much of this has been centered on Egypt’s ports, especially the SCZone, which was expanded in 2016 with investment from TEDA Investment Holding Co., a state-owned enterprise based in Tianjin. Within this area is the China-Egypt Suez Economic and Trade Cooperation Zone, an industrial park where over 160 Chinese companies operate, providing over seventy thousand jobs for Egyptians. This is important given the state of Egypt’s economy.
For example, the Suez Economic and Trade Cooperation Zone (SETC-Zone) which was established in 2008, is considered to be the key project that significantly serves the BRI due to its location and logistical capabilities. The SETC-Zone is a major hub for Chinese products, boasting around 102 Chinese companies, $1.2 billion dollars of US investment, 30,000 new jobs, and over $2.5 billion in sales, according to China’s National Development and Reform Commission.
Furthermore, collaboration between Egypt and China in the maritime industry has been an important aspect of their bilateral relationship in recent years. Egypt’s Suez Canal is a vital component of China’s Maritime Silk Road, a strategic piece of the Belt and Road Initiative. The canal’s facilitation of trade between Asia, Africa, and Europe has incentivized binational cooperation in maritime trade, logistics, and infrastructure development.
On August 13, Sailun Group signed an agreement with TEDA Egypt Company to build this large tire manufacturing plant in the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in the Suez Canal Economic Zone (SCZone). The chairman of the economic zone, Waleid Gamal El-Dien, said that this tire factory is the cornerstone of the special zone's plan to build an integrated automotive manufacturing industrial cluster.
The Suez Canal Economic Zone is located near the Suez Canal, one of the world's busiest maritime trade routes. It consists of six ports and four industrial zones, covering 461 square kilometers, and enjoys special legal, fiscal, and regulatory incentive systems to attract foreign investment. The TEDA Cooperation Zone is jointly developed by Tianjin TEDA Holdings of China and the China-Africa Development Fund. Currently, more than 160 Chinese companies have settled in the TEDA Cooperation Zone, covering key fields such as electronics, electric vehicles, artificial intelligence, and renewable energy. The first phase covers 7.34 square kilometers, with plans to expand to 10 square kilometers.
According to data from the General Authority for Investment and Free Zones (GAFI) of Egypt, there are currently about 2,800 active Chinese companies in Egypt, with cumulative investments exceeding $8 billion. This number is expected to grow to $12 billion by the end of 2025. The acceleration of Chinese investment in Egypt is partly due to the Egyptian government's opening of a direct RMB investment channel in April this year and the introduction of multiple preferential policies, creating unprecedented favorable conditions for Chinese companies investing in Egypt.
Located at the junction of Africa, Asia, and Europe, Egypt borders Europe to the north, connects to the African hinterland to the southwest, and adjoins West Asia to the east. It controls the Suez Canal, which handles 12% of global maritime trade volume, covering a consumer market of over 1.5 billion people in the surrounding region. Meanwhile, Egypt has joined multiple free trade agreements and preferential arrangements, with most exports to the EU, the US, Africa, and Middle Eastern countries enjoying zero or low tariffs. Egypt also has abundant labor, huge market potential, and rich natural resources. It is the most populous country in the Arab world, with a high proportion of young people, and its local consumption structure is undergoing an upgrade process.
In recent years, China and Egypt have cooperated extensively in infrastructure, energy, technology, and finance, deepening their partnership based on China's "Belt and Road" initiative and Egypt's "Vision 2030." Chinese companies have played key roles in projects such as the Benban Solar Park (the world's largest solar power station), the Egypt Iconic Tower, and the Central Business District of the New Administrative Capital, highlighting China's important position in Egypt's urbanization and infrastructure development. Additionally, cooperation in the transportation sector is continuously advancing. Chinese companies are involved in a $10 billion electric train project and a high-speed rail network connecting Cairo with other major cities. These projects not only help Egypt modernize its internal connectivity but also strengthen its position as an international regional trade and manufacturing hub.
Financial cooperation between the two sides is also deepening. In July this year, the People's Bank of China and the Central Bank of Egypt signed multiple memorandums of understanding aimed at enhancing financial integration, covering local currency settlement, currency swaps, technical cooperation, and panda bond issuance.
Defense and Military Cooperation
Beyond the economic side of the relationship, defense cooperation was also on the rise in 2024, albeit from a very low starting point. The two held a joint naval exercise in the Mediterranean Sea in August, training in communications coordination, formation maneuvering, and maritime replenishment positioning. This was the first joint exercise since 2019, when they trained on counterterrorism and piracy, transportation signaling exercises, and several sailing formations.
Whatever the case, the sale remains unconfirmed and there are several reasons why it may not materialize. For one, the J-10C is a fourth-generation jet and the Egyptian air force wants fifth generation. Most importantly, purchasing Chinese fighter jets would likely affect the Foreign Military Financing that Egypt gets from the United States-financing that must be approved by the US Congress. In 2024 this totaled $1.3 billion. In an era of US-China competition, Washington would not look favorably on Egypt bringing Chinese fighter jets into its air force.
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Cultural and Soft Power Initiatives
Of late, China’s involvement in Egypt has not been limited to construction projects, expanding instead to encompass the cultural sphere and discrediting the widely held belief that China’s plans in Egypt are solely economic. Many media outlets-notably government ones-have become megaphones for Chinese Communist Party (CCP) propaganda. Another area of influence is China’s effort to engage Egypt’s next generation of leaders and administrators, primarily through large-scale training programs offered to government and executive leadership across Egypt. Last year, the Ministry of International Cooperation also organized several programs for Egyptians to earn masters and doctoral degrees from Chinese universities and educational institutions.
The establishment of the Confucius Institute at Cairo University is another example of China’s soft power tools in Egypt. Founded in 2007, the institute is intended to teach Egyptian scholars the Chinese language and share Chinese culture.
Implications for Egypt's Relations with the United States
The growing partnership between Egypt and China carries serious implications for Egypt’s relations with its western allies, and particularly with the United States. First, the United States has traditionally been a key strategic ally for Egypt, providing significant military and economic aid, as well as political support over the past four decades. The US National Defense Strategy has identified China as the top threat to US national security interests.
Second, Egypt’s strategic partnership with China opens the door for increased presence and influence for Beijing in the region, which would threaten US strategic interests in the long term. China has already expanded its strategic relations with several countries in the Middle East, particularly with some of the United States’ key partners in the Gulf, such as Saudi Arabia.
Fifth, the US has serious concerns about China’s attempts to affect its national security. Over the past few years, both countries have been involved in cyberwarfare and have exchanged accusations of launching cyberattacks against each other. Egypt’s embrace of Chinese technology would significantly impact the United States’ national security, something that will not be tolerated by Washington. For example, American officials urged Egyptian companies to refrain from conducting business with Chinese companies utilizing 5G connections, citing potential risks to data privacy and security.
Finally, the Biden administration has been attempting to build a global alliance of democracies that could counterbalance the rising global axis of autocracies led by China and Russia. Egypt’s growing partnership with China creates economic and strategic opportunities, but also poses challenges to its relations with its traditional allies, such as the US.
Frequent high-level visits throughout 2025 lay the foundation for deeper strategic cooperation between China and Egypt in defense, education, industry, and technology. It is expected that these collaborations will reach new heights in 2026, when China and Egypt celebrate the 70th anniversary of diplomatic relations.
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