China and Egypt Expand Their Economic and Security Partnership

On September 1–2, President of the PRC Xi Jinping visited Cairo at the invitation of President of Egypt Abdel Fattah El-Sisi. On September 2, the leaders held talks and made a joint statement on further deepening their comprehensive strategic partnership.

With Xi Jinping and El-Sisi in attendance, five agreements and memorandums of understanding were signed, including ones on aligning the “Egypt 2030” program with China’s “Belt and Road” initiative and on cooperation in the Suez Canal economic zone. Government agencies and companies from both countries also signed more than 20 documents in the fields of technology, finance, digital economy, and transportation.

The parties agreed to launch the third phase of expansion for the China-Egypt TEDA Industrial Zone in the Suez Canal Economic Zone. The main areas of focus will be renewable energy, automotive manufacturing, textile industry, and chemical fiber production.

China and Egypt will also expand cooperation in data centers, cloud services, semiconductors, cybersecurity, space technology, electric vehicles, and shipbuilding. Separately, the parties supported the wider use of the yuan and the Egyptian pound in mutual trade and investment.

In the sphere of national security, the two countries will strengthen cooperation between law enforcement agencies – particularly in the fight against terrorism and transnational crime – and speed up the ratification of an extradition treaty.

For Beijing, cooperation with Egypt opens up the opportunity to strengthen its presence along a key trade route between Asia and Europe, expand manufacturing near the Suez Canal, and consolidate its position in the Arab world. Egypt, for its part, gains an additional source of investment, technology, and manufacturing and is seeking to reduce its dependence on Western partners.