Egypt, China agree to deepen economic ties, boost investment, trade

Egypt and China agreed on Wednesday to encourage greater Chinese investment in Egypt, expand cooperation in advanced industries and seek more balanced bilateral trade, as the two countries deepen economic ties.

The agreement was reached during Chinese President Xi Jinping’s state visit to Egypt, as the countries mark 70 years of diplomatic relations.

In a joint statement issued after talks between Xi and Egyptian President Abdel Fattah El-Sisi, the two sides said they would encourage investment in sectors including electric vehicles, renewable energy, shipbuilding, advanced technology, data centres, semiconductors, cybersecurity, and critical minerals.

They also agreed to expand cooperation in agriculture and automotive manufacturing, while increasing the exchange of technology, expertise, and skills.

Egypt and China will seek to align Egypt’s Vision 2030 with China’s Belt and Road Initiative, with a focus on developing manufacturing, logistics, clean energy, and digital industries, the statement said.

The two sides also called for greater balance in bilateral trade and encouraged more Egyptian products to enter the Chinese market. They agreed to continue consultations on an “early-harvest” trade agreement, the statement said.

Egypt has sought to increase exports and attract more investment to narrow its trade deficit and strengthen foreign-currency inflows.

The two countries also agreed to increase the use of local currencies in trade and investment and welcomed continued development of the Suez Canal Economic Zone (SCZONE), including cooperation between companies in renewable energy, artificial intelligence, digital transformation, and local manufacturing.

The statement said the two sides would continue implementing the 2024-2028 executive programme for their comprehensive strategic partnership and maintain high-level exchanges and strategic coordination.

They also agreed to strengthen cooperation on global governance and support the interests of developing countries and the Global South.

The two presidents agreed that their joint governmental committee should convene as soon as possible to follow up on agreements reached during Xi’s visit.