Why did China choose Egypt specifically to expand its investments? And what is the secret of the presence of more than 2,800 Chinese companies operating in Egypt? Are Chinese investments just trade, and not part of a deeper strategic alliance? And China is spending billions in new fields such as space and electric cars… Why now? And is Egypt’s position on the Belt and Road the real reason behind the Chinese rush? And what will Egypt gain when Chinese investments reach $16 billion in 4 years?
In recent years, there has been a question that has concerned many people: Why has China concentrated its investments in Egypt in a huge way? And why do we hear that there are more than 2,800 Chinese companies officially operating in the country? The story is not a coincidence; it is a deliberate action based on the strategic interests of both parties.
On the other hand, relations between Egypt and China have become stable and well-established, and this is not diplomatic talk. Chinese official Liu Yongfeng said that relations are “capable of withstanding any international changes,” especially after the many meetings that brought together President Sisi and Chinese President Xi Jinping, which made a major shift in cooperation between the two countries.
Next year will also mark 70 years of diplomatic relations between Cairo and Beijing, and in politics this is not a small number, because it means that cooperation between the two countries is not born of the moment, it is built on a long history and trust.
Today, China has investments in Egypt amounting to approximately 7-8 billion dollars, and it provides about 5,000 job opportunities for Egyptians. Most importantly, Egypt aims to increase this number to 16 billion dollars within only 4 years. However, Egypt wants to receive new investments by the end of the year worth 15 billion dollars.
What is China investing in? The list is very long, the most prominent of which are agriculture, production capacity, space, electric cars, new and renewable energy, the digital economy, infrastructure, technology, the electrical appliances industry, and manufacturing within the Suez Canal Economic Zone.
This is in addition to giant projects like TEDA in the Suez Canal axis, and companies like Haier and Midea, which are now manufacturing and exporting from Egypt.
Ok, why Egypt specifically?… Quite simply, for China, Egypt is a strategic axis and a terrible geographical location on 3 continents, the Suez Canal on the Belt and Road line, and a rapidly developing infrastructure, new cities, road networks, and modern ports.
Other than that, we have young workers, competitive wages, and free trade agreements that open doors to markets in more than 70 countries.
China also believes that its “Belt and Road” initiative is in line with Egypt’s 2030 vision, step by step. The Chinese believe that Egypt can remain an industrial and export center serving Africa, the Middle East, and Europe. This is why they are pumping billions into the administrative capital, New Alamein, and the electric train.
In BRICS, coordination between Egypt and China is very clear, especially in energy, technology and minerals. In other words, China is not investing in Egypt by chance. This is part of an economic, political and strategic alliance that grows every day. With more than 2,800 Chinese companies operating, and with plans to double investments, Egypt is heading for a much larger partnership phase.
