China has granted Egypt approximately USD 14 million to support joint development projects between the two countries, announced Zhao Leji, Chairman of the Standing Committee of the National People’s Congress (NPC) of China. The grant was revealed during a meeting held in Beijing between Zhao and Egyptian Prime Minister Moustafa Madbouly, who is attending the Forum on China-Africa Cooperation (FOCAC).
This year marks the 10th anniversary of the strategic partnership between Egypt and China, a relationship that has flourished in recent years. During the meeting, Prime Minister Madbouly emphasized the importance of strengthening parliamentary cooperation as a foundation for this partnership, while also reaffirming Egypt’s commitment to supporting Chinese enterprises operating within its borders. Madbouly praised China for its advancements in construction and urban development, describing the country as a crucial ally in addressing global challenges.
Egypt and China’s relationship has experienced rapid growth, with Chinese foreign direct investments (FDI) in Egypt rising from USD 563.4 million in FY2021/2022 to USD 956.7 million in FY2022/2023, according to the Central Bank of Egypt. In 2023, total investments between the two nations reached USD 14 billion, driven by key Chinese projects in Egypt such as the New Administrative Capital (NAC) and the Suez Canal Economic Zone.
Prime Minister Madbouly’s visit to Beijing, which included meeting the Chinese President Xi Jinping, comes just months after Egypt signed three memorandums of understanding with China’s National Development and Reform Commission (NDRC) and the China International Development Cooperation Agency (CIDCA). The Egyptian Prime Minister underscored the country’s interest in bolstering its green energy infrastructure, particularly solar and wind power, and voiced hopes to localize solar panel production with the support of Chinese companies.
Strengthening Ties at the FOCAC Summit
During the FOCAC summit, which took place from September 4-6, Madbouly met with leaders of prominent Chinese corporations, including China State Construction Engineering Corporation and China Energy Engineering Corporation. These meetings focused on enhancing cooperation in engineering and investment fields. The Prime Minister highlighted Egypt’s eagerness to collaborate with Chinese firms, particularly in new and renewable energy sectors.
Zhao Leji reiterated China’s commitment to supporting Egypt in addressing international challenges, emphasizing the shared vision of peaceful conflict resolution and non-interference in sovereign affairs. Both nations also expressed solidarity on global issues, including the Palestinian cause, with China voicing support for a two-state solution and Egypt continuing its mediation efforts in the Gaza Strip.
The FOCAC summit, chaired by Chinese President Xi Jinping, serves as a critical platform for discussing cooperation between China and African nations. As the largest diplomatic event since the COVID-19 pandemic, it attracted numerous heads of state and government.
China, the world’s second-largest economy, has emerged as Africa’s largest trading partner, with bilateral trade reaching USD 167.8 billion in the first half of 2024. Egypt, benefiting from its close relationship with China, has seen its exports to the Asian powerhouse total USD 31 million in May 2024, while imports from China reached USD 1.1 billion, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
Last year, China Energy Engineering Corporation has announced plans to establish North Africa’s first green hydrogen plant in Egypt, within the Suez Canal Economic Zone. Egypt hopes this initiative will bolster its capacity to export renewable energy to Europe.
In recent meetings on the sidelines of FOCAC, the Egyptian Prime Minister expressed interest in attracting additional Chinese investments in new and renewable energy technologies, including factories for solar energy equipment and wind power infrastructure.
Comments (0)