Phoenix 24
Investment around the Suez Canal is evolving into a broader partnership spanning technology, security and regional influence.
CAIRO, EGYPT
Chinese President Xi Jinping has met Egyptian President Abdel Fattah el-Sisi during his first visit to Egypt in a decade, marking 70 years of diplomatic relations between the two countries. Both leaders agreed to deepen their comprehensive strategic partnership as instability reshapes alliances across the Middle East.
Economic cooperation remains its foundation. Chinese investment in Egypt exceeds $10 billion, while annual bilateral trade is approaching $20 billion. Chinese companies are involved in Egypt’s new administrative capital, electric railways, ports, renewable energy and manufacturing. Around $4 billion has been directed toward the Suez Canal Economic Zone, where additional industrial projects are being developed.
The two governments also discussed cooperation in semiconductors, critical minerals and wider use of their national currencies in bilateral trade. These initiatives could reduce transaction costs and dependence on the US dollar, although they do not indicate its imminent replacement. Egypt offers China access to a market of more than 110 million people and a production platform connecting Africa, the Middle East and Europe.
Security ties are becoming increasingly visible. China and Egypt have expanded cooperation on counterterrorism and conducted joint military exercises, including the Eagles of Civilization drills. Xi also called for a new Middle Eastern security framework shaped by regional countries rather than external powers, presenting China as an alternative diplomatic partner amid conflict involving Iran, Israel and the United States.
Egypt is not abandoning its longstanding relationship with Washington. Instead, Cairo is pursuing strategic balance by maintaining American military ties while expanding cooperation with China, Russia and Europe. For Beijing, Egypt’s importance lies above all in the Suez Canal, a vital corridor for Chinese trade with European markets. Xi’s visit therefore represents more than commercial diplomacy: it strengthens China’s position at the intersection of global shipping, Arab politics and African development. Egypt gains investment and greater room for manoeuvre, but must prevent financial and technological cooperation from creating a new form of strategic dependence.
La verdad es estructura, no ruido. / Truth is structure, not noise.