In early August 2026, Abdul Aziz Sharif, Deputy Secretary of State for Investment and Foreign Trade of Egypt, disclosed a set of remarkable data at the Beijing Business Forum: nearly 3000 Chinese companies operate in industrial zones in Egypt, with a cumulative investment of over 8 billion US dollars. What is even more remarkable is that Egypt's exports to China will increase by 41.9% year-on-year in 2025, and the growth rate will further soar to 90% in the first four months of 2026. From the shores of the Red Sea to the banks of the Nile River, China Egypt production capacity cooperation is shifting from factory construction to output, from investment driven to trade resonance.

Incremental release of investment stock

Nearly 3000 Chinese companies have invested 8 billion US dollars, forming a complete closed loop from production to export. The China Egypt Teda Suez Economic and Trade Cooperation Zone has attracted nearly 200 enterprises to settle in by the end of 2025, with a cumulative investment of approximately 3.8 billion US dollars. Haier and Midea have moved their production capacity from the Yangtze River Delta to Egypt. Giant Stone Group has built the world's largest single unit fiberglass tank kiln in Egypt, while Sailun Group has invested $1 billion to build a tire factory in the Suez Canal Economic Zone. The first phase of the project is expected to start production in 2026. By 2025, the bilateral trade volume between China and Egypt will reach 20.8 billion US dollars, a year-on-year increase of 19.6%. Egypt's exports to China will be 819 million US dollars, a year-on-year increase of 41.9%, which is more than twice the overall growth rate of bilateral trade.

Three trump cards to build a springboard

Egypt is located at the intersection of Asia, Africa, and Europe, and controls 12% of global maritime trade through the Suez Canal. The shipping time for products to major European ports is only 7 to 10 days, which is nearly 20 days shorter than exporting from China. Through the qualified industrial zone mechanism, products that meet the rules of origin can enter the US market with zero tariffs, most industrial products can enter the EU market with zero tariffs, and can also export duty-free to the Arab market with a population of 600 million. Egypt has a population of over 110 million and a labor force of about 30 million. The monthly salary of ordinary non-technical workers is about $100 to $150, which is about half of that of Vietnam. Egypt will open up RMB direct investment in 2024, and from May 2026, China will implement a zero tariff policy towards 53 African countries with diplomatic relations. Egyptian exports can enjoy tariff reductions and exemptions from China. Keywords: the Belt and Road news, trade, international cooperation

Investment driven trade resonance

Nearly 3000 Chinese companies, $8 billion in investment, and 41.9% export growth outline a clear trajectory: Egypt is not only a production base for Chinese enterprises to avoid trade barriers, but also an export hub radiating across the three continents of Asia, Africa, and Europe. The acceleration of Egypt's export growth rate to China from 41.9% to 90% confirms that the competitiveness of Egyptian manufacturing in the Chinese market is rapidly improving. The output cycle of investing in building factories is shortening, and the conversion of production capacity is accelerating. The nearly 200 enterprises, $3.8 billion investment, and over 10000 job opportunities in the TEDA Cooperation Zone are proof of the effectiveness of China Egypt capacity cooperation from a blueprint. When Egyptian factories shift from Chinese capital to Egyptian manufacturing, and then to exporting to China, China Egypt economic and trade cooperation is opening a new chapter from investment driven to trade resonance.Editor/Gao Xue