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South-South Cooperation in Action: The China-Egypt Partnership

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Relations between Egypt and China have proven their ability to keep pace with international and regional transformations. China is one of Egypt’s major trading partners, with annual trade volume exceeding billions of dollars. Recent years have witnessed an increase in Chinese investments in Egypt, particularly in the fields of infrastructure, industry, and energy, with a focus on mega-projects such as the New Administrative Capital and the Economic and Trade Cooperation Zone in the Suez Canal Corridor, among others. The two countries also pursue compatible policies in terms of working for peace throughout the world and advocating for the establishment of a multipolar system.

  We find that Chinese investments in Egypt play a significant role in many areas, most notably technology transfer to Egypt, particularly in sectors where China excels, such as renewable energy, the electric car industry, and all types of appliances. Chinese investments in Egypt also provide significant job opportunities and help Egypt implement its import substitution strategy by producing more products that help reduce Egypt’s import bill with Chinese assistance and support. As of May 2025, the number of Chinese companies operating in Egypt reached approximately 2,800, with total investments exceeding $8 billion. These Chinese investments are characterized by their diversity and geographical spread in Egypt, from the Suez Canal to the New Administrative Capital.  Cooperation between Egypt and China has extended to the fields of technology and artificial intelligence, with Chinese companies present in the Egyptian market, such as Huawei, Xiaomi, and ZTE. A $300 million investment fund has been established with the Tsinghua University of Artificial Intelligence and Semiconductor Technology, in addition to fiber optics and outsourcing projects.

Chinese projects contribute significantly to Egypt’s domestic growth by attracting billions of dollars in Chinese investments in various sectors, such as industry, construction, and infrastructure, along with technology transfer and industrial localization. Chinese companies in Egypt are also working to establish industrial complexes and develop mega projects, such as the iconic tower in the New Administrative Capital, and establish industrial zones in the Suez Canal and Ain Sokhna regions, contributing to job creation and added value for the Egyptian economy. Chinese development projects also contribute to the development of energy and electricity infrastructure, the training of Egyptian personnel, and the export of products to African and European markets. The win-win principle that governs the Chinese model of international dealings is a principle that suits Egypt, its leadership, and its people.

 The most prominent contributions of Chinese projects to Egypt’s domestic growth are attracting Chinese investments to Egypt, which amount to billions of dollars. China also contributes to localizing industries and transferring technology to Egypt, where technology and knowledge are transferred from China to Egypt, in addition to establishing Chinese factories to produce various products, such as automobiles, steel, textiles, and others. China also plays a significant role in developing Egypt’s infrastructure, with Chinese companies contributing to the construction of major infrastructure projects, such as the development of power plants and the expansion of their distribution networks, as well as the construction of modern roads and towers. Chinese projects in Cairo thus create job opportunities and provide significant export opportunities, as these Chinese projects provide thousands of job opportunities for Egyptian workers. Egypt is a strategic gateway for China to export its products to Africa and Europe, thanks to its distinguished strategic geographic location. In addition, China plays a significant role in developing Egypt’s economic sectors, as these Chinese projects focus on vital sectors such as industry, construction, tourism, advanced technology, and manufacturing, which supports overall economic growth in Egypt.  This enhances Egypt’s benefits from China’s Belt and Road Initiative, as Egypt’s accession to the Belt and Road Initiative enhances economic cooperation with China and facilitates the flow of Chinese investments into Egypt.

Chinese investments in Egypt received a significant boost under President “Abdel Fattah El-Sisi”. Egypt became an active member of China’s Belt and Road Initiative, and Egypt joined the BRICS bloc and the New Development Bank. Chinese projects have subsequently become important, yielding positive returns and impacting Egyptian citizens. The most prominent of these are major Chinese projects in Cairo, such as the financial and business district in the New Administrative Capital, the electric train, renewable energy projects, and textile factories, among others. These are all Chinese projects that Egyptian citizens are already aware of and following. These Chinese investments in Egypt create new job opportunities and open the door for Chinese products to enter African and Arab markets, benefiting both sides.

 Egyptian-Chinese cooperation is an ideal model for cooperation between the Global South, and Southern issues have been a major focus of the political leadership of both Egypt and China. Chinese and Egyptian Presidents Xi Jinping and Abdel Fattah El-Sisi have repeatedly emphasized the importance of solidarity among the countries of the South to confront common challenges. Egypt’s accession to the BRICS grouping, and previously to the Shanghai Cooperation Organization, as a partner country reflects its commitment to expressing the views of the countries of the South and promoting their interests. Meanwhile, China has presented its own vision on the issues of the South, evident in the numerous initiatives and ideas it has put forward, including the Belt and Road Initiative, the Global Development Initiative, and Global Governance, all of which are closely linked to the development goals of the countries of the South. This is also reflected in the vision of Chinese President Xi Jinping for “building a community with a shared future for humanity.”

 China’s cooperation with Egypt reflects a new Chinese vision for South-South cooperation, based on equality and non-interference. It reflects Beijing’s commitment to advancing cooperation toward strategic horizons that transcend traditional interests and build alliances capable of influencing the future of the international system. Egypt’s strong support and backing of President “Abdel Fattah El-Sisi” for the Global Governance Initiative launched by Chinese President “Xi Jinping” in early September 2025, with the aim of enhancing joint global cooperation to increase capacity to address common challenges and narrow the development gap between the countries of the North and the South, complements China’s and Egypt’s categorical rejection of the (Cold War mentality, protectionism, unipolarity, and hegemonic policies) pursued by the United States toward the world. 

 China’s massive military parade marking the 80th anniversary of the end of World War II demonstrated Egypt’s strong support for China’s strength and its determination to maintain peace and development in the world. The 2025 Shanghai Cooperation Organization (SCO) Summit, held in Tianjin, China, also highlighted the strong political will of China and its ruling Communist Party to contribute to reforming and improving the global governance system. The Tianjin Summit is the largest, most fruitful, and most successful summit in the history of the SCO to date. Through it, China and President “Xi Jinping” championed the principles of global governance, adhering to mutual benefit and win-win outcomes, openness and inclusiveness, justice and fairness, and pragmatism and efficiency in order to achieve justice and advance policies of cooperation among developing countries of the Global South in the face of American and Western hegemonic policies. 

 This year marks the 80th anniversary of the founding of the United Nations, a matter of particular interest to political circles in Egypt and China, as they play an increasing role in maintaining world peace and promoting international justice. In this context, Egypt and China have achieved fruitful results in comprehensive cooperation and advancing cooperation within the developing global South. Currently, the Egyptian and Chinese sides are working jointly to advance and ensure the success of China’s Global Governance Initiative, which will deliver tangible benefits to the two peoples and to the peoples of the region. This will make Sino-Egyptian relations a model for building a “community of shared destiny, mutual benefit, and shared prosperity,” in accordance with the vision of Chinese President Xi Jinping.

   Accordingly, we understand that the Chinese partnership with Egypt embodies the principles of global governance. The convergence between China’s Belt and Road Initiative and Egypt’s Vision 2030 enhances opportunities for development cooperation between the two parties and confirms the two countries’ commitment to dialogue and consultation and the rejection of hegemony and interference, in line with the principles of global governance. This, in particular, reinforces the principle of the rule of international law within the United Nations and in all international forums in order to support developing countries of the Global South, far removed from the policies of exclusion, hegemony, and the Cold War mentality that Washington currently pursues in its dealings with the world.

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