7 key facts about the $14m Egypt-China deal

1. $14 Million Grant for Joint Development Projects: China has granted Egypt ¥100 million (approximately $14 million) to support joint development initiatives between the two nations. This grant was announced during a meeting between Egyptian Prime Minister Mostafa Madbouly and Zhao Leji, Chairman of the Standing Committee of China’s National People's Congress.

2. Strengthening a Decade-Long Partnership: This deal comes as Egypt and China celebrate the 10th anniversary of their strategic partnership. The relationship has grown significantly over the years, with both countries committing to deepen cooperation across various sectors.

3. Focus on Parliamentary Cooperation: Prime Minister Madbouly emphasized the importance of enhancing parliamentary cooperation as a key element of the Egypt-China partnership. This aligns with Egypt’s broader strategy to foster closer ties with China, especially in areas that involve legislative and economic collaboration.

4. Increased Chinese Investments in Egypt: Chinese foreign direct investment (FDI) in Egypt saw a significant increase, rising from $563.4 million in the fiscal year 2021/2022 to $956.7 million in 2022/2023. This surge reflects China’s growing confidence in the Egyptian market and its commitment to investing in large-scale projects.

5. Major Chinese Projects in Egypt: The investment partnership between the two nations includes significant Chinese contributions to key Egyptian projects such as the New Administrative Capital (NAC) and the Suez Canal Economic Zone. These projects are pivotal to Egypt’s economic development plans.

6. Trade Imbalance Between Egypt and China: Despite the growing partnership, there remains a notable trade imbalance. In May 2024, Egypt’s exports to China amounted to $31 million, while imports from China were significantly higher at $1.1 billion, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

7. Commitment to Future Collaboration: Both countries have expressed a strong commitment to continuing their collaboration. During recent talks, Egyptian and Chinese leaders, including Presidents Abdel-Fattah El-Sisi and Xi Jinping, pledged to further deepen their cooperation over the next five years, signaling a sustained partnership aimed at mutual growth.

This $14 million grant is a testament to the strengthening bilateral ties between Egypt and China, reflecting a broader vision of economic collaboration and strategic alignment that promises to bring significant benefits to both nations.