As Egypt and China approach the 70th anniversary of their diplomatic relations in 2026, economic analysts expect a significant deepening of economic cooperation and a further strengthening of their strategic partnership.
In a report published Monday, China’s Xinhua News Agency highlighted that Cairo and Beijing signed multiple cooperation agreements last week in areas such as e-commerce, green and low-carbon development, development aid, finance, and healthcare.
According to Xinhua, experts believe these deals support Egypt’s ambition to become a regional hub for energy and logistics, while also advancing China’s efforts to promote South-South cooperation through the Belt and Road Initiative.
One of the key agreements is a memorandum of understanding between the People’s Bank of China and the Central Bank of Egypt, aiming to deepen financial cooperation. This includes settlement in local currencies, collaboration on digital innovation, and central bank digital currency (CBDC) initiatives.
China’s central bank governor, Pan Gongsheng, stated that these efforts will enable more efficient and convenient services for Egyptian and Chinese businesses involved in trade, investment, and finance.
Diaa Helmy, Secretary-General of the Egyptian-Chinese Chamber of Commerce, described the financial cooperation as a critical signal of trust and a long-awaited step forward in Egypt-China economic relations.
Helmy added that using local currencies could help reduce dependence on foreign currencies, stabilize trade flows, and pave the way for deeper institutional coordination between the two nations.
“Partial trade settlement in national currencies is necessary,” he said. “The time has come for debt-for-development swaps, especially as China spares no effort in strengthening ties with Egypt, which it sees as a reliable friend.”
Xinhua also pointed out that the Egypt-China partnership goes beyond economics. Officials and experts highlighted how both nations are enhancing political coordination and amplifying the voice of the Global South on major international issues.
Helmy emphasized the political dimension of the partnership, noting that China supports Egypt and the Arab world on issues like Palestine, while Egypt and Arab states support China on its core interests, such as the One-China policy and maritime rights.
Looking ahead, Helmy said sustained coordination between the two countries will be essential in confronting global challenges like climate change, maritime trade routes, supply chain risks, and geopolitical tensions.
In a related context, Dr. Salah Fahmy, economics professor at Al-Azhar University, noted that China’s journey from traditional manufacturing to high-tech industries serves as a model for Egypt. He said Egypt could benefit not only from Chinese investment, but also from its experience in innovation, technology, and industrial development.
Speaking on the importance of the Belt and Road Initiative, Fahmy emphasized that Egypt’s geographic location makes it a strategic gateway linking Asia, Africa, and Europe, aligning with China’s broader vision for South-South development.
It’s worth noting that Egypt and China officially upgraded their relations to a comprehensive strategic partnership in 2014, which has since led to deepening cooperation in politics, trade, infrastructure, technology, and cultural exchange.
