When El-Sisi visited Beijing in December 2014, the two leaders signed a number of strategic agreements to boost investment and industrial exchange [Xinhua]
Trade representatives from China and Egypt are expected to sign a number of multi-billion dollar deals and investment agreements during President Xi Jinping’s visit to the capital Cairo tomorrow.
Xi’s visit comes a little over a year after Egyptian President Abdel Fattah el-Sisi visited Beijing where both leaders decided to elevate ties to a “comprehensive strategic partnership”.
His state visit to Cairo is part of a Middle East tour that sees the Chinese president visiting Iran and Saudi Arabia amid heightened tensions between the two countries.
On Monday, a Chinese trade delegation arrived in Cairo ahead of Xi to prepare the groundwork for the agreements which reportedly include memoranda of understanding for Egypt to participate in China’s One Belt One Road economic cooperation policy.
The Silk Road Economic Belt and the 21st-Century Maritime Silk Road Initiatives are among China’s most ambitious. El-Sisi had earlier said that Egypt could be a key player in reviving the Silk Route due to its strategic location as a portal for Africa and Arab countries.
The 4,000-mile Silk road linked ancient Chinese, Indian, Babylonian, Arabic, Greek and Roman civilizations. China announced a $40 billion Silk Road Fund in November 2014 to boost infrastructure projects along the route.
In March 2014, Xi said he hoped the annual trade with the countries involved in Beijing’s plan to create a modern Silk Road would surpass $2.5 trillion in a decade.
Egypt seeks Chinese aid
The Chinese and Egyptian trade negotiations will likely also examine ways to further cooperation in infrastructure, nuclear power, new energy, aviation, finance and other sectors.
Specifically, Egypt hopes to secure some $1.6 to $1.7 billion in loan agreements, which local media have speculated would come in the form of deposits.
According to influential private newspaper AlMasry AlYoum, Egypt’s Central Bank receives the bulk of the sum – $1 billion – while the rest is shared between two other major Egyptian banks.
Some Chine-Egypt experts say that the loans could come from the newly established Asian Infrastructure Investment Bank (AIIB).
Strategic cooperation
Egypt was considered to be the first among African nations to establish strategic cooperative relations with China in 1955.
The two countries have traditionally focused on promoting six major fields: political trust and mutual support, practical cooperation in all fields, promoting exchanges and cooperation, strengthening cooperation in anti-terrorism and law enforcement security, and improving the exchanges of culture, tourism and other fields.
The two countries have also established mutual support and cooperation in international and regional affairs.
Ahmed El Sewedy, Chairman of the Egypt-China Business Council, previously said that Beijing wants to invest in both Arab and African states – the only way to do that is to invest in the country that falls in the middle – Egypt.
China’s accumulated investments in Egypt surpassed $500 million in 2014, accounting for the creation of over 3000 local jobs.
According to the Forum on China-Africa Cooperation (FOCAC), two-way trade increased from $610 million in 2004 to over $6.24 billion in 2014, representing a 10-fold increase, which surpassed a target figure of $5 billion for 2016.
Egypt’s exports to China – which include marble and granite, cotton, crude oil, carpets, plastic products, iron and steel. toilet appliances, linens, crystals, glass, fruits and condensed juices, among others – increased from $30 million to $430 million in this period.
El Sisi is expected to travel to China as a guest of honour attending the G-20 Summit in September, local press reported.
The BRICS Post with inputs from Agencies
Additional reporting by Nourhan El-Berry in Cairo
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