China is expanding its economic footprint in Egypt, with President Xi Jinping and Egyptian President Abdel Fattah al-Sisi agreeing to deepen investment in the Suez Canal Economic Zone during Xi’s first visit to the country in a decade.
The agreement comes as Beijing seeks to strengthen its strategic relationship with Cairo amid the ongoing US-Iran conflict and growing concerns over global maritime trade.
According to Channels Television, Sisi’s office said the two BRICS members signed an agreement launching the third phase of the Egyptian-Chinese industrial zone. The zone already hosts about 200 companies and has attracted investments estimated at $4 billion.
The value of the latest investments was not disclosed by Egypt.
China deepens Suez Canal presence
The new projects will give China a stronger economic presence around the Suez Canal, one of the world’s most important maritime trade routes.
China has already played a significant role in several of President Sisi’s major infrastructure projects, including the New Administrative Capital, located about 50 kilometres east of Cairo. Large parts of the development have been financed through Chinese investment.
Trade ties between the two countries have also expanded. Chinese customs data showed that China recorded a $12 billion trade surplus with Egypt during the first seven months of 2026.
Xi was welcomed by Sisi at Cairo International Airport on Tuesday before the two leaders held talks at the Ittihadiya presidential palace.
Egypt stresses independent foreign policy
The meeting also focused on the six-month US-Iran conflict.
Both leaders called for diplomatic efforts towards a comprehensive agreement to end the war, according to a statement from Sisi’s spokesperson.
The visit comes shortly after Washington imposed sanctions on the Emirati branch of Egypt’s Banque Misr over alleged support for Iran. The United States has also threatened broader economic measures against entities supporting Tehran, potentially affecting Chinese financial institutions.
China, which is a major buyer of Iranian oil, has said it will protect its interests.
Sisi has meanwhile emphasised Egypt’s ability to maintain relationships with competing global powers. In an opinion article published in Egyptian media before Xi’s arrival, he described Cairo’s approach as an “independent foreign policy” and said Egypt and China were working to strengthen the role of the Global South.
Egypt remains one of the largest recipients of US military aid and has traditionally played an important mediating role in the Middle East.
Closer military ties
Economic cooperation has been accompanied by increased military engagement.
Egypt hosted major joint air combat exercises with China in August, featuring China’s J-16 fighter aircraft.
Xi is also expected to visit the Grand Egyptian Museum overlooking the Giza Pyramids during his stay.
The visit marks a significant moment in China-Egypt relations as both countries seek to expand economic and strategic cooperation while navigating growing tensions between major global powers.
