Egypt-China relations strengthen with $2 billion factory deal

  • Date: 25-Mar-2023
  • Source: Al-Monitor
  • Sector:Industrial
  • Country:Egypt
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Egypt-China relations strengthen with $2 billion factory deal

March 24, 2023

Egypt’s Suez Canal announced a deal on Thursday with a Chinese company to build a steel and iron factory. The agreement is one of a few Egyptian and Chinese entities have signed recently and demonstrates China’s growing footprint in Egypt. 

The Suez Canal Economic Zone said China’s Xinxing Ductile Iron Pipes Corporation will invest $2 billion to build a cast iron pipe and steel production facility in the zone. The purpose of the project is to make Egypt a hub for cast iron pipe production, Egypt’s state-owned news outlet Al-Ahram reported. 

Last week, the Chinese home appliance firm Haier inaugurated a factory in Egypt. The Haier Egypt Ecological Park is located in the Sharqia province of northeast Egypt, the state-run China Global Television Network reported. 

Late last month, Egypt launched a sensing satellite into space from China, according to Egypt Independent.

Why it matters: Egypt’s relations with China are rapidly improving. Egyptian exports to China increased by 20% in 2022. China has also emerged as a major investor in Egypt’s New Administrative Capital, Al-Monitor reported in December. Egypt and China also set up the Egyptian-Chinese Entrepreneurs Association in December to promote investment. 

Egypt has significant economic potential for China due

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