Chinese President Xi Jinping arrived in Egypt on Tuesday for his first visit since 2016, as the two countries mark 70 years of diplomatic ties and push their relationship into new areas in what Beijing has described as a “comprehensive strategic partnership”.
Since his last visit, some of Beijing’s megaprojects have become part of Egypt’s landscape.
Chinese companies have helped build the central business district of Egypt’s New Administrative Capital. Built by China State Construction Engineering Corporation, it consists of 20 skyscrapers.
At its centre stands the 385.8-metre Iconic Tower, Africa’s tallest building.
A light rail system built with Chinese involvement connects Cairo’s eastern outskirts with new urban centres, and a China-Egypt industrial zone near the Suez Canal now hosts more than 200 companies.
The industrial zone created more than 10,000 direct jobs, according to Chinese figures. Chinese reporting puts total investment at more than $4.7 billion (€4.05bn).
The scope is now widening.
AI, advanced manufacturing and technology transfer are increasingly part of the economic agenda, while Chinese and Egyptian fighter aircraft have been training together in the second joint air force exercise between the two countries.
Trade grows, but so does the imbalance
Bilateral trade reached $11.3 billion (€9.75bn) in the first six months of 2026, up 21.5% year on year, according to Egypt’s Central Agency for Public Mobilisation and Statistics.
Egyptian exports to China almost tripled to $840.8 million (€725.4m), driven by fuel, mineral oil, fruit, vegetables and cotton.
But imports from China reached $10.4 billion (€8.97bn) over the same period — machinery and electrical equipment alone accounting for $4.1 billion (€3.5bn), followed by vehicles, iron and steel, plastics and chemicals.
Egypt wants Chinese investment and technology, but also wants more Chinese companies to manufacture inside Egypt and greater access for Egyptian goods to the Chinese market.
A five-year programme agreed for 2024-2028 calls for local production and technology transfer in electric vehicles, electronics, solar panels, chemicals and modern agricultural technology, with artificial intelligence also listed as a priority.
El-Sisi said ahead of the visit that Egypt wanted to attract Chinese investment in EVs, battery storage, renewable energy and shipbuilding, while expanding technology transfer in telecommunications, AI and space sciences.
Military ties move into view
Defence links are also becoming more visible. China and Egypt are holding the second edition of their Eagles of Civilisation joint air force exercise, running from mid-August into early September at Egyptian air bases. The first was held only last year.
Chinese officials said the 2026 drills would include air combat tactics, air superiority operations, combat search and rescue and joint force deployment.
The US remains Cairo’s key longstanding security partner, providing large-scale military assistance and supplying a significant part of Egypt’s diversely sourced military equipment.
Washington has not publicly commented on the Chinese exercises. The Pentagon has previously flagged concerns about Chinese military engagement with US partners across the Middle East and Africa.
The exercises fit Egypt’s wider policy of diversifying its defence partnerships, a deliberate balancing act that also encompasses its involvement in BRICS, the New Development Bank and the Shanghai Cooperation Organisation alongside continued reliance on Western economic and security support.
Next phase of relations crucial
Ahead of the visit, Xi described the country as an important link between the Arab world and Africa and called for deeper China-Arab and China-Africa cooperation through Egypt.
For China, Egypt combines a market of more than 100 million people with a strategic position on the Suez Canal and political weight across the Arab world and Africa.
The two governments have also taken similar positions on several regional issues, including support for a Palestinian state, while Egypt maintains its One China policy.
Egypt was the first Arab and African country to establish diplomatic relations with the People’s Republic of China in 1956.
El-Sisi has travelled to China eight times since taking office in 2014, most recently in May 2024.
The agreements announced during Xi’s visit are expected to provide more detail on newer areas of cooperation, particularly technology transfer and advanced manufacturing, where Egypt has pushed hardest to move beyond the construction and infrastructure model that defined the relationship’s first decade.