China's Xi Jinping Visits Egypt Amid Deepening Economic and Security Ties
Chinese President Xi Jinping arrived in Cairo for his first visit in a decade, just days after Egyptian and Chinese air forces conducted joint attack drills near Israel's border. Egyptian President Abdel Fattah el-Sisi aims to leverage Xi's visit to secure Chinese investments, technology transfers, and AI development.
Beijing has proposed building data centers and AI infrastructure in Egypt, a move seen in the West as an effort to draw Cairo away from American tech giants like Nvidia and Microsoft. Egypt is also seeking Chinese investment in electric vehicles, electronics, renewable energy, and industrial development, particularly around the Suez Canal.
The timing of Xi's visit is significant, coinciding with global shipping disruptions. The Strait of Hormuz blockade, Houthi attacks in the Bab el-Mandeb strait affecting Red Sea oil exports, and Egypt's control over the Suez Canal highlight the strategic importance of maritime routes. The Suez Canal, a vital revenue source for Egypt, has seen its contribution to the country's GDP decline due to these crises.
Sino-Egyptian relations are flourishing, with bilateral trade reaching a record $20.8 billion last year. Egypt has become a key hub for China's Belt and Road Initiative (BRI) in Africa, with Chinese investments totaling $10.2 billion by 2025. Major projects include the Central Business District east of Cairo, the Ramadan City light rail, and the China-Egypt Economic and Trade Cooperation Zone in Suez.
Security cooperation is also intensifying. China has become a significant supplier of military hardware to Egypt, including the HQ-9BE air defense system, WJ-700 reconnaissance drones, and Wing Loong 2 attack drones. The ongoing "Desert Falcon" joint air exercise involves Chinese J-16 fighter jets, which Egypt is reportedly considering acquiring to diversify its arms sources beyond Western and Russian suppliers.
Egyptian officials view the growing ties with China as strategic, integrating BRI projects into Egypt's Vision 2030 development plan. China's involvement extends to space cooperation, with Egypt launching its first satellite, Misrsat-2, with Chinese assistance and signing an agreement to use China's BeiDou navigation system.
