Chinese Companies Flowing into Egypt Before the End of 2025 Thanks to Trump's Tariffs

Chinese Companies Flowing into Egypt

Chinese Companies Flowing into Egypt Before the End of 2025 Thanks to Trump's Tariffs

Mustafa Ibrahim, Vice Chairman of the Egyptian-Chinese Business Council, said that between seven and eight major Chinese companies are considering expanding into the Egyptian market before the end of this year. Ibrahim added that the eight companies are looking to invest in the home appliances, mobile phones, automotive feedstock, ready-made garments, and textile sectors.

Ibrahim did not specify the size of the expected Chinese investments, but said, "The companies expected are classified as large entities, such as Haier and Huawei, which are currently operating in Egypt. Therefore, we are talking about major investments that could reach $3 or $4 billion upon completion of all phases in the coming years." The Vice Chairman of the Egyptian-Chinese Business Council indicated that this year has witnessed increased Chinese interest in the Egyptian market, especially after the tariffs imposed by US President Donald Trump on Beijing recently.

"China is looking to increase its investments in Egypt from $8 billion to $12 billion within a short period. We are strongly aware of this during this period, which is witnessing daily announcements of new Chinese investments, especially in the Suez Canal Economic Zone," according to Ibrahim. He added, "The political circumstances and American pressure on China have pushed it to expand its investment beyond its borders to benefit from trade agreements. Egypt is currently one of the main countries attracting Chinese investors."

He noted that the recent period saw the largest Chinese industrial developer in Egypt, TEDA, announce its desire to acquire new land covering an area of up to 10 million square meters within the Suez Canal Economic Zone to accommodate Chinese requests. Ibrahim expects Egypt to attract $6 billion in Chinese investments over the next year, if the current Chinese investment momentum in Egypt continues.

The Vice President of the Business Council expected that the coming years would witness a gradual reduction in the trade deficit between Cairo and Beijing, in light of the increasing presence of Chinese partnerships in Egypt. Ibrahim also predicted that trade between Egypt and China would reach $16.5 billion by the end of this year, with $1.5 billion in exports and $15 billion in imports.

A Chinese bank in Egypt soon

Ibrahim noted that talks are underway between Cairo and Beijing to attract a Chinese commercial bank to operate in Egypt next year to facilitate transactions for Chinese entities operating in the country. He pointed out that Egypt and China are keen to increase bilateral trade in local currencies, which would strengthen the presence of a Chinese branch in Egypt soon.

At the end of last May, Walid Gamal El-Din, head of the Suez Canal Economic Zone, revealed that talks were underway between Egypt and China to attract a Chinese bank to operate in Egypt, with the aim of facilitating business for Chinese companies operating in his country.

On the sidelines of his participation in the Economic Cooperation and Exchange Conference between the Guangdong Region and Egypt, the head of the authority said, "We believe it is important for a Chinese bank to be present in the Egyptian market, to help Chinese companies deal in their own currency, in addition to opening up tourism prospects and enhancing bilateral trade."