China deepens cooperation with Egypt amid growing trade deficit

Chinese Premier Li Qiang’s visit to Egypt marks a major diplomatic milestone in strengthening China-Egypt ties, said Chinese Ambassador to Egypt Liu Licheng in a statement issued Wednesday.

The trip is Li’s first official visit to Cairo and follows strategic talks between Egyptian President Abdel Fattah El-Sisi and Chinese President Xi Jinping. The ambassador emphasized China’s support for Egypt’s sovereignty and praised the two countries' growing coordination on regional and global affairs.

China is Egypt’s largest trading partner and top import source, but this close partnership comes with a significant trade imbalance. Egypt’s imports from China vastly exceed its exports, contributing to a growing trade deficit. While Chinese investments in Egypt – including the TEDA Suez Economic Zone – have created local jobs and boosted infrastructure, critics argue Egypt’s export base remains underdeveloped in the bilateral trade equation.

Chinese companies continue expanding into Egyptian sectors like renewable energy, construction materials, and consumer electronics. The ambassador praised these efforts as helping Egypt leverage its strategic location for economic development.

Liu also pointed to deepening cultural, educational, and archaeological cooperation and noted that 2025 will mark 70 years of diplomatic relations. That anniversary will coincide with the second China-Arab Summit in China, which Liu said would further consolidate ties between China, Egypt, and the wider Arab world.

Despite the positive diplomatic tone, the growing trade deficit underscores a key economic challenge facing Egypt as it deepens ties with Beijing.