A decade after China and Egypt launched the second phase of their joint economic and trade cooperation zone in the desert along the Suez Canal, the area has grown into an industrial cluster of nearly 200 companies, creating about 10,000 jobs and becoming a tangible example of how bilateral cooperation can translate into local development.

The China-Egypt TEDA Suez Economic and Trade Cooperation Zone has attracted companies in building materials, petroleum equipment, electrical equipment and machinery, with cumulative investment exceeding $4.7 billion, according to the reports by People's Daily. What was once undeveloped desert has become an industrial platform linking China's Belt and Road Initiative with Egypt's development strategy for the Suez Canal Corridor.

The transformation reflects a broader shift in China-Egypt ties, from individual infrastructure projects toward cooperation that connects investment, employment and markets. During talks with Egyptian President Abdel Fattah El-Sisi on Wednesday, Chinese President Xi Jinping said the two countries should deepen cooperation and continue advancing the building of a China-Egypt community with a shared future.

New engine of local development

The Suez zone has increasingly moved beyond conventional manufacturing, with solar projects and an emerging circular economy pointing toward greener and lower-carbon development. The expansion into new sectors has also brought more direct benefits to Egypt's economy and workforce.

Chinese-invested projects have helped strengthen Egypt's power supply, with a solar park substation project providing about 16,000 gigawatt-hours of electricity since completion, while Chinese companies have trained local engineers and workers, with some Egyptian employees moving into technical and management positions. At a joint venture between China XD Electric and Egyptian-owned EGEMAC, local employees account for 97% of the workforce.

Such cooperation is part of a broader model of mutually beneficial development. In a signed article published in Egyptian media ahead of Xi's visit, he said China and Egypt should "pursue mutual benefit and win-win cooperation and set a benchmark for joint development."

Egyptian products find a growing market in China

The relationship is increasingly running in both directions, with Egyptian products gaining greater access to China's large consumer market.

China's trade with Egypt reached 95.19 billion yuan ($14.16 billion) in the first seven months of 2026, up 18.7% year on year, Chinese official data shows. Chinese exports to Egypt rose 17.5%, while imports from Egypt jumped 49.4%.

Agricultural trade has been a particular growth area. China's imports of Egyptian agricultural products rose 82.6% in the first seven months, accounting for 41.7% of China's total imports from Egypt. Egypt was China's largest source of frozen strawberries and third-largest source of flax, with the two products accounting for 96.7% and 7.7% of China's respective imports.

Egypt, one of the world's leading orange exporters, shipped fresh oranges worth about $26 million to China in 2025. An agricultural exporter who travels to China several times a year said strong demand for Egyptian oranges among Chinese consumers has encouraged producers to improve quality.

In an article, Egypt's Al-Ahram newspaper said China's zero-tariff measures for African products had opened access to a market of more than 1.4 billion people, while noting that lower tariffs alone would not guarantee success. Product quality, stable supply and localized marketing would remain important for Egyptian companies seeking to expand in China, the newspaper said.

Beyond bilateral ties

The significance of the relationship goes beyond trade and investment as China and Egypt mark 70 years of diplomatic ties. Egypt was the first Arab and African country to establish diplomatic relations with the People's Republic of China, and the two countries have since expanded cooperation into culture, education, science and technology, health and other fields.

Xi has said China and Egypt set an example of friendship, solidarity and coordination between developing countries, noting that both are important members of the Global South.

Egypt's position gives that partnership a wider regional dimension. As a major Arab and African country, it serves as a link between the Arab world and Africa, while China and Egypt coordinate in multilateral frameworks including the United Nations and BRICS.

At a time of persistent instability in the Middle East, Xi has also called for greater regional autonomy in security, comprehensive approaches to hotspot issues, development to underpin security and stronger international coordination.