Chinese President Xi Jinping’s visit to Cairo this week shows Beijing’s strategic push to fortify its ties across Africa and the broader Global South, a move that comes as many perceive American influence in the region to be waning. This diplomatic engagement is aimed at offsetting the geopolitical competition currently faced by the United States in the region.
Investment announcements during the visit
A series of significant business deals and agreements accompanied Xi’s visit, demonstrating China’s commitment to boost economic partnerships and trade with Egypt. These deals not only promise to stimulate the Egyptian economy but also strengthen Beijing’s foothold in the region.
ZC Rubber’s Manufacturing Complex in Sokhna
Chinese tyre manufacturer ZC Rubber announced plans to invest a substantial $500 million in building a manufacturing complex in Sokhna, a strategic port town located on the Gulf of Suez. This investment is expected to significantly boost Egypt’s manufacturing sector and create new job opportunities.
Expansion of Tianjin Economic-Technological Development Area (TEDA)
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The two governments also agreed to expand the Tianjin Economic-Technological Development Area (TEDA), a Chinese-run industrial park situated within the broader Suez Canal Economic Zone on the Red Sea. This expansion will provide more space for Chinese companies to establish and grow their operations in Egypt, further increasing trade and investment between the two countries. TEDA, already home to major Chinese manufacturers such as Jushi and Midea, has attracted total investment surpassing $4.7 billion and recorded sales of more than $7.3 billion, highlighting its significant economic impact.
Infrastructure and Renewable Energy Deals
In addition to these investments, China agreed to two financing agreements worth around $665 million in total. These deals will facilitate extensions to Egypt’s light-rail network, connecting Cairo to new urban developments such as the “New Administrative Capital,” a megacity under construction to the east of Cairo that is designed to serve as the country’s new political and financial center. Furthermore, Egypt’s Mansour Group signed a memorandum of understanding with China’s Tianneng Battery Group to explore manufacturing products like lithium batteries and electric vehicle battery cells in Egypt, marking a significant step towards boosting Egypt’s renewable energy sector.
Xi’s visit to Egypt is not only economically significant but also symbolically important. The trip marks a rare overseas venture for the Chinese president, who has reduced his international travels in recent years. Prior to the Covid-19 pandemic, Xi averaged around 14 overseas trips per year. However, in 2023 and 2025, this number dropped significantly to just four and six trips, respectively. Xi’s visit to Egypt is part of a broader trip that includes stops in Kyrgyzstan, India, and Washington D.C., representing his most extensive foreign travel since the pandemic began.
Julian Gewirtz, a former senior director for China and Taiwan Affairs at the White House National Security Council in the Biden administration, tells African Business that Xi sees an opportunity to solidify Chinese influence on the continent. With the growing perception of the United States as a less attractive partner due to its controversial policies in Africa, Xi is looking to position China as a more appealing alternative. Speaking in Cairo, Xi called for the two countries to “oppose unilateralism and bullying acts” and promote “a more just and equitable global governance system,” showing China’s commitment to supporting deeper ties with Africa.
