Xi Jinping’s Cairo trip marks ‘best ties in history’ as Egypt seeks to balance West

Chinese President Xi Jinping is set to visit Egypt this week, marking the "best ties in history" between the two nations as Egypt seeks to balance its relationship with the West. This is Xi's first visit to Egypt since 2016 and coincides with the 70th anniversary of diplomatic relations between the countries.

Beijing aims to expand its economic, military, and diplomatic ties with Cairo while addressing crises across the Middle East and Africa. The visit will provide an opportunity for China to showcase its non-Western partnership with a major Arab and African state. It could also lead to agreements on trade, investment, the Belt and Road Initiative, and the use of the Chinese yuan in bilateral transactions.

In 2023, Egypt became Africa's first sovereign issuer of a panda bond, raising $520 million on China's domestic debt market. Chinese economic ties with Egypt have rapidly grown, with bilateral trade reaching approximately $20.8 billion in 2025, up from $17.38 billion the previous year. Much of this investment is concentrated near the Suez Canal, which serves as a crucial maritime link between Asia and Europe.

China is increasingly focusing on industrial investment and economic cooperation rather than just trade. Egypt is positioning itself as a manufacturing base for Chinese companies aiming to access European and African markets, although foreign currency shortages, debt pressures, and bureaucratic hurdles remain challenges. Military cooperation between the two nations is also expanding, with Egypt's second Eagles of Civilisation joint air exercise set to take place shortly before Xi's visit.

While Egypt and China have shown broad alignment on issues like Gaza, a ceasefire, Palestinian statehood, and Egypt's mediating role, their stance on Iran remains partially aligned. Both nations favor de-escalation and oppose wider conflicts that could disrupt Suez and Red Sea shipping. Egypt sees China's growing influence as a way to diversify its defense relationships and enhance its diplomatic influence in the region.