What Xi's tour of Egypt, Central Asia reveals about China's trade strategy

President Xi Jinping's recent tour from Central Asia to Egypt underscores China's strategy to bolster alternative trade, energy, and manufacturing networks throughout Eurasia and Africa, claim analysts. This comes as ongoing wars and tariffs have exposed vulnerabilities in existing supply routes and markets. Xi's inaugural visit to Egypt in ten years occurred after he attended a Shanghai Cooperation Organisation (SCO) summit in Bishkek, Kyrgyzstan.

There, leaders from various countries, including Indian Prime Minister Narendra Modi and Russian President Vladimir Putin, pledged to strengthen economic and financial ties.

Egypt and China agreed on a joint statement released on Thursday to explore collaboration in several key areas. These include renewable energy, data centers, semiconductors, space applications, critical mineral supply chains, agriculture, and car manufacturing. Both nations welcomed the renewal and potential expansion of their bilateral currency-swap agreement. They also emphasized the need for increased use of the yuan and Egyptian pound in trade and investment settlements.

Prior to Xi's visit to North Africa, the focus was on strengthening China's alternative trade, energy, and manufacturing networks in Eurasia and Africa. The SCO summit in Bishkek served as a platform for leaders from various countries to discuss and agree on deepening economic and financial cooperation.