China to Expand Investment in Egypt’s AI and Electric Cars Industries

China to expand investment in Egypt’s AI and electric-vehicle sectors after Xi-El-Sisi talks

Chinese President Xi Jinping’s two-day state visit to Egypt on September 1–2 culminated in a joint agreement to broaden Beijing’s investment footprint in Egyptian manufacturing and high-tech sectors, with a focus on artificial intelligence, electric vehicles and semiconductors. Presidents Abdel Fattah El-Sisi and Xi reviewed the Comprehensive Strategic Partnership established in 2014 and agreed to launch the third phase expansion of the TEDA Suez Economic and Trade Cooperation Zone in the Suez Canal Economic Zone (SCZone), where more than 200 companies have already invested.

"Egypt reaffirmed its commitment to the One-China principle and its support for China’s position on issues related to sovereignty and territorial integrity, including Taiwan," the joint statement said, while also calling for "more Egyptian products to enter the Chinese market."

The agreement signals a strategic shift from large-scale infrastructure projects — already prominent in Chinese-Egyptian cooperation, including work on the New Administrative Capital and multiple Belt and Road Initiative-linked developments — toward deepening technology and local-manufacturing partnerships. The two governments specified targeted cooperation in a wide range of advanced industries: artificial intelligence (AI), cloud computing, data centers, data-driven industries, semiconductors, cybersecurity, space applications and remote sensing.

• Industrial and manufacturing focus: Egypt and China agreed to expand collaboration in electric vehicles, shipbuilding, renewable-energy equipment, agriculture and automotive manufacturing, with the stated intent of increasing local production and export potential rather than solely importing finished goods.
• SCZone growth: The third phase of the TEDA Suez Economic and Trade Cooperation Zone expansion was approved; the zone currently hosts over 200 companies and is central to efforts to attract Chinese factories producing EVs, renewable equipment and components.
• Trade balancing and market access: The joint statement urges a more balanced bilateral trade relationship and supports measures to facilitate greater Egyptian exports into China, including continued consultations on an "Early Harvest" agreement to fast-track specific trade cooperation areas.
• Financial mechanisms: Leaders welcomed cooperation on Chinese Panda Bonds, expanded local-currency exchange arrangements and the renewal and increase of the bilateral currency-swap agreement. Both sides agreed to encourage greater use of Egyptian and Chinese currencies in trade and investment to reduce reliance on third-country currencies.
• Supply chains and critical materials: The two countries called for cooperation around critical-mineral supply chains, reflecting the materials' importance for advanced manufacturing, renewable energy and electric vehicles.

Economic ties between Cairo and Beijing have grown rapidly: bilateral trade climbed to approximately US$20.8 billion (EGP 1.06 trillion) in 2025, up from US$17.4 billion (EGP 886 billion) in 2024. Following the talks, both governments instructed officials to move ahead with the agreed measures and to hold the next meeting of their Joint Governmental Committee "as soon as possible." Xi invited President El-Sisi to visit China; El-Sisi accepted the invitation and said he would make the trip at a mutually convenient time.

Outlook: Implementation will hinge on turning memoranda into concrete projects — attracting Chinese manufacturers to establish assembly and component plants in Egypt, securing finance through Panda Bonds and currency-swap facilities, and translating commitments on market access into tangible export flows. If successful, the agenda could reposition Egypt from a heavy importer of Chinese goods to a regional hub for Chinese-backed production in EVs, renewable-energy equipment and data-driven industries.