Economic & trade ties

In 1953, before diplomatic relations were formally established Egypt offered to provide China with cotton. Trade exchange, in that year, was valued at $11 million; $10 million in exports to China and $600 thousand imports.

On August 22, 1955, a trade agreement and a protocol were signed in Beijing.

With Cairo having recognized the People's Republic of China on May 16, 1956, new avenues of cooperation became available.

In February 1960, the two countries signed a protocol supplementary to the 1955 trade agreement.

In December 1964, the two governments signed an agreement of economic and technical cooperation in Beijing.

In June 1972, an agreement was signed in accordance with which China would assist Egypt in building a brick factory.

In October 1982, the Joint Egyptian-Chinese Committee for Technical and Electricity Cooperation was established in Cairo.

In March 1987, the Egyptian-Chinese Committee for Technical and Scientific Cooperation held its first meeting in Cairo. 10 Agreements were signed, including exchanging expertise in the fields of pharmaceuticals, and the manufacturing of medical equipment.

Trade exchange in 1987 reached $135 million; $125 million in Chinese exports to Egypt; $10 million in Egyptian exports to China.

In December 1989, China agreed to build the Cairo International Conference Center.

In June 1993, an Egyptian parliamentary delegation visited Beijing and was briefed on economic reforms and on the Chinese open-door policy experiment. They visited a number of economic free zones in Shanghai and Tianjin.

In March 1995, the Chinese minister of trade and economy came to Egypt at the head of a governmental economic and trade delegation. During the visit, she was received by President Mubarak and held talks with the Egyptian ministers of electricity, planning and tourism. She also met her counterpart over ways of boosting economic and trade cooperation between their two countries.

The volume of trade exchange between Egypt and China in 1995 was put at $452 million; $439.63 million in Chinese exports to Egypt; $13.6 million in Egyptian exports to China. In April 1997, Prime Minister Kamal al-Ganzouri visited China where after talks several documents were signed:

• a memorandum of understanding (MOU) on China's contribution to investments in the free zone north-west of the Gulf of Suez;

• a MOU on promoting trade between the two countries;

• a technical and trade agreement;

• an agreement of cooperation in the field of family and rural development; and

• documents allowing Egyptians entry without visa into the Hong Kong Administrative region

The figure for trade exchange in 1997 jumped to $520.7 million; 464 million in Chinese exports to Egypt; $56.7 million in Egyptian exports to China. The figure continued to grow over the years until 2005 when it hit a high of $2 billion and $150 million for the first time in the history of the two countries.

Chinese investments in Egypt are concentrated in 35 projects most of them in the fields of textiles, chemicals, engineering, foodstuff and leather products in addition to investing in such sectors as those of building materials, petroleum, maritime transport, metallurgy and IT.

Meanwhile, Egyptian investments in China until 2005 were concentrated in 43 projects (according to the Chinese Ministry of Trade), with a contractual value of $50 million out of which only $12 million have been implemented so far in the fields of ready-made clothes, textiles, leather and plastic products, and carpets.

Egyptian exports to China: marble and granite; cotton; crude oil; carpets; plastic products; iron and steel; toilet appliances, linens; crystals; glass; fruits and condensed juices.

Chinese exports to Egypt: animal products; textiles; metal products; electrical appliances; children's toys; school equipment; shoes.