During a week-long visit to China to pursue joint investment projects, Rachid Mohamed Rachid, Egypt's Minister of Trade and Industry, signed a joint economic cooperation protocol with the Chinese Trade Minister, Bo Xilai.
The agreement seeks to boost Egypt's trade with China to US5 billion from its current level of $2 billion. In March 2006, Sino-Egyptian joint venture inland investment totaled $70.6 million.
It was also to set up a joint Government to government projects including establishment of an exclusive Chinese industrial zone in Egypt that will attract joint Chinese-Egyptian investment in Egypt's textiles, footwear and pharmaceuticals industries.
Private sector projects will include a contract to create the first Chinese-Egyptian manufacturing complex in Egypt as also to channelize investment into Egypt's spinning, weaving and garment industries.
A series of MOUs was also signed between the two Governments that facilitate the transfer of Chinese technology and equipment into strategic export sectors in Egypt such as textiles and building materials.
China currently ranked as 29th largest investor in Egypt, mainly exports parts of data processing equipment, tobacco with stems, truck tires, AC generators, decoders and radio transmission equipment.
Egypt exports to China a wide variety of items including cotton, marble, plastics, petroleum products, linen, glass and cow hides.
It is evident that Egypt is looking at China as its number one trading partner over the next 10 years in preference to other traditional partners such as the United States.
