Chinese President Xi Jinping and Egyptian President Abdel Fattah al-Sisi have agreed to expand bilateral economic cooperation during talks in Cairo, as Beijing seeks to strengthen its economic and strategic role in the Middle East.


The two leaders agreed to increase Chinese investment in Egypt and launch the third phase of development of the China-Egypt industrial zone in the Suez Canal Economic Zone, Caliber.Az reports, citing foreign media.


They also agreed to expand cooperation in data centres, semiconductors and critical metals supply chains, strengthen the use of each other’s currencies in trade and investment, and deepen security and counterterrorism cooperation, according to a joint statement.


Economic relations between the two countries have expanded significantly since Sisi visited China and signed a strategic partnership agreement in 2014.


Egypt, home to the Suez Canal and a population of more than 110 million, imported about $10 billion worth of Chinese goods in the first half of this year alone.


Chinese companies have invested billions of dollars in Egypt, including in container ports, green hydrogen projects and facilities producing iron pipes, car tyres and satellites.


Egypt’s cabinet says the Suez Canal Economic Zone has attracted about $4 billion in Chinese investment.


On Wednesday, Egyptian authorities announced plans to expand a Chinese-developed industrial area in the zone, while ZC Rubber Group signed a preliminary agreement to study a $500 million tyre manufacturing complex.


For Egypt, closer ties with China form part of a broader effort to diversify its international partnerships.


“Egypt wants to widen the circle of its relations with major world powers, including China,” former Egyptian diplomat Ayman Zaineldine told Reuters. “So the visions converge.”


Egypt is a major US defence partner and receives about $1.3 billion a year in military aid from Washington, but has steadily expanded economic and military cooperation with China.


For Beijing, Egypt’s regional influence and strategic location make it an important partner as China seeks a larger economic role and greater influence in the Middle East.


“Egypt represents something quite valuable to Beijing – a large domestic market for investment opportunities, and a lot of diplomatic weight in the region, including the Palestine question, as well as connectivity to Africa,” said H. A. Hellyer, a scholar at the Royal United Services Institute think tank.


Xi, making his first Middle East trip in four years, met Sisi in Cairo on Wednesday as regional countries reassess their strategic relationships following months of conflict that have disrupted trade, shaken economies and raised questions over Washington’s long-term role.


Xi called on Middle Eastern countries to resist external interference and consider reshaping the region’s security architecture.


He said countries in the region should be “masters of their own destiny” and explore a new regional “security architecture”, according to China’s state news agency Xinhua.


Xi also said China was ready to work with regional countries to safeguard shipping routes, which have gained importance after conflict disrupted traffic through the Strait of Hormuz and Bab al-Mandeb.


The two leaders also discussed regional developments, calling for tensions to be reduced and crises to be resolved through diplomatic means.


Growing military cooperation was highlighted last month during Egypt’s “Eagles of Civilization” exercises with China, which included an air combat drill involving Chinese-made J-16 jets and French-made Rafale aircraft.


By Aghakazim Guliyev