Largest economy, has become an economic model in modern times, having achieved its tremendous economic growth through tapping its material and human resources rather than occupation, dominance and looting of other countries, as was the pattern with other, Western, powers.
The plan is for a “new Silk Road" to boost international trade, a project that has gained value due to the enormous disparity in the economic, political and military powers of countries participating in it which left no room for disputes, occupation or ascendancy over others.
Egypt's GDP close to $1 trillion
Egypt's GDP in 2015 stood at $330.78 billion on current exchange rates, and $996.6 billion when based on purchasing power parity.
Egyptian exports were worth $26.7 billion in 2014 and imports recorded $68.2 billion in the same year.
The trade deficit meanwhile was estimated at $41.5 billion, according to IMF data (IMF, Direction of Trade Statistics Yearbook 2015, pg. 212). Egypt is an importer of capital services and an exporter of tourism and transport services.
China on top of global economy with a $1,575 billion difference
China's gross domestic product based on purchasing power parity recorded $19,522 billion in 2015, compared to the $17,947 billion of the USA in the same year, a $1,575 billion difference. China's GDP at current exchange rates stood at $10,866 in 2015, compared to $17,947 billion.
China the largest trade power with exports surpassing the USA by $900 billion
China is balancing such market changes by giving a special focus to high-tech industries and using trade surpluses in direct investment in big, open markers linked to free zones and with low labor production costs to guarantee sustainable competitiveness in such markets.
It is a measure to preserve foreign markets even through local investment and production in these markets, something that makes China’s need for investment and production in several countries, mainly Egypt, essential to make use of Cairo’s openness to the world and in turn preserve its competitiveness in other markets..
This makes the Egyptian market of great significance for direct Chinese investments and vice versa, something that mirrors strong Egyptian-Chinese mutual interests.
Egyptian industries that could draw Chinese investment
Chinese investment in trans formative industries is of mutual benefit for both Chinese and Egyptian firms.
Benefits are even greater in strategic industries and large-sized, heavy-weight goods; these include cars, tractors, trains, petrochemicals, tyres, cement, paper, gypsum, marble, stones, iron and steel, ships, fertilizers, glass, solar power equipment, agricultural and fisheries, salt and others.
Likewise, investing in industries such as electronics, appliances and mobile phones can be effective and lucrative for both sides.
Egypt boasts enormous mineral and stone resources that can offer a solid foundation of growing trans formative industries, a potential that could be unlocked by China’s investments, scientific and technical expertise and advanced technology of Chinese firms.
Egypt for example possesses 152 billion tons of clay and 625 billion tons of limestone, two major materials used in the cement industry, which can mainly be found in the govern orates of Beni Suef, Sinai, Suez and Al-Wadi Al-Gadid.
Egypt also holds reserves of more than one billion tons of pure gypsum of the highest quality globally which can be found in Sinai, Suez and the Red Sea.
China’s direct investment overseas worth $1,010 billion, with Egypt off the map
While Chinese direct foreign investments have climbed from $74.7 billion in 2011 to 127.6 billion in 2015, China has no presence in the list of top ten countries with direct investments in Egypt in this period.
Beijing continues not to be listed among Egypt's key investors. While Egypt was hit by economic and security turbulence in the years between 2011 and 2013, reports shows that the country had successfully drawn in foreign investments in those past years with no share from Chinese investment befitting the Asian country's direct foreign investment figures or its strong economic ties with Egypt.
Total direct foreign investment in Egypt was worth $50.6 billion between 2011 and 2015, according to a report on the investment climate in Arab countries by the Arab Investment and Export Credit Guarantee Cooperative.
Dealing in yuan bolsters tourism and Chinese investments in Egypt
Egypt's financial policy is dependent on highly conservative monetary issuance that is dependent on local economic growth and a managed variable exchange rate that match the Chinese market's need without paying attention to calls by the West or the US to increase the yuan exchange rate.
