Egyptian goods could be entering China dutyfree as early as the end of November, as China continues to boost diplomatic and economic relations with African nations, unnamed government sources told Al Borsa. The news follows Chinese Ambassador Liao Liqiang’s comments on Thursday that the world’s second most populous nation was studying exempting Egyptian exports from import duties, according to a Trade Ministry statement.

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The move will play a big role in rebalancing Egypt’s trade relationship with the world’s factory, along with bolstering exports and supporting USD investment flows, Cairo Chamber of Commerce’s Exporters Division head Ahmed Zaki told EnterpriseAM. Chinese exports to Egypt outnumbered those going the other way by 29x, with Egypt exporting only USD 578 mn worth of goods last year, compared to China’s USD 16.8 bn, according to the Chinese Foreign Affairs Ministry. State statistics agency Capmas’ count has Chinese imports at a slightly smaller USD 15.7 bn and Egyptian exports roughly the same.

China is working to give no-tariff access to all of the 53 African nations it has diplomatic relations with, Chinese Foreign Minister Wang Yi said at the opening of the China-Africa Economic and Trade Expo in June. The scrapping of tariffs across the whole continent extends its existing policy for least developed countries to include middle-income nations, including Egypt, while adding additional support to least developed countries.

We already know that Chinese companies ♥️ Egypt with over 200 players present in the China-Egypt Teda industrial zone, investing a combined USD 3 bn and creating over 70k direct and indirect jobs. The Chinese side has expressed interest in expanding the area allocated for the zone to house more projects.

Egypt needs to set a clear plan to increase exports over the coming five years, Zaki said, adding that this should happen as the country expands industrial investments and pushes Chinese factories to relocate to Egypt to take advantage of trade agreements with Africa, Arab, and European countries.

REMEMBER- Egypt wants to double Chinese investment to USD 16 bn over the next four years.

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