Learning From China-Egypt Relations

Chinese President Xi Jinping’s state visit to Egypt from September 1 to September 3 seems to be a routine high-level visit to celebrate the 70th anniversary of diplomatic relations between the two countries and to expand economic and security cooperation. But its deeper political message is much broader. Amid the changing world order, ongoing wars and power struggles in the Middle East, and questions about America’s traditional influence, China is trying to give its relations with Egypt a new strategic height.

In recent years, China has not only boosted its economic presence in the Middle East, but has also projected itself as a force for regional peace, dialogue, and diplomatic mediation. In contrast, the United States has maintained its influence in the Middle East for decades through military alliances, security commitments, and direct military engagement. China is using this gap as an opportunity to expand its diplomatic influence.

Soft power strategy

The main basis for China’s expansion of influence in the Middle East is not military power, but economic relations, trade, infrastructure development and diplomatic activity. China has already invested billions of dollars in Egypt. Its investment has expanded from the development of a new commercial and administrative area east of the capital Cairo to industrial infrastructure and electric railways. The Sino-Egyptian industrial zone in the Suez Canal area is also the best example of China’s long-term economic strategy.

Egypt’s engagement with the Belt and Road Initiative (BRI) and the expansion of trade and investment with China is not just an economic decision. It also gives China the opportunity to build a long-term presence in the economic activities around the Suez Canal. China is also seeking to expand non-Western economic cooperation through BRICS. Egypt’s accession to BRICS and its efforts to increase trade with China in local currencies are in line with Egypt’s desire to reduce its dependence on the US dollar. While this does not pose a major challenge to the dollar’s ​​dominance in the global economy, it reinforces China’s long-term goal of building an alternative financial and trade structure.

China’s specialty is that it has managed to maintain relations with even the most antagonistic powers in the Middle East. China has close economic and strategic ties with Iran, while it also has deep economic ties with US partners including Saudi Arabia, the United Arab Emirates, and Turkey. Egypt is a key strategic country in the Middle East. Its geographical location connecting Africa and Asia, its control over the Suez Canal, its political influence in the Arab World are the reasons why Egypt is unique and important.

The Suez Canal is of extraordinary importance to world trade. Any disruption to this waterway, which shortens sea trade between Europe and Asia, has a direct impact on global supply chains. As conflicts in the Middle East escalate currently, the strategic importance of the Suez Canal has increased even more, as risks to Strait of Hormuz, the key waterway, increase. For this reason, Egypt is not just a trading partner for China, but also a vital gateway to the Middle East, Africa, and the Mediterranean region. Egypt’s relations with China are equally significant to it. It is in quest of diversifying its strategic partnerships without being overly dependent on any one superpower. While the US has been its main security and military partner, China has become an increasingly crucial partner in the areas of economy, infrastructure, technology and trade.

The most important message of Xi’s recent official visit is this – Egypt is not trying to side with China and stand against the US. Rather, Egypt is trying to protect its national interests by maintaining relations with both superpowers. For Egypt, China is an essential partner in economic development, infrastructure, and investment. The US is imperative in terms of security, military cooperation, and diplomacy. Therefore, Cairo is not adopting a ‘choose one and leave the other’ policy.

Messages for Nepal

This expansion of China-Egypt relations also holds some important lessons for Nepal. First, small and medium-sized countries should diversify their partnerships to maintain strategic autonomy in a changing world politics. Second, for Nepal, over dependency upon a single superpower would be dangerous. Egypt is expanding its economic and infrastructure partnership with China while maintaining its security relationship with the United States. Nepal too needs to be able to maintain balanced relations with various friendly and development partners, taking into account its national interests, development needs, and geopolitical sensitivities.

Third, geographical location itself can become a strategic asset. Egypt has made the Suez Canal a source of its economic and diplomatic power. Nepal should also view the geographical location between India and China and the environmental significance of the Himalayas as an opportunity for cooperation, not just a challenge.

-The author is a journalist at The Rising Nepal.

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