As the renewed tensions in the Middle East push the region to the brink, Chinese President Xi Jinping’s visit to Cairo couldn’t have been more precisely timed. This was the second time Xi visited Cairo – compare that to his counterpart, Egyptian President Abdel Fattah el-Sisi, who visited Beijing eight times since assuming power in 2014.
Xi’s visit from September 1-2 was significant for both sides, though for different reasons. For Egypt, it symbolized a broader shift among Middle Eastern states toward diversifying their foreign policy partnerships. The most obvious recent example was the Mecca Joint Deterrence Agreement between Saudi Arabia, Pakistan, and Turkiye. For China, the region matters for multiple reasons, but none more than securing its trade and energy lifelines.
The bilateral talks covered the regional conflict and its implications for maritime trade and Chinese investments in Egypt. Considering that Egypt is the second-largest recipient of U.S. military aid in the region, it is important to note how China is going to play its cards after the visit.
Xi’s visit was ostensibly meant to celebrate the 70th anniversary of diplomatic relations between China and Egypt. The officials claim that this meeting is aimed at tracking the implementation of the Comprehensive Strategic Partnership Agreement signed between both countries back in 2014.
The visit was also accompanied by the signing of 25 bilateral agreements, covering trade, technology, military, and security. The most significant of all is the agreement that links Egypt’s Vision 2030 to China’s Belt and Road Initiative, alongside enlarging the Chinese-Egyptian economic zone at the Suez Canal. Another important development was the currency swap agreement, which allows settlements in local currencies while reducing dependency on the U.S. dollar. During past years, trade between Egypt and China has surpassed $20.7 billion, which is an indication of growing Chinese investment and confidence in Egyptian markets.
On the diplomatic side, Egypt reiterated its commitment to the One China principle while Xi validated Cairo’s concerns about water security and rights issues over the Nile. The Chinese position on this issue was traditionally considered more pro-Ethiopian.
China’s engagement with Egypt, especially amid the Iran-U.S. war currently roiling the Middle East, has two possible goals: hedging against maritime shipping disruptions and taking advantage of growing unease among the United States’ Middle Eastern allies.
First, the ongoing conflict has exposed the vulnerability of the global oil trade, which relies on major choke points. The war that started off with the objective of denuclearizing Iran is now centered around re-opening the Strait of Hormuz, which was open prior to the war. Iran’s use of the Strait of Hormuz illustrated a broader dynamic: geographic leverage over chokepoints can offset conventional military weakness, giving smaller powers disproportionate strategic weight.
The disruption in global energy trade is functioning as a real-time test of energy security, where China, for now, is better positioned than most. The huge oil stockpiles and diversification in oil imports have saved China in the short run, but sustained conflict in the Middle East has the potential to create disruptions domestically. The shipping disruptions have raised the importance of other maritime transit routes – including Egypt’s Suez Canal.
The Strait of Hormuz is important for China crude and LNG exports, but equally important is the Suez Canal, which acts as the bridge to connect China to its largest export market, Europe. Egypt controls the strategically important Suez Canal, positioned at the crossroads of Africa, the Middle East, Europe, and Asia.
Chinese investments in Egypt are concentrated in the TEDA Suez Economic and Trade Cooperation Zone located within the Suez Canal Economic Zone. This economic zone alone hosts around 200 Chinese companies with an investment of $3.8 billion. This trade zone offers Beijing a comparatively powerful advantage in terms of logistics, as it targets global markets. While China is still absorbing the shocks brought out by the choking of the Strait of Hormuz, the Suez Canal’s role as an alternative, more insulated maritime artery becomes more valuable to China, whose exports to Europe already rely heavily on it.
For the past two decades, Beijing has carefully observed the volatility of the Middle Eastern region, and it would be strategically negligent on the part of China if it didn’t hedge against a scenario where the Strait of Hormuz is closed. Considering this, Xi’s visit is not a coincidence but rather a calculated move, as Beijing considers an enhanced partnership with Egypt indispensable to its trade and energy security. It is natural for Beijing to secure this maritime artery, which accounts for 60 percent of its exports to Europe.
Apart from exposing energy vulnerability, the Iran-U.S. war has exposed another uncomfortable truth about the reliability of the U.S. partnership with countries in the region. Instead of solely relying on traditional Western security umbrellas, states are now looking to diversify their external partnerships. In this scenario, there are two options: either countries make their own region-driven security architectures – like the new Mecca Joint Defense Agreement – or they look toward external powers, mainly China, which has long-term interests in the region.
China is providing Egypt opportunities through investments, infrastructure building, and is also enhancing military and artificial intelligence cooperation. For Egypt, this is not a pivot away from the United States, but rather a realignment to achieve more strategic autonomy amidst volatility in the region.
China-U.S. competition is unfolding in almost every domain. Pertaining to the Middle Eastern region, both powers approach issues of regional stability differently, and it is important to analyze how China is positioning itself. During his Cairo visit, Xi called for a “new security architecture” for the region, one where “interference by external forces” is opposed and the Middle Eastern countries are “masters of their own affairs.” Such a security framework, as per Xi, should be grounded in “common, comprehensive, cooperative, and sustainable security.” This idea was reciprocated by Sisi, who said Cairo was ready to cooperate with China to ease regional tensions and explore this new security architecture.
While the U.S. approach in the region has traditionally been marked by a forward military presence, alliance obligations, and periodic direct intervention, China is offering infrastructure, investment, and trade opportunities while calling for a more non-interventionist approach, appealing to many states in the region.
China is not in a position to replace the United States; rather, what it offers is an alternative logic of security, one that is rooted more in economic interdependence rather than security guarantees. Xi’s Cairo visit, therefore, is part of a broader strategy to increase Chinese influence in the Middle East as turmoil in the region is on the rise. Meanwhile, Egypt is trying to diversify its foreign policy so that it doesn’t rely on one major power, but rather hedges as per its own national interests. Increased partnership with China will not come at the cost of cutting off ties with the United States.
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