Chinese Premier Li Qiang's visit to Egypt: a look at economic and business ties

CGTN Europe

CGTN Europe spoke to Angus Blair, CEO of the Signet Institute - a Middle East focused economic and business think-tank.

Transcript

00:00So Egypt was the first Arab nation to establish diplomatic ties with Beijing, wasn't it?

00:06How would you now evaluate the state of the relationship between the two,

00:10in particular when it comes to the economics and the business side of things?

00:15Well, the relationship, Jeff, has deepened quite significantly over the last decade.

00:20The presidency has visited China eight times,

00:23which I think shows where the intent lies is to develop relations, first of all,

00:29and I think then look at ways to perhaps encourage Chinese investment in the Egyptian economy,

00:34which is in need of a very large uplift in foreign direct investment.

00:39And it's the first time you've got a major mission like this into Egypt from China.

00:44So it's a deepening of relations, trade, and in the future, hopefully, investment as well.

00:50Now, China is one of the top commercial partners of Egypt,

00:53with bilateral trade hovering around the $14 billion mark annually.

00:59So what would you say are some of the key areas where bilateral trade could be deepened?

01:04Because it seems, looking at the figures, it's pretty good as it is.

01:08It is very good, Jeff, but the issue there is it's very much in China's favour.

01:12I don't think that's going to change, frankly.

01:15Egypt's been exporting some hydrocarbons, some food,

01:18and high-end stone to be used in high-end finishing and construction.

01:24Egypt imports an enormous amount of goods.

01:26These numbers tell the story.

01:28A whole variety of areas, particularly household electronics and electrical goods.

01:33And I can only see that actually growing.

01:35But I think Egypt will be looking for investment on the ground in Egypt to provide new jobs,

01:42perhaps new technology, and as your correspondent has been mentioning,

01:45and perhaps using Egypt as a base to export, first of all, within the domestic market,

01:51then export through Egypt's relations with the rest of Africa and into Europe as well.

01:56Of course, the global economy becoming increasingly more unpredictable.

02:02How would you then describe the role that China can play within a wider Middle Eastern region?

02:07It's a peacekeeper as well, isn't it, as well as the economic effect?

02:11Well, it's broad-based, this relationship.

02:16It's growing, and growing quite quickly.

02:18I think that the more investment China puts into the region,

02:23the more committed it is to stability, and that can only be a good thing for everybody.

02:27And I think that we'll see that working, particularly in North Africa,

02:31less so with the Gulf because they don't need China's capital quite so much.

02:36But I think we'll have good news coming out in terms of short-term and long-term investment relations, of course.

02:44I hope China helps Egypt electrify everything and boost its renewable energy capacity, too.

02:50I think that's important, as well as manufacturing.

02:53But the geopolitical issues are important.

02:56Angus, you talk there about relationships.

02:59What, in your opinion, is the outlook on China's business relationships with Middle Eastern countries?

03:04Do you think it's favourable?

03:08Well, it's developing.

03:10I think that, historically, the Gulf area, the GCC and North Africa,

03:16have been looking at Europe and North America as trading partners.

03:19That's historically because of trade and oil.

03:22But, as you know, over the last 20 years, there's been enormous growth in change across the Arab world

03:26in terms of business, particularly in Saudi Arabia and the Emirates, Qatar, and so on.

03:31And they're looking to China.

03:33The development of the new development bank, the BRICS Development Bank, will also help.

03:38All of that, I think, is deepening relations

03:40and perhaps allowing China some leeway to help bring about increased calm

03:47with some of the regional issues that have risen the geopolitical noise in the last few years.

03:54Angus Blair from the Signet Institute.

03:57Thank you very much indeed.

03:58Thank you very much.

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