China is studying exempting Egyptian exports from paying customs duties, in a move that reflects the strategic partnership between the two countries and opens prospects for bilateral trade and joint investments.
The statement was made by Chinese Ambassador in Cairo Liao Liqiang during a meeting with Minister of Industry and Transport Kamel Al-Wazir in late October, according to a ministry press release. The meeting focused on strengthening industrial and investment partnerships within the framework of the strategic relationship between Egypt and China.
Chinese President Xi Jinping announced during the 32nd meeting of the Asia-Pacific Economic Cooperation (APEC) leaders on 31 October that his country is ready to provide full tariff exemptions to African countries that have established diplomatic relations with China.
The move would mark a new phase of economic cooperation and is expected to boost Egypt’s export growth in one of the world’s largest markets.
Producers and exporters view the potential move as a strategic opportunity to rebalance trade between the two countries, which currently tilts in China’s favour.
Fadel Marzouk, chairman of the Apparel Export Council of Egypt (ECE), told Al-Ahram Weekly that the tariff exemption would represent a strong boost for Egypt’s export sector, opening wide prospects for expansion into the Chinese market over the coming years.
The decision would allow garment exporters to diversify their export destinations rather than rely solely on traditional markets such as Europe and the United States, which benefit from QIZ (Qualifying Industrial Zone) agreements, as well as Arab markets, he added.
According to the council’s data, Egyptian exports increased by 22 per cent during the first nine months of the current year, reaching $2.5 billion compared to $2.05 billion in the same period last year.
Marzouk anticipates the sector’s exports reaching $3.6 billion by the end of 2025, compared to $2.8 billion in 2024, with the aim of achieving $12 billion by 2031. This target requires annual growth ranging between 30 and 35 per cent.
He confirmed that Chinese investments in Egypt’s apparel and textile industries are expanding significantly, with around 40 Chinese companies operating in the sector alongside 10 Turkish companies.
The recent export boom is the result of new investments made after the Covid-19 pandemic, as well as a shift by several local factories to allocate part of their production to external markets to meet growing demand, he explained.
Diaa Helmy, a member of both the Asian Affairs Committee and the Economic Committee at the Egyptian Council for Foreign Affairs (ECFA), said that the tariff exemptions would reflect the depth of the strategic relations between Cairo and Beijing within the framework of the two sides’ efforts to strengthen their economic partnership and achieve trade integration.
Helmy said that Egyptian exports to China currently amount to around $1.5 billion annually, including food products, vegetables, fruit, leather, marble, and granite. He anticipates this figure to rise to quadruple within two years once the exemptions are implemented.
Chinese exports to Egypt range between $16 and $17 billion annually, according to Helmy.
He noted that the Chinese market, with a population exceeding 1.4 billion people and its diverse consumer base, represents a tremendous opportunity for Egyptian products, particularly in fashion, furniture, handmade carpets, and traditional crafts that carry a distinctive Egyptian identity.
Helmy also highlighted that the smallest demographic segment in China includes about 100 million people, a market capable of absorbing a wide variety of Egyptian exports.
He explained that the eighth China International Import Expo that ended on Monday in Shanghai came in response to European criticisms portraying China as a country that “only sells”.
The event, he said, underscored Beijing’s openness to importing goods from all over the world.
China’s total imports reached about $2.6 trillion in 2024, reflecting the vast size of its market and its capacity to absorb new products, including high-quality Egyptian goods, he added.
In the building materials sector, Kamal El-Desouky, a member of the Chamber of Building Materials Industries (CBMI) at the Federation of Egyptian Industries, anticipates Egyptian exports witnessing a significant leap in 2026, once the tariff exemptions are implemented.
China is the largest importer of marble and granite blocks worldwide, according to El-Desouky.
The decision will encourage more Chinese investments in Egypt, especially after the lifting of tariffs that previously ranged between 10 and 20 per cent, he added. This will stimulate the local manufacturing of finished products and expand the export base.
El-Desouky further pointed to promising opportunities in sectors such as sanitary ware, pipes, and other construction materials, expecting cooperation with China to contribute to transferring advanced technology and developing Egyptian industries in these fields.
* A version of this article appears in print in the 13 November, 2025 edition of Al-Ahram Weekly
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