While the Egyptian pound has been in free fall since the central bank floated the currency—losing nearly 40 % of its value against the dollar and hitting successive record lows—international investors have been heading for the exit. Chinese exporters, however, are flooding in.

  Devaluation ≠ shrinking margins  

       To most observers a collapsing currency spells risk and eroded profits; yet more and more Chinese traders now treat Egypt as a must-win market. Their reasoning is clear-eyed, not reckless. Egypt is no longer a niche stop-off but a cost-competitive, strategically located launch pad that offers three simultaneous advantages: cheaper operating costs, tariff-free access to major blocs and a young, fast-growing domestic consumer base.

  A 40 % discount on the cost base  

       A currency that has shed four-tenths of its value in twelve months slashes local costs for Chinese operators: factory rent, wages and locally sourced raw materials are effectively 40 % off. That cushion more than offsets exchange-rate volatility and allows razor-sharp export pricing.

  Location: the ultimate springboard  

       Situated at the junction of Africa, Asia and Europe, Egypt borders both the Mediterranean and the Red Sea and sits astride the Suez Canal. From here Chinese goods can reach Europe, the Middle East and Africa in fewer days and at lower freight cost. One textile maker that moved to Egypt cut delivery time to Europe from 30 days to 12.

       Add Cairo’s web of FTAs—signed over three decades with African, Arab, EU and US partners—and the country becomes a tariff-free gateway to 1.5 billion consumers at a time when trade barriers are rising elsewhere.

  Demographics: a built-in growth market  

       Egypt’s 120 million people have a median age of 25. The population itself is a long-term demand engine.

  Two-way trade is already accelerating  

       China is Egypt’s largest trading partner. Two-way merchandise trade reached US$16.6 billion in January-October 2025, up 17.8 % year-on-year. Chinese exports to Egypt rose 17.1 % to US$15.9 billion; imports from Egypt jumped 37.7 % to US$682 million, leaving China with a surplus of US$15.2 billion.

Machinery, textiles and garments dominate China’s sales to Egypt. The 17 % export growth is more than a headline—it is a market signal flashing green for investors.

  Policy red carpet  

       From the presidential level down to industrial zones, Egypt is courting Chinese money. Investment and Foreign Trade Minister Hassan El-Khatib says Cairo wants Chinese capital in labour-intensive industries, auto and auto-parts, energy storage and new-energy projects.

  Bottom line  

       From cost savings and logistics edges to policy sweeteners and a demographic dividend, Egypt offers Chinese exporters a rare combination of short-term margin protection and long-term growth. As the two countries mark 70 years of diplomatic ties, the land that links three continents could become your next export engine.