Egypt-China relations strengthen with $2 billion factory deal
China is making major economic inroads into Egypt along with other countries in the Middle East.
![This picture taken on Nov. 17, 2019, shows the Hong Kong-flagged container ship CSCL STAR sailing through Egypt's Suez Canal.](/sites/default/files/styles/article_hero_medium/public/2023-03/GettyImages-1183012765.jpg?h=69f1eb85&itok=432SjggX)
Egypt’s Suez Canal announced a deal on Thursday with a Chinese company to build a steel and iron factory. The agreement is one of a few Egyptian and Chinese entities have signed recently and demonstrates China’s growing footprint in Egypt.
The Suez Canal Economic Zone said China’s Xinxing Ductile Iron Pipes Corporation will invest $2 billion to build a cast iron pipe and steel production facility in the zone. The purpose of the project is to make Egypt a hub for cast iron pipe production, Egypt’s state-owned news outlet Al-Ahram reported.