China will exempt Egyptian exports fully from tariffs beginning May 2026 as Beijing deepens trade ties with Africa, Chinese state media reported.
 

From 1 May 2026, Egyptian exports to China will enter the Chinese market tariff-free, alongside goods from 52 other African countries. The move exempts exporters from customs duties, lowering costs and potentially enhancing the competitiveness of Egyptian products in one of the world’s largest consumer markets.

The measure forms part of China’s broader strategy to deepen economic engagement with African economies by facilitating trade, boosting imports from the continent, and diversifying supply chains.

The tariff exemption is expected to particularly support Chinese imports of agricultural products, minerals, and manufactured goods, contributing to China’s productivity and food security, while simultaneously supporting job creation and macroeconomic stability across Africa.

By eliminating tariffs, the policy improves market access for countries such as Egypt, opening the door to a consumer base of roughly 1.4 billion people. It also reduces trade barriers, lowers export costs, and strengthens supply chains—developments that align with Egypt’s goal of building a more productive, export-oriented economy.

This comes amid ongoing regional tensions following the outbreak of the US-Israeli war on Iran, which has contributed to global inflationary pressures and tighter financial conditions, weighing on trade, tourism, and capital flows.

Supply chain disruptions, rising inflation, and higher import costs have further pushed Egypt to pursue localized manufacturing expansion and export growth, particularly as fuel prices have increased and the Egyptian pound has faced volatility.

These efforts are also tied to Egypt’s broader economic objectives: reducing its import bill, increasing exports by 15–20 percent annually through 2030, and raising the industrial sector’s contribution to GDP from 14 percent to 20 percent while addressing production gaps.

For the fiscal year (FY) 2026–2027, government priorities include improving productivity and competitiveness, raising the investment-to-GDP ratio from around 17 percent to 20 percent over the medium term, and narrowing the trade deficit.

In parallel, Egypt and China mark 70 years of diplomatic relations in 2026, with Beijing seeking to expand investments in the TEDA Egypt-China Economic and Trade Cooperation Zone within the Suez Canal Economic Zone (SCZone), particularly in high-growth sectors.

This aligns with the SCZone’s strategy to attract investment across 21 sectors, expand industrial and logistics activities, and position Egypt as a regional manufacturing and export hub.

Egypt is also seeking stronger Chinese partnerships in electric vehicle manufacturing, renewable energy, and water desalination, alongside opportunities in industrial localization, technology transfer, and the production of home appliances and electronics.

Approximately 2,800 Chinese companies currently operate in Egypt, with total investments exceeding $8 billion as of May 2025.

Trade between China and Africa reached $348 billion in 2025, up 17.7 percent year on year, with Chinese imports from Africa rising 5.4 percent to $123 billion. Meanwhile, bilateral trade between Egypt and China surpassed $17 billion in 2024, with Egyptian imports from China accounting for $15.5 billion.