China’s Xi seeks trade routes in Egypt, Central Asia to bypass tariffs and Western rules

President Xi Jinping’s journey from Central Asia to Egypt highlights Beijing’s efforts to strengthen alternative trade, energy and manufacturing networks across Eurasia and Africa, analysts said, as wars and tariffs expose a reliance on vulnerable supply routes and overseas markets.

According to a joint statement issued by China and Egypt on Thursday, the two sides will explore cooperation in renewable energy, data centres, semiconductors and space applications, as well as critical-mineral supply chains, agriculture and car manufacturing.

The two countries also welcomed the renewal and potential expansion of their bilateral currency-swap agreement and called for greater use of the yuan and Egyptian pound in trade and investment settlements.

Ahead of Xi’s visit to the North African country, both he and his Egyptian counterpart, President Abdel-Fattah el-Sisi, signed op-eds that were published in each other’s leading newspapers, outlining their vision for closer bilateral ties, including expanded Chinese investment in the strategic bridge between Africa and the Middle East.

Xi’s journey comes amid a continued US-China tariff war and mounting geopolitical instability, as wars disrupt shipping routes, drive up energy prices, and – together with extreme weather – deepen threats to global food security.