China’s Xi visits Egypt as US sanctions threat looms over Iran links

Chinese President Xi Jinping is set to arrive in Egypt on Tuesday, making a rare trip to the Middle East as both countries face the threat of United States sanctions over financial links to Iran.

The months-long Middle East war, which began when the US and Israel launched strikes against Iran on February 28, has thrown the crucial trade region into crisis.

Washington vowed last month to destabilise Iran economically, warning of expanded sanctions against Tehran’s backers and partners that could hit Egyptian and Chinese banks, among others.

Xi’s visit “comes at a time when China’s economic interests are directly exposed to the US-Iran war,” said a political science professor at Egypt’s Suez University, Gamal Salama.

China, a major buyer of Iranian oil, has presented itself as a neutral party in the Middle East conflict, repeatedly calling for a lasting ceasefire.

Egypt, a long-time recipient of US military aid, warned against regional escalation after a drone strike hit one of its ports in July.

China is “clearly seeking Egypt’s cooperation in managing and shaping regional affairs,” said a research fellow at the Singapore-based Middle East Institute, Liu Jia.

Beijing works closely with regional actors such as Egypt, which mediates between Israel and Palestinian groups, Liu added.

Both China and Egypt support an independent Palestinian state as part of a two-state solution.

“China sees Cairo as a strategic power broker,” said Salama.

Egypt’s “relations with both Washington and regional actors give Beijing both political access and diplomatic leverage across a region where China wants a much greater say,” he added.

– ‘Renewing the friendship’ –

As part of its economic pressure campaign targeting Iran, Washington last week said it would cut off the operations of Egypt’s Banque Misr in the UAE from the US financial system.

China, in response to the US measures and threats, has vowed to safeguard its interests.

Beijing has also sought to shore up ties with US-friendly regional nations ahead of a meeting between Xi and US President Donald Trump expected this month.

The Chinese and Egyptian militaries carried out joint air combat exercises in August that featured Beijing’s powerful J-16 fighter jet.

Xi’s meeting with his Egyptian counterpart Abdel Fattah al-Sisi, scheduled for Wednesday, follows a visit to Beijing by Jordan’s King Abdullah II, whose country has also been caught up in the US war with Iran.

Xi told Abdullah in August that China “believes the sovereignty and security of regional countries including Jordan should be respected”.

Xi and Sisi are expected to discuss issues including the Gaza war, Iran, and shipping in the Red Sea and the Strait of Hormuz, according to Egyptian media.

“I look forward to renewing the friendship and working together with President Sisi to… map out a new blueprint for deepening the China-Egypt comprehensive strategic partnership,” Xi wrote in an editorial published in Egyptian media on Tuesday.

The Chinese leader’s first visit to Egypt in a decade comes as the two nations mark 70 years of diplomatic ties.

China is a major exporter to Egypt, with its trade surplus reaching $12 billion in the first seven months of 2026, according to Chinese customs data.

The leaders are expected to sign agreements on artificial intelligence, transport, energy and investment in the Suez Canal Economic Zone, Egyptian media reported.

The meeting with Xi sets Cairo up to land Chinese investments in its local AI and electronics industries, political scientist Salama said.

“What Egypt is seeking is strategic autonomy: not breaking with Washington, not aligning completely with Beijing, but creating enough room to pursue its own national interests,” he added.

AFP