Abstract：The trade relations between China and Egypt are historically and continuously developed as the two countries seek to develop bilateral relations, specifically in the trade relations. China considered Egypt as a huge market for its persity products and services that are exported by China to the Egypt market. In 1997, an agreement of understanding was signed for China's participation in the free zone investment north-west of the Gulf of Suez, the signing of a commercial communication and trade cooperation was successfully established. Moreover, the trade cooperation between Egypt and China is a key element in the cooperation between the two countries, especially in light of the growth witnessed in the trade relations between Egypt and China in recent years, where China is Egypt's largest trading partner. Egypt also comes in third place as China's largest trading partner in the African continent. According to statistics, in 2016, the volume of trade between the two countries amounted to nearly 11 billion dollars. The trade balance is heavily in favor of the Chinese side, which requires more joint efforts to achieve trade balance between the two countries. Besides that, the trade relationship between Egypt and China has become a model for the rest of the Arab countries. The two countries are still looking to formulate plans to increase the volume of trade exchange that could be beneficial for the two countries. It is important to indicate that both China and Egypt play an important role in trade and investment. China's trade policy is very precise and highly organized in targeting the Egyptian market, which Egypt consider China as the largest trading partner. This confirms that trade relations between the two countries have become more important than ever before as they are being developed continuously. In addition, this research explores the trade relations between the China and Egypt and investigated the necessary factors that impact the trade relations between the two countries.

Keywords: Trade, China, Egypt, Exports, Imports, Trade relationships, International trade, Industry markets, Benefits.

Table of Contents

1 Introduction & Background of study 1

1.1 Problem statement 4

1.2 Objectives of this study 4

1.3 Research Questions 4

1.4 Significance of study 5

1.5 Scope of this study 5

2 Literature Review 6

2.1 The growth rate of Egyptian trade has developed in the application of international partnerships and agreements 7

2.2 Why did Egypt resort to trade agreements? 8

2.3 Why did Egypt enter trade or partnership agreements with many countries including China? 9

2.4 First: World Trade Organization Agreement 9

2.5 Why did Egypt join the WTO? 10

2.6 Second: Egyptian-China Partnership 11

2.7 What are the features of the Egyptian-Chinese partnership agreement 12

2.8 What are the reasons that prompted Egypt to participate with the Chinese trading deals? 12

2.9 The Sino -Egypt bilateral trade relations 13

2.9.1 Advantages of Sino -Egypt bilateral trade relations 17

2.9.2 The analysis of the two countries China & Egypt will be SWOT also PESTEL analysis 18

2.9.3 Analysis Sino- Egyptian Trade 19

2.9.4 PESTEL Analysis of China 20

2.9.5  PESTEL Analysis of Egypt 26

2.9.6 Analysis Summary 31

3 Methodology 33

4 Analysis and Discussion 34

4.1 Conceptual Framework of Preliminary Research on Sino-Egyptian Trade 51

5 Limitations 52

6 Summary and conclusion 53

Acknowledgement 56

References 57

1 Introduction & Background of study

The field of international trade relations is one of the most exciting fields of study and economic analysis in the third millennium as a result of the continuous and successive developments and changes defined by the world trade system from one decade to another.

For international trade to play its historic role as an engine of growth and development, there must be an appropriate global trade environment, a global trading system that supports the development process, and improved conditions for international exchange.