China expands military reach to match economic interests in Egypt

As recent air drills in Egypt indicate, after decades of building economic interests abroad, China is developing the ability to put military power behind them

China is beginning to match its economic presence abroad with the military reach required to operate across it.

The clearest evidence came from Egypt. Chinese J-16 fighters flew there recently, supported by YU-20 tankers that refuelled them in the air. The Chinese jets are taking part in Egypt’s “Eagles of Civilisation” alongside Egyptian Rafales and MiG-29s. This is the first time China has sent the jets to Africa, providing experience in moving a combat force across continents and operating with a major Arab military.

Chinese President Xi Jinping’s visit to Egypt commemorates 70 years of diplomatic relations. Over those decades, ties have evolved from diplomacy and trade into infrastructure, technology and now military cooperation.

Chinese economic interests are deeply embedded around the Suez Canal. Chinese companies have established manufacturing and logistics operations, using Egypt as a production and distribution base linking their supply chains to European, African and Middle Eastern markets.

That footprint is still growing. Egyptian firms signed 17 export contracts worth US$168 million with Chinese buyers last month. Beijing’s investment in Egypt in the first half of 2026 is estimated at up to US$2 billion, with much of the funds going into the expansion of existing projects.

Beijing has also extended zero-tariff treatment to Egyptian goods, removing duties that had reached 30 per cent. Yet the commercial relationship remains asymmetric: Egypt’s trade deficit with China exceeded US$18 billion last year.