Egypt’s El Nasr Automotive Manufacturing Company and China’s Dongfeng Motors have signed a deal for electric car production in Egypt. An agreement was signed on June 18, stipulating that El Nasr will produce 25,000 electric vehicles annually.
Not only is this a boon for Chinese car manufacturing, which according to the China Association of Automobile Manufacturers saw a 42 percent decline in the first quarter of 2020, but it also revives Nasr after the company shuttered its production plant in 2009.
This marks yet another expansion of China’s growing footprint in Egypt. Economic and political relations between the two nations go back to 1956, when Egypt formally recognized the communist government of the People’s Republic of China, making it the first Arab and African nation to do so. Since the 2011 Arab Spring, which saw the overthrow of Hosni Mubarak, Egypt’s succeeding presidents Mohammed Morsi and Abdel Fattah el-Sisi have made foreign relations with China a top priority.
For China, Egypt’s strategic location and its ownership of the Suez Canal make it an important ally as it expands its Belt and Road Initiative.