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Why Egypt has become a bridgehead for Chinese textile enterprises

Why Egypt has become a bridgehead for Chinese textile enterprises

Egypt has a huge market potential, a weak local industrial foundation, and low textile and apparel production capacity. The African market has become a new venue for Chinese textile companies to compete, and Egypt has become the first stop for many Chinese textile companies to explore the African market. However, according to the analysis of the China-Africa Trade Research Center, there are many reasons why Chinese textile enterprises are optimistic about the Egyptian textile and apparel market.
 
1. Good policy environment
Egypt's import and export trade is dominated by imports and has a certain dependence on the international market. In order to promote the development of foreign trade, Egypt has adopted a series of measures such as further trade liberalization, tariff reduction, lower operating costs, enhanced transparency of foreign trade management, and incentive measures to improve port services, customs procedures, quality control and product standards. All these have provided a good market environment for foreign companies to enter the Egyptian and Middle Eastern markets.
 
2. Huge market potential
Egypt's textile and apparel market is the second largest in Africa, second only to South Africa, and there is a huge demand for high, medium and low-end textiles. The average consumption of clothing for Egyptian men is 550 US dollars per year, while for women it is more than 900 US dollars. In contrast, Egypt has limited production capacity. There are less than 1,000 local factories in Egypt, and large quantities of yarns and finished fabrics need to be imported from other countries. For Chinese companies, both in terms of trade and investment, there are huge business opportunities.
 
textile instrument company
3. Favorable geographical location
Egypt connects the Eurasian continent. It is not only the only way to enter Europe and the Americas, but also Africa’s gateway to the world. It also has a sea, air and land transportation network that connects countries in Europe, Asia, and Africa, and connects with African countries. The transportation is convenient. Therefore, in addition to its high demand, Egypt is also a distribution center for textile import and export trade.
For Chinese companies, investing in the establishment of textile companies in Egypt means that in addition to entering the Egyptian domestic market, they also face the Middle East, Africa, and major European and American markets.
In addition to significantly reducing transportation costs, the free trade agreements between Egypt and the European Union, COMESA and Arab countries, and the Qualified Industrial Zone (QIZ) agreements signed with Israel and the United States, under the concessions of these agreements, Effectively avoiding trade barriers can more actively produce clothing and textiles and export them to EU countries and the United States.
 
4. China-Egypt political advantages
In addition to the aforementioned advantages of the Egyptian market, Chinese companies also have political advantages in exploring the Egyptian textile and apparel market. Among African countries, Egypt is the first country to establish diplomatic relations with China. The economic and trade cooperation between China and Egypt has maintained a rapid and healthy development momentum in recent years and has become a highlight of China-Africa cooperation. The Egyptian government also expressed through various channels that Egypt’s economic recovery plan hopes to attract the attention of Chinese companies. This is very good news for Chinese companies.
 
China-Africa Trade Research Center analyzes that the reason why Egypt has become the preferred entry point for many Chinese textile companies to explore the African market is that in addition to the advantages and temptation of the Egyptian market itself, it also benefits from the long-standing political, economic and trade advantages of China and Egypt. Partnership. At a time when Chinese textile companies can "go global" to get rid of the current downturn in the industry, Egypt and the entire African market will undoubtedly become a new hope for the transformation and upgrading of China's textile and apparel industry.

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