Look At The Prospect Of Marriage Between China And Egypt

In ancient times, a silk road was connected with two ancient civilizations.

And today, about

The topic once again linked the two great nations.

In March of this year, AssemRagab, chairman of the Egyptian Investment and Free Zone Bureau, visited China to visit China's textile fields such as Guangdong and Zhejiang. It also intended to attract Chinese textile enterprises to go abroad and enter Egypt.

It indicated that Egypt has initially formed 3 textile industrial clusters: the canal industry cluster centered on the Suez canal city Port Said (PortSaid) and Ismailia (Ismailia), with investment concentrated in the production of coarse denim and the import of coarse cotton yarns; the establishment of factories in Berg Arabia (BorgAl-Arab) and Amreya (Port Said), the Alexander industrial group based on various ports of Hong Kong, and the new industrial center in the greater Cairo region.

All these provide conditions for Egypt to attract textile enterprises to enter.

"The average clothing consumption of Egyptian men is 550 dollars per year, while that for women is more than 900 dollars.

On the contrary, its domestic production capacity is very limited.

Because there are less than 1000 local factories, Egypt needs a large number of imported yarn and finished fabrics from Turkey and other countries. "

It is understood that Egypt's market size in Africa ranks second only to South Africa, and has high demand for high, medium and low grade textiles.

This is a huge business opportunity for Chinese enterprises, whether in trade or investment.

When introducing Egypt's hardware superiority,

To speak, "the average annual output of Egyptian long staple cotton and super long staple cotton accounts for 35% of the world's total.

If you invest in factories, the energy advantage is obvious.

Egypt's electricity bill is 0.3 yuan per time, natural gas is 3.5 yuan per cubic meter, and 93 gasoline is only 2.3 yuan per litre.

In addition, human resources are also very low, with an average monthly wage equivalent to RMB 600 yuan and skilled workers in the industry.

In addition to hardware advantages, Egypt also has expertise in software.

It is believed that Egypt has its own unique technological capability that helps Chinese enterprises learn from each other's strengths and weaknesses.

"Egypt has the most vertically integrated textile industry compared with other Middle Eastern countries.

From cotton (13135, -40.00, -0.30%) to spinning, fabric and garment production, the whole production process can be completed in China.

25% of the textile industry will focus on textile production, of which 12% of home textiles and 8% of cotton yarn, and 5% of other cotton fabrics and textiles.

Most spinning (50%), weaving (60%) and curling (60%) production capacity is owned by public owned enterprises, while 90% of garment making capacity is private enterprise.

Egypt's connection to Eurasia is a necessary way to enter Europe and America, and also a gateway for Africa to face the world.

Investing in the establishment of textile enterprises in Egypt means entering the Egyptian domestic market while facing the Middle East, Africa and major European and American markets.

Taking China's exports to the United States as an example, tariffs in China are about 30%, while Egypt is all tax-free and free from quota restrictions.

In addition, AssemRagab also promised that the Egyptian government would further increase the export subsidy of the textile industry from 8% to 12%, in order to help the growth of the textile industry.