China and Egypt's cooperation is multifaceted. (PHOTO: VCG)

By Mohamed Salem

China and Egypt's cooperation is multifaceted, including financial support which comes in many ways: As Panda bond, that is, renminbi-denominated bonds, or as investments with Egypt's large scale national projects supported by many Chinese investors. These are in line with Egypt's sovereign sustainable financing framework and will contribute to Egypt achieving the Sustainable Development Goals.

They are also meant to build a greener economy: the proceeds will be used to finance sustainable projects in a number of sectors, including green transport, healthcare, sustainable water use, renewable energy, affordable housing, digital infrastructure and biodiversity conservation.

Because of international fund limitations, the African Development Bank and the Asian Infrastructure Investment Bank have provided guarantees for the issuance of Panda bonds. This will pave the way for other issuers, particularly other African sovereign states, to access renminbi-denominated financing and China's interbank bond market. The importance of this support is to reduce dependence on the U.S. dollar. Bilaterally, it will lead to more investment and sustainable financing between Egypt and China.

The cooperation also extends to scientific research and vocational training. The Chinese government provides many research and training opportunities for Egyptian graduates. There are also scientific cooperation projects between the research institutions and universities of the two countries, jointly supported by China's Ministry of Science and Technology and Egyptian Academy of Scientific Research and Technology.

Apart from the Talented Young Scientists Program that provides Egyptian PhD holders an opportunity to work in China for a year, Chinese universities also provide many postdoctoral positions for them.

The Chinese language is becoming one of the second languages offered to Egyptian students in prep schools, secondary schools and some universities.

Chinese companies have a unique and successful experience in terms of quick payoffs, quality control and high-tech applications. In the manufacturing and energy sectors, such as green hydrogen production, electricity grids and sewage pumps and water desalination plants, and renewable energy sectors, China has given not only considerable financial support, but also technical help to Egyptian companies.

All this support has strengthened the cooperation between the two nations, making their thinking, and way of work and communication match. I believe China will be the country closest to Egypt and the African continent in the near future.

Mohamed Salem is a professor at the Housing and Building National Research Center, Cairo, Egypt, where he teaches Environmental Chemistry.