Xi and Sisi Hold Summit Talks: China Backs Egypt on Nile Water Rights, Gaza Ceasefire, and Suez Canal Investment

Xi Jinping and Abdel Fattah el-Sisi held formal summit talks in Cairo on September 2, 2026, agreeing to a slate of economic agreements spanning artificial intelligence, transport, energy, and further investment in the Suez Canal Economic Zone, including a third-phase expansion of the China-Egypt TEDA Suez Economic and Trade Cooperation Zone, where more than 200 companies have already invested. A joint statement saw China recognize the Nile as Egypt's 'main lifeline' and Cairo's 'legitimate right to protect its water and food security,' with both leaders calling on Nile Basin states to observe international law's 'obligation not to cause harm' — language read as backing Egypt's position in its dispute with Ethiopia over the Grand Ethiopian Renaissance Dam. The two governments also called the Palestinian cause 'the central issue in the Middle East,' urged consolidation of the Gaza ceasefire and unrestricted humanitarian access, and rejected any Palestinian displacement, while Egypt reaffirmed the one-China principle and support for Beijing's position on Taiwan. Bilateral trade reached roughly $20.8 billion in 2025, up from $17.4 billion in 2024, with China's trade surplus with Egypt at about $12 billion in the first seven months of 2026 and existing Chinese investment in Egypt estimated near $10 billion.