U.S. President Donald Trump's tariff offensive against China is prompting Chinese export corporations to seek alternative markets. In particular, Egypt is gaining China's attention as a potential substitute for the U.S. Local media reported that over 2,000 Chinese corporations are currently investing in Egypt, and several Chinese export corporations are considering new investments in Egypt this year.
According to the South China Morning Post (SCMP) on the 7th (local time), Beifa, one of China's largest stationery companies, is facing a closure in the U.S. market. Beifa, headquartered in Ningbo, Zhejiang Province, reports annual exports to the U.S. reaching $60 million (approximately 83.9 billion won). This company, which generated 40% of its overall revenue from the U.S., has recently had to abandon contracts worth tens of millions of dollars due to President Trump's tariff policies.
Beifa was also preparing for a listing on the New York Stock Exchange, but the increasing tensions between the U.S. and China have raised uncertainties, putting a red light on the listing as well. Beifa has reportedly been advised by the government to reduce its capital exposure in the U.S. market. Chu Bojing, the second-generation vice president, noted in an interview with foreign media at the end of last month that "the uncertainty in trade with the U.S. has led to a temporary suspension of shipments," adding, "We are currently in a situation where we can only read the room regarding negotiations with U.S. partners (in politics and the market)."
Beifa is utilizing its existing production base in Vietnam to export to the U.S. indirectly. Fortunately, recent tariff exemptions for Vietnam have provided some relief, but Beifa is exploring export strategies that bypass Southeast Asia in the long term.
Beifa has identified Egypt as its future base. Vice President Chu stated, "Egypt is likely to be excluded from additional sanctions from the U.S. since it is currently in a deficit in trade with the U.S.," adding that "at this moment, only a 10% basic tariff is being imposed, making it a relatively safe option." Beifa is considering plans to establish local production facilities in Egypt in the future.
베이파가 미래 거점으로 낙점한 곳은 이집트다. 추 부사장은 “이집트는 미국과의 무역에서 적자 상태이기 때문에, 미국의 추가 제재 대상에서 제외될 가능성이 높다”며 “현재로선 10%의 기본 관세만 부과되고 있어 비교적 안전한 선택지”라고 설명했다. 베이파는 향후 이집트 현지 생산기지를 세우는 방안을 검토 중이다.
In fact, Egypt is regarded as a gateway to the European market and the emerging markets of Africa. According to Egypt Today, more than 8% of global trade passes through the Suez Canal Economic Zone (SCZone), which is located in Egypt. The relatively low labor costs and a large domestic market with a population of over 100 million are also significant features. Reports indicate that over 2,000 Chinese corporations have already entered the Egyptian market, investing more than $8 billion (approximately 11 trillion won).
The government is also actively working to attract foreign investment. Egypt Today reported, "Egypt's economic policies are designed to attract foreign investment, and special economic zones like SCZone offer various incentives to foreign manufacturing corporations," noting, "The Egyptian government regularly invites Chinese delegations to attract new investments, especially since the number of Chinese visits to Egypt has increased this year."
Mustafa Ibrahim, vice chairman of the Chinese Committee of the Egyptian Chamber of Commerce, predicted that China's investments in Egypt this year will reach between $2 billion and $3 billion (approximately 2.8 trillion to 4.2 trillion won). He noted that "20 to 30 Chinese corporations exporting clothing, textiles, and electronic appliances are considering entering the Egyptian market this year."