China’s Xi arrives in Egypt amid US sanctions threat over Iran links

Egyptian and Chinese banks could be hit by Washington’s boosted sanctions regime; Beijing seeking to prop up relations with US-friendly nations ahead of Xi-Trump meeting

Egypt’s President Abdel Fattah al-Sisi, center right, and his wife Entissar Amer, right, welcome China’s President Xi Jinping and his wife Peng Liyuan as they arrive at Cairo International Airport, Cairo, Egypt, for an official visit to Egypt, September 1, 2026. (Khaled Desouki/Pool photo via AP)
Egypt’s President Abdel Fattah al-Sisi, center right, and his wife Entissar Amer, right, welcome China’s President Xi Jinping and his wife Peng Liyuan as they arrive at Cairo International Airport, Cairo, Egypt, for an official visit to Egypt, September 1, 2026. (Khaled Desouki/Pool photo via AP)

CAIRO, Egypt — Chinese President Xi Jinping arrived in Egypt on Tuesday on a rare trip to the Middle East as both countries face the threat of US sanctions over financial links to Iran.

Xi and his wife were greeted on the tarmac by Egyptian President Abdel Fattah al-Sissi and the first lady, as well as a performance by an Egyptian folk dance troupe.

The two-day visit comes as both countries seek to manage the fallout of the months-long Middle East war, which began when the United States and Israel launched strikes against Iran on February 28, throwing the crucial trade region into crisis.

Washington vowed last month to destabilize Iran economically, warning of expanded sanctions against Tehran’s backers and partners that could hit Egyptian and Chinese banks, among others.

Xi’s visit “comes at a time when China’s economic interests are directly exposed to the US-Iran war,” said Gamal Salama, political science professor at Egypt’s Suez University.

China, a major buyer of Iranian oil, has presented itself as a neutral party in the Middle East conflict, repeatedly calling for a lasting ceasefire.

Egypt, a long-time recipient of US military aid, warned against regional escalation after a drone strike hit one of its ports in July.

Artists perform as Chinese President Xi Jinping, centre left, is welcomed by Egyptian President Abdel Fattah al-Sisi, centre, at Cairo International Airport in Cairo, Egypt, September 1, 2026. (Khaled Desouki/Pool photo via AP)

China is “clearly seeking Egypt’s cooperation in managing and shaping regional affairs,” said Liu Jia, a research fellow at the Singapore-based Middle East Institute.

Beijing works closely with regional actors such as Egypt, which mediates between Israel and Palestinian groups, Liu added.

Both China and Egypt support an independent Palestinian state as part of a two-state solution.

“China sees Cairo as a strategic power broker,” said Salama.

Egypt’s “relations with both Washington and regional actors give Beijing both political access and diplomatic leverage across a region where China wants a much greater say,” he added.

‘Renewing the friendship’

As part of its economic pressure campaign targeting Iran, Washington last week said it would cut off the operations of Egypt’s Banque Misr in the UAE from the US financial system.

China, in response to the US measures and threats, has vowed to safeguard its interests.

Beijing has also sought to shore up ties with US-friendly regional nations ahead of a meeting between Xi and US President Donald Trump expected this month.

In this undated file photo released by the Taiwan Ministry of Defense, a Chinese PLA J-16 fighter jet flies in an undisclosed location. (Taiwan Ministry of Defense via AP)

The Chinese and Egyptian militaries carried out joint air combat exercises in August that featured Beijing’s powerful J-16 fighter jet.

Xi’s meeting with his Egyptian counterpart, Sissi, scheduled for Wednesday, follows a visit to Beijing by Jordan’s King Abdullah II, whose country has also been caught up in the US war with Iran.

Xi and Sissi are expected to discuss issues including the Gaza war, Iran, and shipping in the Red Sea and the Strait of Hormuz, according to Egyptian media.

“I look forward to renewing the friendship and working together with President Sissi to… map out a new blueprint for deepening the China-Egypt comprehensive strategic partnership,” Xi wrote in an editorial published in Egyptian media on Tuesday.

The Chinese leader’s first visit to Egypt in a decade comes as the two nations mark 70 years of diplomatic ties.

China is a major exporter to Egypt, with its trade surplus reaching $12 billion in the first seven months of 2026, according to Chinese customs data.

The leaders are expected to sign agreements on artificial intelligence, transport, energy and investment in the Suez Canal Economic Zone, Egyptian media reported.

The meeting with Xi sets Cairo up to land Chinese investments in its local AI and electronics industries, political scientist Salama said.

“What Egypt is seeking is strategic autonomy: not breaking with Washington, not aligning completely with Beijing, but creating enough room to pursue its own national interests,” he added.

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