Polar Silk Road Challenge to Sino-Egyptian Economic Relations in the Belt and Road Era

Abstract

ABSTRACT ‘Belt and Road Initiative (BRI)’, Egypt’s geostrategic location and policy preferences unite China and Egypt on various subjects, including trade, investment, and finance. Egypt is just one of many actors that have joined the BRI, but due to its possession of the Suez Canal, it is of special interest to China. This article investigates the dynamics of Sino-Egyptian economic relations following the launch of BRI. As an Initiative to establish ‘connectivity’, BRI seeks to develop the transportation infrastruct ure along the routes, with Egypt serving as a hub. Although Egypt benefits from Chinese investments and financing, bilateral economic relations face a solid challenge. That is the process of developing the Polar Silk Road (PSR), which will be enabled by rapid de-icing in the Arctic. The article questions how much the PSR threatens Egypt’s central role in the BRI. Based on relevant data, it concludes that the PSR may lower Egypt’s worth to China.