Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam	Location
Beijing	Capital
1.307 billion (by 2005)	Population
National People’s Congress	Political regime
Election is made within the Communist Party of China	Electoral system
HU Jintao	President
LI Zhaoxing	Minister of foreign affairs
BO Xilai	Minister of trade and Industry
Communist Party of China	Governing party
Non	Opposition parties
Multi-Parties participation under the leadership of Communist Party of China	Parliament composition

“All information mentioned below is the latest publicized by Ministry of Commerce and National Bureau of Statistics of China”

Economic Indicators: (last 3 years)

2005	2004	2003
RMB 18232.10 billions	RMB 13651.5 Billion	RMB 11669.4 Billion	GDP
9.9%	9.5%	9.1%	GDP real growth rate
Primary Industry: 12.4% Secondary Industry: 47.3% Tertiary Industry: 40.3%	Primary Industry: 15.2% Secondary Industry: 52.9% Tertiary Industry: 31.9%	· Primary Industry: 14.4% Secondary Industry: 52.2% Tertiary Industry: 33.4%	GDP: composition by sector
US$1703	US$1490	US$1290	GDP- per capita
Renminbi (RMB) US$1=RMB8.07 (year end)	Renminbi (RMB) US$1=8.27 (year end)	Renminbi (RMB) US$1=RMB8.27 (year end)	Currency unit & average of exchange rate against US Dollar
4.2%	4.2%	4.3%	Unemployment rate
1.9	1.6	1.2	Inflation rate
China is the member of all international economic organizations	China is the member of all international economic organizations	China is the member of all international economic organizations	International Economic Agreements
US$762.00 Billions	US$593.36 Billions	US$438.37 Billions	Exports
Japan South Korea ASEAN Taiwan EU USA Australia Russia Hong Kong Saudi Arabia	Japan EU Taiwan ASEAN South Korea USA Russia Hong Kong Australia Brazil	Japan EU Taiwan ASEAN South Korea USA Hong Kong Russia Australia Brazil	Main importing countries
US$660.12 Billions	US$561.38 Billions	US$412.84 Billions	Imports
USA EU Hong Kong Japan ASEAN South Korea Taiwai Russia Canada Australia	USA EU Hong Kong Japan ASEAN South Korea Taiwan Russia Australia Canada	USA Hong Kong EU Japan ASEAN South Korea Taiwan Australia Russia Canada	Main exporting countries
US$818.87 Billions	US$609.32 Billions	US$403.25 Billions	Foreign Currency Reserves
Total: RMB3002.09 Billions Enterprises: RMB1017.51 Billion, Individual: RMB1470.54 Billions)	Total: RMB25318.8 Billion Enterprises: RMB8943.8 Billion, Individual: 12619.60 Billion)	Total: RMB22036.4 Billion Enterprises: RMB7678.5 billion, Individual: RMB11069.5 billion)	Domestic Savings
RMB6717.7 Billions	RMB5395.0 billions	RMB4584.2 Billions	Local Consumption
US$60.30 Billion (Real)	US$60.63 Billion (Real)	US$53.50 Billion (Real)	Foreign investments in the country (inflow)
(Jan-Nov Only) Hong Kong the Virgin Islands Japan South Korea USA Singapore Taiwan Kaiman Islands Germany Samoa	Hong Kong the Virgin Islands Japan South Korea USA Taiwan Singapore West Samoa Kaiman Islands Germany	Hong Kong the Virgin Islands Japan South Korea USA Taiwan Singapore West Samoa Kaiman Islands Germany	Main investing Countries
US$6.9 billion (non-Financial part)	US$5.53 Billion	US$2.9 billion	Investments abroad (outflow)
Not available yet	Hong Kong Kaiman Islands the Virgin Islands USA Macao South Korea Australia Singapore Bermuda Thailand	Hong Kong the Virgin Islands USA Macao Australia South Korea Singapore Thailand Zambia Peru	Main recipient countries
· FTA: o Pakistan (an early period agreement) o ASEAN (Association of Southeast Asian Nations) (Brunei, Indonesia, Malaysia, Burma, Singapore, Thailand, Philippines, Cambodia, Vietnam, Laos) o Chile · CEPA: (Closer Economic Partnership Arrangement) o Hong Kong o Macao · Still in the progress o New Zealand o GCC (Saudi Arabia, Oman, Bahrain, Qatar, Kuwait, UAE) o SACU (South Africa, Botswana, Lesotho, Swaziland, Namibia) o Australia o Brazil (talking about the possibility to set up FTA) o India o Iceland			FTA with other countries

· Corn	· Coal
· Crude oil	· Complete oil
· Cotton yarn	· Cotton Textile
· Plastic products	· Shoes
· Iron and steel	· Containers
· CAM Recorders	· TV
· Camera	· Digital automatic data processing machines and spare parts
· Potable mobile and car mobile	· Motor cycle
· Bike	· Automobile and chassis

Exports

Main Items

· Cereal and cereal powder	· Soybean
· Edible oil	· Natural rubber
· Synthetic rubber	· Paper pulp
· Iron ore and its concentrate	· Aluminium
· Crude oil	· Complete oil
· . Plastic in primary form	· Paper and paperboard
· Steel	· Un-forged copper and copper material
· Un-forged aluminium and aluminium material	· .Digital automatic data processing machines and spare parts
· Portable mobile and car mobile	· Automobile and chassis

Imports

Main Items

Foreign trade policy (main elements):-

· As a move to liberalize trade, China has continued to reduce administrative barriers to trade by increasingly switching to the use of tariffs and exchange rates adjustments.

· The Chinese government has gradually abolished the state monopoly of foreign trade and liberalize its foreign trading system.

· In addition, the central government has also introduced tariff-free and VAT-exemption imports of capital equipment for projects within the hi-tech and priority sectors such as energy, agriculture, transport, infrastructure, production of raw materials, and tertiary industries, as well as in the pillar industries. These moves are targeted to attract high-quality overseas investment, introduce high technologies and know-how to rationalize the country's industrial structure.

· All foreign-invested export-processing enterprises are required to pay VAT on imported raw materials, parts and components. Upon exports, the amount of VAT paid will be used to offset the VAT payable for the part of domestic sale goods. Excess will be rebated (“exemption, deduction and rebate”).

Industry:

· Industrial structure: industry refers to the material production sector which is engaged in extraction of natural resources and processing and reprocessing of minerals and agricultural products. Prior to 1984, the rural industry run by villages and cooperative organizations under village was classified into agriculture. Since 1984, it has been grouped into industry. Industry includes;

o Extraction of natural resources, such as: mining, salt production

o Processing and reprocessing of farm and sideline produces, such as rice husking, flour milling, wine making oil pressing, silk reeling, spinning and weaving, and leather making

o Manufacturing of industrial products, such as steeling making, iron smelting, chemicals manufacturing, petroleum processing, machine building, timber processing, water and gas production and electricity generation and supply,

o Repairing of industrial products such as the repairing of machinery and means of transport

· Main industrial sectors (..%)

o (ex. Engineering … %, Electronics…%, ….) Classification is not provided by the Chinese Authority

· The output of the main industrial products in 2005

Products	Unit	Output	Increase/decrease
Yarn	10000tons	1440	11.5%
Clothes	100millions meter	470	11.9%
Chemical fibre	10000tons	1618	13.6%
Complete sugar	10000tons	903	-12.6%
Cigarettes	100millions piece	19560	4.4%
Color TV	10000 sets	8283	11.5%
Household Refrigerator	10000 sets	2986	-0.7%
Household air-conditioner	10000tons	6765	5.9%
One-time Energy	100million tons standard coal	20.6	9.5%
Crude coal	100 millions tons	21.9	9.9%
Crude oil	100 millions tons	1.81	2.8%
Natural Gas	100millions cubic meters	500	12.3%
Power Generation	100 million kilowatt hour	24747	12.3%
Crude steel	10000 tons	35239	24.6%
Steel materials	10000 tons	39692	24.1%
10 kinds of non-ferrous metals	10000 tons	1635	13.2%
Aluminum	10000 tons	851	21.9%
Cement	100 million tons	10.6	10.0%
Sulphuric acid	10000 tons	4529	15.3%
Soda Ash	10000 tons	1467	9.9%
Ethylene	10000 tons	756	20.0%
Fertilizer	10000 tons	5220	8.6%
Power Generating Equipment	10000 Kilo watt	9200	28.9%
Car	10000 vehicles	570	12.1%
Car	Sedan: 10000 Vehicles	277	19.7%
Large/Medium Tractors	10000 set	16.2	42.7%
Integrated Circuits	100 million pieces	266	12.9%
Program-Controlled Switchboard	10000	7721	1.3%
Mobile	10000 piece	30354	6.4%
Mini Electronic Computer	10000 piece	8084	35.3%

· Industry Growth rate: In 2005, the added value of the industry as a whole was RMB 7619 billions, 11.4% up than the previous years.

· Growing industries (2005 only)

Coal industry: 9.9%	Power generation: 12.3%
Crude oil: 2.8%	Crude steel: 24.6%
Steel: 24.1%	Cement: 10.6%
Non-Ferrous: 13.2%	Petrochemical: 9.9%-21.4%
Car: 12.1%

· Diminishing industries (2005 only)

Sugar: -12.6%	Household refrigerator: -0.7%
Paraffin: -21.1% (December)	Gasoline –3.6% (December)
Engine: -4.2% (December)	Special Package equipment: -9.9% (December) :

Current position of the country regarding WTO issues and negotiations (Trade in agriculture products- trade in non- agriculture products- trade in services:

China officially became a WTO member on 11 December 2001. Under China's WTO accession agreement, China made substantial market access commitments covering the agricultural, industrial and services sectors:

· Phase-out of non-tariff barriers on imports - Import license requirements will be eliminated within five years of accession, and all quotas will be phased out within five years of accession.

· Tariff cuts - average import tariffs for industrial products will be lowered from currently 14.8% to 8.9% by 2005, and average tariff for agricultural products will be cut to 15% by 2004.

· Conditions on foreign investment - The WTO Agreement on Trade-related Investment Measures (TRIMs) will be implemented, requirements on trade and foreign-exchange balance, local content, and export performance will be ceased or eliminated.

· Trading rights - China agrees to provide trading rights to foreign companies, to be progressively phased in over three years. Majority ownership in wholesale joint ventures will be allowed within 2 years of accession with no geographic or quantitative restriction by then. There will be no geographic, quantitative, equity/form of establishment restriction in retailing within 3 years of accession.

· Open-up of other services - China has also agreed to relax foreign investment restrictions on many important services industries, including distribution services, telecommunications, financial services, professional services. For value-added services in telecommunications, foreign partners will be able to own up to 50% with no geographic restriction within 2 years after accession. For mobile voice and data services, foreign operators can own 25% upon accession, and rise to 35% one year after accession and further to 49% after 3 years. Foreign banks will be able to conduct local currency business with Chinese enterprises 2 years after joining the WTO, and all geographic and client restrictions will be removed within 5 years after accession. For non-life insurance, branch or JVs with 51% foreign ownership will be allowed upon accession. Wholly-owned subsidiaries will be allowed in 2 years. For life insurance, JVs with 50% foreign ownership will be allowed upon accession.

II: Bilateral Trade and Economic relations between Egypt and China

a. Contractual Framework Agreements:

Date of entry into force	Agreement
v (signed on 04/08/1985)	v Trade Agreement
v (signed on 21/04/1994)	v Bilateral Investment Protection Agreement
v (signed on 25/03/1995)	v Agreement for Economic and Commercial Cooperation
v (signed on 24/03/1999)	v Avoidance of Double Taxation
v (signed on 05/04/1999)	v Agreement for Cooperation in Maritime Transportation
v (signed on 05/04/1999)	v Protocol of Cooperation in Agriculture
v (signed on 05/04/1999)	v Agreement for Economic and Scientific Cooperation
v (signed on 24/01/2002)	v Agreement for Establishing Egypt-China Business Council
v (signed on 29/01/2004)	v Memorandum of Understanding for Investment Cooperation in the Special Economic Zone in Suez
v (signed on 29/01/2004)	v Agreement in Mining Field

b. Trade flow during the period (2002-2005):

(Million $)

Mutation %	2005	Mutation %	2004	Mutation%	2003	2002	Item/ Year
12.5%	211.4	22.97%	187.9	66.08%	152.8	92	Egyptian Exports
38.34%	1934.1	49.15%	1398.0	9.88%	937.3	853	Egyptian Imports
35.28%	2145.5	45.48%	1585.9	15.35%	1090.1	945	Trade Volume
	1722.7-		1210.1-		784.5-	761-	Trade Balance

Source: China customs bureau

Ø Top 10 Egyptian Exports to China:

A. Top 10 Egyptian Exports in 2002:

Million $

H.S. Code	Product	Value	% Of total in 2002
25 15 12 25 15 11	Marble and travertine	48.5	52.71%
25 01 00	Cotton, not carded or combed	10.1	10.79%
53 01 21	Flax, broken or scotched	9.2	10%
72 08 39	Other iron in coils, of thickness of less than 3mm	3.9	4.23%
27 10 19	Heavy oils and preparations	3.4	3.69%
48 11 59	Other paper and paperboard coated, impregnated or covered with plastics	2	2.17%
72 08 38	Other hot-rolled iron in coil, thickness more than 3mm but less than 4.75mm	1.8	1.95%
57 03 20	Carpets and other textile floor coverings, of nylon or other polyamides	1.75	1.90%
39 01 20	Polymers of ethylene in primary forms, specific gravity ≥0.94	1.44	1.56%
53 01 30	Flax tow and waste	1.15	1.25%

Source: China customs bureau

B. Top 10 Egyptian Exports in 2003:

Million $

H.S. Code	Product	Value	% Of total in 2003
25 15 12 25 15 11	Marble and travertine	67.98	44.48%
53 01 21	Flax, broken or scotched	15.14	9.90%
27 09 00	Petroleum oils and oils obtained from bituminous minerals, crude	14.04	9.18%
25 01 00	Cotton, not carded or combed	12.59	8.23%
87 03 23	Saloon cars of a cylinder capacity exceeding 1500cc but not exceeding 3000cc	9.93	6.49%
72 08 39	Other iron in coils, of thickness of less than 3mm	6.88	4.50%
72 08 28	Other hot-rolled iron in coil, thickness more than 3mm but less than 4.75mm	4.14	2.70%
39 01 20	Polymers of ethylene in primary forms, specific gravity ≥0.94	4.10	2.68%
53 01 30	Flax tow and waste	2.69	1.76%
72 08 37	Hot-rolled iron or non-alloyed steel, thickness more than 4.75mm but less than 10mm	1.78	1.16%

Source China customs bureau

C. Top 10 Egyptian Exports in 2004:

Million $‎

H.S. Code	Product	Value	% Of total in 2004
25 15 12 25 15 11	Marble and travertine	86.21	45.8%
72 08 39	Other iron in coils, of thickness of less than 3mm	28.63	15.2%
52 01 00	Cotton, not carded or combed	12.16	6.4%
39 01 20	Polymers of ethylene in primary forms, specific gravity ≥0.94	6.77	3.6%
53 01 21	Flax, broken or scotched	6.48	3.4%
26 02 00	Manganese ores and concentrates	6.26	3.3%
72 08 38	Other hot-rolled iron in coil, thickness more than 3mm but less than 4.75mm	5.68	3%
53 01 30	Flax tow and waste	4.68	2.5%
74 02 00	Unrefined copper, copper anodes from electrolytic refining	4.37	2.3%
39 07 60	Poly (ethylene terephthalate(in primary forms	2.97	1.4%

Source China customs bureau

D. Top 10 Egyptian Exports in 2005:

Million $

H.S. Code	Product	Value	% Of total in 2002
2515	Marble	75	55
7208	Iron and steel	47.3	7 times increase
5201	Cotton	25	150
39	Plastics and articles thereof	24.6	16 times increase
2709	Crude oil	16	4 times increase
5301	Flax	12.5	10.6
5703	Carpets	2.4	9
74	Copper	2	7 times increase
8421	Filters	1.2	9 times increase
290723	Organic chemicals	0.6	New
7018	Glass and glass wear	0.8	33
9405		0.6	50
8538		0.5	New
2004		0.4	New
540410		0.2	New

Source : China customs bureau

Ø Top 10 Egyptian Imports from China:

A. Top 10 Egyptian Imports in 2002:

Million $

H.S. Code	Product	Value	% Of total in 2002
98 01 00	Import goods exempted from the levy of customs duties and not subject to license control value not more than RMB2000	94.04	11.02%
61 08 32	Women’s or girls’ nightdresses and pyjamas knitted or crocheted of man-made fibres	15.38	1.8%
40 11 20	New pneumatic tyres of rubber, a kind used on buses or lorries	14.46	1.69%
88 03 30	Other parts of aeroplanes or helicopters	12.13	1.42%
84 14 51	Fans with an output not exceeding 125W	12.03	1.41%
42 02 12	Trunks and suit-cases with outer surface of plastics or of textile materials	11.83	1.38%
32 06 42	Pigments and preparations based on zinc sulphide	10.68	1.25%
84 81 80	Other valves, taps, and similar appliances	9.85	1.15%
07 13 33	Kidney beans	9.57	1.12%
69 11 10	Tableware and kitchenware of porcelain	8.54	1%

B. Top 10 Egyptian Imports in 2003:

Million $

H.S. Code	Product	Value	% Of total in 2003
98 01 00	Import goods exempted from the levy of customs duties and not subject to license control value not more than RMB2000	28.53	3.04%
24 01 20	Tobacco, partly or wholly stemmed/stripped	21.50	2.29%
61 08 32	Women’s or girls’ nightdresses and pyjamas knitted or crocheted of man-made fibres	17.38	1.85%
85 26 10	Radar apparatus	17.11	1.82%
84 81 80	Other valves, taps and similar appliances	16.24	1.73%
40 11 20	New pneumatic tyres of rubber, a kind used on buses or lorries	15.31	1.63%
62 03 42	Men’s or boys’ trousers of cotton	14.76	1.57%
88 03 30	Other parts of aeroplanes or helicopters	13.72	1.46%
74 14 51	Fans with an output not exceeding 125W	12.68	1.35%
10 05 90	Other maize	11.33	1.20%

C. Top 10 Egyptian Imports in 2004:

Million $

H.S. Code	Product	Value	% Of total in 2004
05 04 00	Guts, bladders and stomach of animals, fresh, chilled, frozen, salted	52.70	3.76%
98 01 00	Import goods exempted from the levy of customs duties and not subject to license control value not more than RMB2000	43.55	3.11%
24 01 20	Tobacco, partly or wholly stemmed/stripped	41.25	2.95%
54 07 52	Dyed woven fabrics, containing ≥ 85% by weight of textured polyester filaments	36.98	2.64%
61 08 32	Women’s or girls’ nightdresses and pyjamas knitted or crocheted or man-made fibres	22.23	1.59%
84 81 80	Other valves, taps, and similar appliances	19.89	1.42%
80 03 30	Other pars of aeroplanes or helicopters	17.79	1.27%
61 04 23	Women’s or girls’ ensembles, knitted or crocheted of synthetic fibres	15.87	1.13%
62 03 42	Men’s or boys’ trousers of cotton	15.69	1.12%
84 26 19	Other cranes and Straddle carriers	15.40	1.10%

D. Top 10 Egyptian Imports in 2005:

Million $

H.S. Code	Product	Value	% Of total in 2002
61 – 63	Articles of apparel and clothing	230	564
From 50 to 60	Textiles and textiles articles	245	345
84	Machinery & mechanical ; appliances; parts	300	488
86 –87	Transport equipment	299	530
85	Electrical machinery and equipments	240	674
28 –29	Products od chemical ( organic and inorganic)	115	882
72 – 80	Base metals	110	900
39	Plastics and articles thereof	73	958
82 – 83	Tools, cutlery, spoons and forks	71.5	1832
64	Footwear	48	252

Source : China customs bureau

c. Investment:

- Over the period 1970 up until March 2006, Chinese companies have established joint ventures with their Egyptian counterparts of approximately EGP 406.74 million of inland investment with a participation share equivalent to 56.01% (EGP 227.8 million). The Chinese companies hold stakes in 203 inland investment establishments. - Additionally, Chinese investors have established nine companies in the Free Zones with about USD 27 million with a participation share equivalent to 58.67% (USD 15.84 million).	Total investments in Egypt
- Inland Investment: The industrial projects keep 78.31% of the total Chinese participation with 82 spinning and weaving companies amounting EGP 94.51 million in (98% of the total issued capital). The construction projects come in the second rank holding 16.51% of the total Chinese participation amounting EGP 37.62 million in three projects (one contracting project with 50% of the company issued capital). - Free Zones Investment: concentrated in 1 petroleum services company with an inflow amounted USD 9 million.	Main investment sectors
- Inland Investment: Suez Egyptian Chinese for contracting development with participation amounted of EGP 21.9 million, Egypt Daytem for technological (Engenneering Co.) with participation of EGP 3.7 million and Chinese Co. fo Wool (Weaving and Spinning) with EGP 3.6 million. - Free Zones: Chino for drilling with Chinese participation of USD 9 million, Egyptian Chinese Co. for non woven textile with Chinese participation of USD 1 million .	Main Companies investing in Egypt