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in early 2011， egypt underwent turbulence after the Arab spring. then two regime changes， three constitutional amendments， six referendums and frequent cabinet reshuffles followed. But with President Abdel Fattah al-sisi taking power last June， the country has finally tilted toward stability. Liao Baizhi， an associate research fellow with the china institutes of contemporary international Relations， says this has opened up a host of possibilities for cairo to regain its regional stature. excerpts of his arguments follow：
THE Abdel Fattah al-Sisi administration has won the support of the armed forces， police and the judiciary. Egypt has introduced new legislation regulating demonstrations and an anti-terrorism law， which have played a positive role in maintaining political stability. Although opposition groups continue to fight， their strength and influence has weakened. Even persistent unrest in the Middle East and the increased threat of terrorism has been unable to shake Egypt’s new foundation of stability. So far， the first two parts of the Sisi administration’s three-step political reform roadmap - drafting and ratifying a new Constitution and electing a president through a democratic process - have been completed. The third step of holding a parliamentary election is being implemented. The transparency of the process has earned the new government legitimacy and recognition from the international community.
Egypt’s underdeveloped economic structure and weak industrial base have long contributed to dependence on foreign aid. About 40 percent of Egyptians live below the poverty line. The Arab Spring and ensuing chaos resulted in the withdrawal of large amounts of foreign investment. Sisi has resolutely slashed energy subsidies by 40 percent （about $5.2 billion） and implemented a new economic stimulus plan. In recent months， foreign investment began returning gradually. In March， about 2，500 people from nearly 100 countries attended the Egypt Economic Development Conference in Sharm el-Sheikh. During the three-day event， Egypt signed direct investment contracts worth $36.2 billion， undertook $18.6 billion in financed projects and won $5.2 billion in loans from international institutions.
The Sisi administration has prioritized developing infrastructure and the energy sector. It is constructing a new Suez Canal parallel to the current channel and is also investing $11.8 billion to turn the Suez Canal banks into a global economic zone. Other ambitious plans include a $45-billion new capital city， a $1.97-billion desert reclamation project， highways and a high-speed railway crossing five provinces. The government has signed 35 agreements with foreign energy enterprises on oil and gas exploration， including a $12-billion contract with British Petroleum. It will also invest in wind， solar and nuclear energy development. The International Monetary Fund estimated Egypt’s economic growth in 2015 will reach 3.8 percent from last year’s 2.2 percent. China has always viewed Egypt as a dependable partner in the Middle East. Egypt was the first Arab country to establish diplomatic relationship with the People’s Republic of China after its founding in October 1949. During Sisi’s Beijing trip last December， China and Egypt upgraded their strategic cooperative partnership to a higher-level comprehensive strategic cooperative partnership.
From an economic perspective， Egypt can act as the bridgehead of China’s Belt and Road Initiatives in the Middle East. It can also serve as a connection for China to exercise soft-power diplomacy in the Middle East. Egypt is a widely known cultural power in the region， with its films and literature popular throughout the Arab world.
At the same time， Egyptians have a keen interest in Chinese culture and values. Chinese is currently taught in 10 Egyptian universities and Egypt is home to two Confucius institutes and the oldest Chinese culture center in the region. China should make full use of these advantages to guarantee a successful “Year of China” in Egypt in 2016.
THE Abdel Fattah al-Sisi administration has won the support of the armed forces， police and the judiciary. Egypt has introduced new legislation regulating demonstrations and an anti-terrorism law， which have played a positive role in maintaining political stability. Although opposition groups continue to fight， their strength and influence has weakened. Even persistent unrest in the Middle East and the increased threat of terrorism has been unable to shake Egypt’s new foundation of stability. So far， the first two parts of the Sisi administration’s three-step political reform roadmap - drafting and ratifying a new Constitution and electing a president through a democratic process - have been completed. The third step of holding a parliamentary election is being implemented. The transparency of the process has earned the new government legitimacy and recognition from the international community.
Egypt’s underdeveloped economic structure and weak industrial base have long contributed to dependence on foreign aid. About 40 percent of Egyptians live below the poverty line. The Arab Spring and ensuing chaos resulted in the withdrawal of large amounts of foreign investment. Sisi has resolutely slashed energy subsidies by 40 percent （about $5.2 billion） and implemented a new economic stimulus plan. In recent months， foreign investment began returning gradually. In March， about 2，500 people from nearly 100 countries attended the Egypt Economic Development Conference in Sharm el-Sheikh. During the three-day event， Egypt signed direct investment contracts worth $36.2 billion， undertook $18.6 billion in financed projects and won $5.2 billion in loans from international institutions.
The Sisi administration has prioritized developing infrastructure and the energy sector. It is constructing a new Suez Canal parallel to the current channel and is also investing $11.8 billion to turn the Suez Canal banks into a global economic zone. Other ambitious plans include a $45-billion new capital city， a $1.97-billion desert reclamation project， highways and a high-speed railway crossing five provinces. The government has signed 35 agreements with foreign energy enterprises on oil and gas exploration， including a $12-billion contract with British Petroleum. It will also invest in wind， solar and nuclear energy development. The International Monetary Fund estimated Egypt’s economic growth in 2015 will reach 3.8 percent from last year’s 2.2 percent. China has always viewed Egypt as a dependable partner in the Middle East. Egypt was the first Arab country to establish diplomatic relationship with the People’s Republic of China after its founding in October 1949. During Sisi’s Beijing trip last December， China and Egypt upgraded their strategic cooperative partnership to a higher-level comprehensive strategic cooperative partnership.
From an economic perspective， Egypt can act as the bridgehead of China’s Belt and Road Initiatives in the Middle East. It can also serve as a connection for China to exercise soft-power diplomacy in the Middle East. Egypt is a widely known cultural power in the region， with its films and literature popular throughout the Arab world.
At the same time， Egyptians have a keen interest in Chinese culture and values. Chinese is currently taught in 10 Egyptian universities and Egypt is home to two Confucius institutes and the oldest Chinese culture center in the region. China should make full use of these advantages to guarantee a successful “Year of China” in Egypt in 2016.