On June 16, 2026, China once again appeared on the banks of the Suez Canal. Zhejiang Hongda Group has signed an agreement with the Suez Canal Economic Zone in Egypt, and a textile city with an investment of 20 million US dollars is about to be built in the western industrial zone of Cantala. This is not only the overseas settlement of a company, but also a signal of the accelerated gathering of China's light industry chain on the North African continent.

Landing Canal Economic Corridor

According to the agreement, Zhejiang Hongda will build a textile manufacturing and processing plant on a land area of 60000 square meters, expected to create 500 job opportunities, and 70% of its products will be sold overseas. The project site selection is highly strategic, located adjacent to the shipping arteries that connect Europe, Asia, and Africa, providing great convenience for the future logistics transportation of the enterprise.

Triple dividend driven layout

Why do companies gather in Egypt? Firstly, thanks to the agreements signed between Egypt, the European Union, and the African Continental Free Trade Zone, production here can enjoy zero tariffs and enter the European, American, and African markets. Secondly, the advantage of high-quality long staple cotton raw materials in the local area, coupled with tax reduction policies provided by the economic zone, has significantly reduced production costs. In addition, the western region of Cantala has formed an industrial cluster, with a total investment of nearly 1.5 billion US dollars in 53 projects, generating significant agglomeration effects. Keywords: the Belt and Road news network, enterprise going to sea

Cluster based export of light industry chain

From photovoltaic energy storage to today's textile and clothing industry, Chinese companies in Egypt are shifting from single point breakthroughs to full industry chain exports. This model of combining Chinese technology with Egyptian manufacturing is opening up a shortcut to the European and African markets. With the establishment of supply chain networks by pioneers, the supporting costs of Chinese enterprises will continue to decrease, and China's power will become increasingly prominent in the wave of industrialization in North Africa.Editor/Gao Xue