China Build Special Economic Zone in Egypt
Economy May 17th, 2010
SHANGHAI – China’s government would build a new investment zones in Egypt to facilitate market access to Europe, Africa and the Middle East.
According to newspaper Financial Times, Egypt was currently negotiating with the Government of China through Tianjin Economic-Technological Development Area (TEDA).
New investment centers strategically located in the south of the Suez Canal. Based on the rules applicable in Egypt, China companies will control 49 percent maximum share of the total investment of USD1, 5 billion economic zone.
“Suez economic zone will be the first and allow large investors to connect in here,” said Egyptian Minister of Investment Mahmoud Mohieldin yesterday.
He added that the final agreement of cooperation will be achieved in the near future. Unfortunately, TEDA has not confirmed the plan related. Mohieldin estimates, in the first three years of special economic zones can absorb an investment of $ 3, 5 billion.
The sectors which China is the target of natural resources such as energy to meet its domestic needs. Financial Times report said, China is interested in projects to improve trade with Egypt State Panda that would be the entrance to the European region, Africa and the Middle East.
“TEDA has become a partner of multinational companies such as Akzo Nobel, IBM, and Toyota is expected to open their sales offices in Egypt in June of this,” wrote the newspaper.
Communication and Information Minister Tarek Kamel said Mesih, China cooperation with Egypt in the Suez Canal will provide benefits to both countries, including creating jobs for the citizens of Egypt. “They can take advantage of market growth, but can also petrify us with socioeconomic development,” he said.
Swap Transactions Reaches USD170 Million
China’s commercial banks managed to absorb the funds of USD170 billion of foreign currency trading throughout 2009. Largest revenue primarily from yuan currency swap with the United States dollar (CAD).
Shanghai Securities News quoting a former Deputy Head of National Tax Bureau stating that Xu Shanda Administration Center Currency Trade (SAFE) to record the absorption swap in China to reach one trillion yuan.
Xu predicted, these swap funds could increase to $ 500 billion this year from a total of $ 3 trillion swap funds from the global financial system. Meanwhile, the four major commercial banks owned by the Government of China is reported to have disbursed loans of 300 billion yuan during February and up 34 percent compared to January.
Four banks are Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and China Agriculture Bank. The experts are asked to comment by People’s Daily Online estimate, the total bank loans last month to reach 600 billion yuan
