BEIJING, Sept. 10 (Xinhua) -- Egypt is actively seeking stronger trade and investment ties with China and believes China can become Egypt's number one trading partner, over the next 10 years, overtaking traditional partners such as the United States, said Rachid Mohamed Rachid, Egypt's Minister of Trade and Industry.

    "We want to be China's gateway to Europe, Africa and the Middle East, through our basket of preferential trade agreements with these markets", Rachid addressed the World Economic China Business Summit held here Sunday.

    Rachid's participation in the Forum came at the end of a week-long visit in China, during which he signed a joint economic cooperation protocol with the Chinese Trade Minister Bo Xilai that seeks to boost Egypt's trade with China to five billion U.S. dollars from its current level of two billion.

    China exports to Egypt a range of products including parts of data processing equipment, tobacco with stems, truck tires, AC generators, decoders and radio transmission equipment, while Egypt's exports to China include cotton, marble, plastics, petroleum products, linen, glass and cow hides.

    The main purpose of Rachid's visit is to pursue joint investment projects, worth more than two billion U.S. dollars, with his counterparts in the Chinese government and business leaders.

    Joint government to government projects agreed during the week included the establishment of a Chinese industrial zone in Egypt to accommodate joint Chinese-Egyptian investment in Egypt's textiles, footwear and pharmaceuticals industries. The zone will be established together with the CNCEC, China's largest state-owned construction company.

    "Egypt today has labor cost which is, if not equal, lower than China, the energy cost is definitely lower than China, and we have other infrastructure in place available," Rachid told Xinhua.

    "We have two other advantages when we talk about Europe. Goods produced in Egypt can go to the European market at the cost less than from China, and we have free trade agreement with Europe," said Rachid.

    A series of MOUs were also signed between the two governments that facilitate the transfer of Chinese technology and equipment into strategic export sectors in Egypt such as textiles and building materials.

    China currently ranks 29th largest investor in Egypt. In March 2006, Chinese-Egyptian joint ventures totaled 70.6 million U.S. dollars of inland investment.

    Talks are also underway for the establishment of an aluminum production facility with China's largest industrial consortium, CITIC, with an initial start-up investment of around 100 million U.S. dollars.

    Private sector projects include a contract to create the first Chinese-Egyptian manufacturing complex in Egypt, to attract investment into Egypt's spinning, weaving and garment industries.

    This year marks the 50th anniversary of the two countries' diplomatic relations. Enditem