The Egyptian government has taken important steps in the last 30 years to reform the highly centralized economy it inherited from President Nasser and moved towards a market economy. The reforms have boosted the annual economic growth which averaged 5% annually, but the government did not succeed to solve the increased problem of unemployment among youth under 30 years old. During the mid-2000s, the growth in gross domestic product (GDP) in Egypt averaged about 7 % every year. The Central Bank of Egypt (CBE) explained that the country had accumulated foreign currency reserves equivalent to $35bn (sufficient to cover 8.6 months’ worth of imports) in 2010, and in the same year GDP per capita was $2,600, an increase of almost 50 percent ($1,400) in 2006 1. According to country classification of the World Bank, Egypt has been pushed from the low income category to lower middle income category. From 2013, the average salary per week in Egypt reached LE 641 (approx. $92), which increased by 20% more than the previous year 1. In spite of that, about forty percent of the Egyptians live below poverty line with a day income $2 2. Egypt’s GDP in 2015 stood at $996.6 billion when based on purchasing power parity compared to $19,522 billion of China in the same year Although china begins its reform nearly at the same time with Egypt, china achieved impressive progress and became the world’s fastest-growing developing country, with average growth rates of 10%. This attributes to many factors. The most important factor is the long term planning strategy-the Five Year Plans. Additionally, leadership and citizens’ satisfaction with their government are vital factors for productivity and stability of the country. When it comes to Egypt we will find revolutions, instability of the political situation, corruption and lack of wise leadership. All of these are contributory factors in retardation of economic growth. So in this paper we will show the differences between the economy and use of economic resources in the two countries. Political stability and economic growth outcome are deeply interrelated. Egypt economy has witnessed various stages of transformations because of the political situation. In 1957, the first program of industrialization was founded and led by the public sector. The program targeted heavy industries such as iron and steel, chemical industries, and heavy machinery. The role of the private sector was relatively low. The affairs of all banks and financial institutions were under the control of public sector. In addition, the foreign direct investment was almost banned. After that Egypt entered a period of War (1967–1973). This period adversely affected the performance of the economy and public sector role. Since 1974 until 1985 (Openness Euphoria), the government introduced new policies to encourage Arab and foreign investors. This is through a series of incentives and liberalizing trade and payment; heavy emphasis was put on developing the tourism and textile industry as drivers of growth. This led to economic expansion but it proved unsustainable and growth consequently returned back. During the external Debt Crisis, the external debt crisis and Paris Club rescheduling and debt reduction was occurred. The economic Reform period (1991–2007) was the time for activation of the role of private sector in all economic activities. In which reform policies were introduced to meet the terms of international institutions, lenders and donors, including wider incentives to the role of the. The Post Global Financial Crisis (2008-2011) followed the economic Reform period and had witnessed soaring of food prices, especially grains, led to calls for the government to solve the problem and provide an immediate assistance to more than 40% of the population lying in the poverty tunnel and to put new policy for agricultural reform. Additionally, Egypt faced a long term supply- and demand-side repercussions of the global financial crisis on the national economy. Post the 2011 revolution (2012–2016), the economy suffered from a severe downfall and the government challenged numerous obstacles to restore growth, market and the confidence of investors 3. Egypt’s foreign exchange reserves dropped from $36 billion in December 2010 to only $16.3 billion in January 2012 due to propping up the Egyptian pound against the dollar. Considerations about social unrest and the country’s ability to achieve its financial targets provoked rating agencies to decrease the country’s credit rating on several occasions 4. In 2016 Egypt floated its currency and depended on a homegrown economic reform program supported by a $12 billion IMF loan in a trial to restore economic stability and growth 5. On the contrary, China economic growth was maintained since the country has begun its reform. China believed that research and technology innovation are the pillars for its development 6.