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China Of A Bloody Terrorism

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5.1 Chinese Investments in the Construction Market In the aftermath of a bloody terrorism period that the country had to go through in the 90’s until the early 2000s, Algeria embarked on a reconstruction program to revive its old and outdated infrastructure, offering the traditional trade partner the opportunity to become an increasingly important investor in the country. Today Algeria has become one of the biggest markets for China 's overseas construction contractors, as hundreds of Chinese companies are undertaking in the country various construction projects. Starting out with low-cost housing projects, Chinese companies quickly moved to secure multi million and billion construction contracts such as The new airport in Algiers, the …show more content…

In Algeria a partnership with a local company is required by law (see LEGAL ENVIRONMENT FOR FOREIGN INVESTMENT AND PARTNERSHIPS section 4.2) Also the competition from companies coming from emerging markets such as China represent a strong competition thanks to their very low prices. In addition to that, many bids are based oh the lower price rule, meaning that the project is offered to the contractor offering the lowest price. At this strategy, Chinese contractors are very good, and seem to be advantaged by the Algerian bidders. • Chinese SOE’s, Main Players on the Construction Market In China the SASAC (the State Owned Assets Supervision and Administration Commission, established under the direct supervision of the central government is in charge of the remaining SEOs, appointing top executives and approving any mergers or sales of stock or assets and drafting laws related to state-owned enterprises. Through their website, it has been established a list of 18 companies operating in Algeria. The construction companies have been highlighted for a better view of the proportion of construction companies compared to the overall main SOEs investing in the country. In 2013, 14 of the listed eighteen central enterprises were among the 500 largest companies in the world (published on the 7th of July 2014 by Fortune Magazine). Table 5.1

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