Forging a Path to Prosperity: President Tebboune’s Visit to China Strengthens Strategic Relations for a Brighter Future -Report

BY: Hana Saada

ALGIERS – The ongoing visit of the President of the Republic, Mr. Abdelmadjid Tebboune to China presents a unique opportunity to consolidate and strengthen strategic relations, fostering a partnership that benefits both countries. As Algeria harnesses the expertise and resources of China, it paves the way for a brighter and more prosperous future, marked by robust cooperation and shared achievements.

In a significant step towards deepening cooperation and fostering strong ties, the President of the Republic of Algeria, Mr. Abdelmadjid Tebboune, presided over the signing ceremony of 19 documents, including agreements and memoranda of understanding, alongside his Chinese counterpart, Mr. Xi Jinping. The event took place at the prestigious Great Hall of the People in Beijing following fruitful discussions between the two leaders.

Accompanying President Abdelmadjid Tebboune on this momentous visit is a high-level ministerial delegation. The team includes Mr. Ahmed Attaf, Minister of Foreign Affairs and the National Community Abroad; Mr. Laaziz Faid, Minister of Finance; Mr. Mohamed Arkab, Minister of Energy and Mines; Mr. Karim Bibi Triki, Minister of Posts and Telecommunications; Mr. Ali Aoun, Minister of Industry and Pharmaceutical Production; Mr. Tayeb Zitouni, Minister of Trade and Export Promotion; Mr. Tarek Belaribi, Minister of Housing, Urban Planning, and the City; Mr. Lakhdar Rekhroukh, Minister of Public Works and Basic Infrastructure; and Mr. Yacine El-Mahdi Oualid, Minister of Knowledge Economy, Start-ups, and Micro-enterprises.

 

The signing of 19 agreements and memoranda of understanding spanning various sectors underscores the commitment of both nations to foster collaboration and mutual development. These documents signify a significant milestone, paving the way for enhanced economic ties and robust partnerships. The sectors covered by the agreements include trade and investment, energy, infrastructure development, telecommunications, industry, housing, and knowledge economy.

The two presidents witnessed the signing of bilateral cooperation documents in the fields of agriculture, transportation, science and technology, telecommunications, sustainable urban development, trade, aerospace, inspection and quarantine, energy, education and sports.
🇨🇳🇩🇿 pic.twitter.com/FmhXy89YKa

— 小汤圆 RUAN Yaying نجيمة💫 (@YayingRUAN) July 18, 2023

President Abdelmadjid Tebboune Congratulates Chinese President Xi Jinping on Re-Election and Discusses Strengthening Bilateral Relations

President Abdelmadjid Tebboune of the Republic of Algeria extended his warm congratulations to Chinese President Xi Jinping on his re-election as the head of the Chinese Communist Party. The President emphasized the significance of the Chinese leader’s renewed mandate and expressed his optimism for further development in bilateral relations between Algeria and China.

President Tebboune said, "Your Excellency Xi Jinping, President of the People's Republic of China, I am delighted to be here in Beijing, a city that symbolizes struggle, construction and ambition, a city with a long civilization, full of challenges and loaded with successes. pic.twitter.com/ImVboOr1al

— 小汤圆 RUAN Yaying نجيمة💫 (@YayingRUAN) July 18, 2023

During the extended talks held between the two leaders, President Tebboune conveyed his gratitude to President Xi for China’ support in Algeria’s pursuit of membership in both the BRICS organization and the Shanghai Cooperation Organization. President Tebboune hailed these gestures as testaments to the deepening partnership and friendship between the two nations.

“This visit comes following the signing of historic agreements between our two countries to frame our historic relations,” stated President Tebboune, as reported by the television channel Al24 News. The President highlighted the importance of the signed agreements in shaping the future trajectory of Algeria-China relations, underscoring the commitment of both nations to foster enhanced cooperation in various sectors.

In response, President Xi Jinping expressed China’s unwavering dedication to strengthening the longstanding friendly ties between the two countries. Acknowledging the shared history and mutual interests, President Xi emphasized China’s readiness to deepen cooperation and explore new avenues of collaboration with Algeria.

In this vein, President Xi emphasized the significant milestone of the 65th anniversary of diplomatic relations between China and Algeria, acknowledging the historical context that initially brought the two nations together. Six and a half decades ago, their shared commitment to combatting imperialism and colonialism, as well as their aspirations for national independence and liberation, forged a strong bond between China and Algeria. Over the years, the two countries have stood by each other during challenging times, fostering mutual understanding and providing unwavering support. Their relationship has blossomed into one of genuine friendship and natural partnership, driven by the shared goal of common development and national rejuvenation. While China pursues its path to modernization and comprehensive national rejuvenation, Algeria is steadfastly constructing a “New Algeria” of its own. China remains dedicated to nurturing the enduring friendship with Algeria and together striving for even greater achievements in their comprehensive strategic partnership.

The discussions between the two leaders reaffirmed the commitment of Algeria and China to enhance their bilateral relations across multiple domains, including trade, investment, infrastructure development, and people-to-people exchanges. Both sides expressed their determination to further promote cultural and educational exchanges, as well as foster closer collaboration in areas of mutual benefit.

President Tebboune reiterated Algeria’s commitment to deepening cooperation with China, emphasizing the potential for joint endeavors in economic development and investment. The President’s visit to China and his productive talks with President Xi Jinping have laid a solid foundation for continued partnership and the realization of shared goals.

Chinese President Xi Jinping held talks with Algerian President Abdelmadjid Tebboune in Beijing on Tuesday. Noting that this year marks the 65th anniversary of the establishment of diplomatic ties between the two nations, Xi said China and Algeria are sincere friends and… pic.twitter.com/LgGDceIPEO

— Zhang Heqing (@zhang_heqing) July 18, 2023

On another level, the commitment to mutual support in the defense of fundamental interests was resoundingly reinforced by both parties. With a renewed determination, they pledged to intensify their consultations and coordination on matters of international and multilateral significance. The unyielding support for each other’s core interests stood as an unwavering testament to their enduring partnership.

Recognizing the paramount importance of sovereignty and territorial integrity, they vowed to stand shoulder to shoulder in safeguarding these crucial principles. Furthermore, they pledged joint endeavors to uphold the sacrosanct principle of non-interference in the internal affairs of states, firmly believing in the inherent sovereignty of nations. Through this profound declaration, the two sides solidified their unwavering commitment to a cooperative and principled approach on the global stage.

Noting that the talks held in Beijing between President Abdelmadjid Tebboune of the Republic and his Chinese counterpart, Mr. Xi Jinping, have resulted in a momentous joint declaration, as stated in a press release from the presidency. This declaration encapsulates the essence of the discussions that took place between the two leaders, encompassing bilateral, regional, and international issues of shared interest.

With a firm commitment to advancing the evolving relationship between the two nations and a strong determination to bolster it in the future, the statement emphasizes the decision of the presidents to intensify political consultation at all levels. Moreover, it highlights their resolve to foster cooperation across various domains, including politics, economics, culture, technology, security, and defense. This resolute effort aims to deepen the comprehensive strategic partnership that exists between Algeria and China.

The joint declaration further underlines the shared objective of enhancing trade volume between the two countries. Recognizing the importance of diversifying Algeria’s exports beyond hydrocarbons, the leaders have pledged to facilitate the development of non-hydrocarbon exports from Algeria to China. Additionally, they have expressed their commitment to augmenting the qualitative Chinese investments in Algeria, taking advantage of the various privileges granted by the law.

The joint declaration from the talks between President Tebboune and President Xi Jinping signifies a significant milestone in bilateral relations between Algeria and China. It underscores the mutual dedication to strengthening ties and expanding cooperation across multiple sectors. As both nations seek to seize new opportunities and foster growth, this declaration paves the way for a prosperous future of collaboration and friendship between Algeria and China.

 

China has long been an important ally for Algeria, and this visit marks another step forward in the deepening of this crucial partnership. The agreements and memoranda of understanding signed today will serve as a solid foundation for future collaboration, opening doors for increased trade, investment, and technological exchange between the two nations.

Algeria, with its rich resources and strategic geographical location, presents immense potential for economic growth and development. The partnership with China, a global economic powerhouse, will undoubtedly contribute to Algeria’s journey towards progress and prosperity.

As Algeria and China embark on this new chapter of cooperation, the world watches with anticipation. The signing of 19 agreements demonstrates the determination of both nations to forge stronger ties and leverage their strengths to overcome challenges and embrace opportunities. It is a testament to the leadership and vision of Presidents Abdelmadjid Tebboune and Xi Jinping, who have displayed great statesmanship and commitment to advancing their countries’ interests.

Algerian-Chinese Relations

Algeria and China have enjoyed a longstanding and robust bilateral relationship, which celebrated its 60th anniversary of diplomatic ties in 2018. The bond between the two nations has stood the test of time and continues to exhibit strong momentum for further growth and cooperation.

Historical Background

The relationship between China and Algeria dates back to the 1950s, when China actively supported Algeria’s liberation struggle against colonial rule. Despite facing challenges in its own development, China provided political, economic, and military assistance to Algeria. In September 1958, China became the first non-Arab country to recognize the Algerian interim government, establishing full diplomatic ties later that year. China’ support extended beyond recognition, with the provision of weapons and funding to the National Liberation Army. Moreover, China sent its first medical team to Algeria in April 1963, marking the beginning of extensive healthcare cooperation.

Key Milestones

Over the years, Algeria and China have deepened their cooperation through various agreements and joint initiatives. Between 1963 and 1975, approximately twenty agreements were signed, covering areas such as economic and technical cooperation, health, culture, communication, and science. In May 2003, China swiftly responded to an earthquake in Algeria by dispatching a rescue team to aid in the recovery efforts. Algeria has also played a crucial role in supporting China’s diplomatic position, including sponsoring a resolution that allowed China to regain its seat in the United Nations Security Council.

High-Level Exchanges

The relationship between the two countries has been characterized by frequent visits and close contact between top leaders. In February 2004, Chinese President Hu Jintao visited Algeria at the invitation of his Algerian counterpart, the late Abdelaziz Bouteflika. During this visit, the leaders discussed bilateral ties and regional and international issues and signed agreements to enhance cooperation. In November 2006, President Bouteflika reciprocated by paying a state visit to China and attending the Beijing Summit of the Forum on China-Africa Cooperation, further solidifying the strategic cooperative ties between the two nations.

Economic and Commercial Cooperation

Economic and trade cooperation between Algeria and China has witnessed substantial growth and diversification. Since the early 2000s, the volume of trade has increased significantly, reaching $9.1 billion in 2018. Algeria has emerged as China’s leading market in the Maghreb region, while China has become Algeria’s top supplier since 2013, surpassing France. During 2020, China had a large net trade with Algeria in the exports of Machines ($1.83B), Textiles ($924M), and Metals ($814M). During 2020, Algeria had a large net trade with China in the exports of Mineral Products ($869M), Textiles ($13.5M), and Metals ($3.57M).

In 2014, the Sino-Algerian bilateral relationship was elevated to a “Comprehensive Strategic Partnership,” the first of its kind in the Sino-Arab world. Chinese top political advisor, Yu Zhengsheng, stated the goals of this partnership were to “enhance exchanges at all levels, cement political mutual trust and promote pragmatic cooperation” between the two nations. In 2018, Chinese President Xi Jinping echoed similar rhetoric, pledging to help promote further development of the partnership and continue the trend towards closer diplomatic ties.

Chinese Enterprises in Algeria

Numerous large Chinese enterprises have expanded their business operations in Algeria across various sectors. These include road and housing construction, telecommunications, energy, water resources, and transportation. Chinese investment and involvement in these sectors have contributed to Algeria’s infrastructure development and economic growth.

The Sheraton Hotel, built by a Chinese company, is now a major landmark in the capital city, while the expressway under construction that will link Algeria’s east and west will also become a key strategic artery for the North African countries and the littoral states of the Mediterranean Sea.

In 2019, after seven years of construction and over $1 billion in expenses, China finalized the Great Mosque of Algiers. The Great Mosque of Algiers, or Djamaa El Djazair, sits on an area of 400,000 square meters and has a 265-meter (870-foot) minaret that houses observation decks. The compound’s domed sanctuary and outside courtyard overlooking the Bay of Algiers can house up to 120,000 worshippers, and it has an underground parking space with a capacity of 7,000 cars.

At the beginning of the COVID-19 pandemic, Algeria sent urgent medical aid to Beijing in February 2020. In March 2020, China started to deliver tons of medical equipment to Algeria, including respirators, medical protective clothes, and screening kits. It also materialized the first cooperation project in the field of vaccine production in Algeria. In February 2021, the Chinese government donated 200,000 doses of the SINOPHARM vaccine to Algeria, followed by nearly 3.2 million doses of the SINOVAC vaccine through “COVAX”. The Chinese company SINOVAC BIOTECH has signed a contract with Algeria for 15 million doses of vaccines, and the first dose of vaccine manufactured in Constantine has left the production lines. The RAYANOX medical oxygen production unit produced its first liter of oxygen in Oran in September 2021.

Forging a Strategic Partnership: Exploring the 3 Key Areas of Mutual Interest Between Algeria and China During the President’s Visit

The signing of the second five-year comprehensive strategic cooperation plan in November 2022, spanning from 2022 to 2026, is a crucial foundation for deepening contacts and cooperation in all areas, particularly Chinese investments in Algeria.

The Gara Djebilet project stands as a shining example of China’s expertise being utilized for Algeria’s benefit. Recognized as one of the largest iron mines globally, the Gara Djebilet mine in Tindouf holds immense strategic importance for Algeria’ steel industry.

This extensive project, scheduled to be carried out in multiple phases from 2022 to 2040, encompasses diverse sectors such as transportation, public works, energy, water resources, finance, the environment, and urban planning. To ensure the successful realization of this megaproject, Algeria has enlisted the support of Chinese companies with vast experience in relevant fields.

A memorandum of understanding was signed with a consortium of Chinese companies, including CWE, MCC, and Heyday Solar, primarily for the financing aspect of the project. This milestone marked the effective initiation of the Gara Djebilet mine project, leading to the establishment of a joint venture with the national iron and steel company (Feraal).

Minister of Energy Mohamed Arkab underscored the technical and technological prowess of the three Chinese companies chosen for this project. MCC brings substantial expertise in mine construction, mineral extraction, and development, while CWE boasts extensive experience in renewable energy project development, construction, and commissioning. Additionally, Heyday Solar is renowned for its advanced power grid solutions and major installations.

Furthermore, last June witnessed another significant partnership agreement between Feraal and the Chinese consortium CMH. This agreement aimed to establish two joint Algerian-Chinese companies: one for the operation of the Gara Djebilet mine in Tindouf and the other for the construction of a complex to transform iron ore from the Gara Djebilet mine into semi-finished materials (slabs) in the Bechar province.

Continuing the series of Chinese partnerships, a joint venture between Feraal and another Chinese group is slated for the end of 2023. Feraal’s CEO revealed plans for this joint venture to focus on the realization of an export project specifically catered to China.

Algeria and China Forge Strategic Partnership in Integrated Phosphate Development Project

Algeria and China have joined forces to launch a groundbreaking integrated phosphate development project, solidifying their strategic partnership. The venture, known as the Algerian Chinese Fertilizers Company (ACFC), brings together Algerian groups Asmidal and Manal with Chinese companies Wuhuan and Tian’an. This collaboration marks the third major economic initiative between the two nations, promising significant advancements in phosphate production and related sectors.

The ACFC, a newly established joint-stock company under Algerian law, has already commenced preliminary activities aimed at realizing the integrated phosphates project (PPI). This ambitious endeavor encompasses the development and exploitation of phosphate deposits in three wilayas located in the eastern part of Algeria. Bled El-Hadba and Djebel Onk in the wilaya of Tébessa will host the phosphate extraction operations, while the chemical transformation of phosphates will take place in Oued Kéberit in the wilaya of Souk Ahras. Additionally, the manufacturing of fertilizers will be centered in Hadjar Soud in the wilaya of Skikda, complemented by dedicated port facilities at the port of Annaba.

In May of this year, Sonatrach CEO Toufik Hakkar led a delegation comprising executives from Sonatrach, Asmidal, and the Manadjim ElDjazair group (Manal) on a working visit to China. During the visit, fruitful discussions were held with representatives of China National Chemical Engineering Co. Ltd (CNCEC), the parent company of Wuhuan, renowned for its expertise in the chemical and fertilizer industries. The primary agenda revolved around the development of the PPI and exploring possibilities for collaboration in research, development, and production of green ammonia, as well as waste recovery from fertilizer transformation.

Moreover, the visit served as a platform to discuss financing options for this significant undertaking. Meetings were scheduled with a group of banks keen on financing the project, as well as insurance, loan, investment, and export entities that expressed their readiness to contribute to this strategically vital initiative.

Parallel to discussions on the phosphate project, Hakkar also engaged in productive meetings with partner companies of Sonatrach, notably China National Petroleum Corporation (CNPC) and its subsidiaries HQC, KunLun Digital, Huawei, and PowerChina. These dialogues explored opportunities for joint investments and cooperation in the hydrocarbon sector, new and renewable energies, the digital transition, and advanced technologies employed in hydrocarbon exploration and production.

The integrated phosphate development project, a result of the Algerian-Chinese partnership, holds immense promise for both nations. Not only will it stimulate economic growth, but it will also foster knowledge exchange and technological advancements in the phosphate industry. By capitalizing on the expertise and resources of both countries, the ACFC aims to become a leading player in the global fertilizer market, ensuring the provision of high-quality products and contributing to global food security.

China’s Ambitions in the Automotive Industry: A Prominent Place for Chinese Manufacturers

In recent years, China has emerged as a dominant force in the global automotive industry, with ambitions to solidify its position further. The presence of Chinese manufacturers and brands has been steadily growing, and their influence is set to increase, especially in key markets such as Algeria. This rise in prominence was highlighted by the announcement made by the Ambassador of the Republic of China in Algeria, Li Jian, last March, where he revealed plans for Chinese companies to engage in co-production of cars with Algeria. This development comes as no surprise, considering the significant impact Chinese automotive brands have had on the Algerian market in the past.

Chinese automotive brands first entered the Algerian market in the early 2000s, with more than fifteen brands initially establishing a presence in automobile distribution. These brands covered a wide range of vehicles, including automobiles, utility vehicles, trucks of various tonnages, buses, motorcycles, and scooters.

The popularity of Chinese vehicles in Algeria can be attributed to their affordability, which appealed to a market with limited purchasing power and the absence of consumer credit options. Some Chinese brand dealers even offered supplier credit with 0% interest during a specific period, making the Chinese option even more attractive to consumers. However, while Chinese vehicles have maintained their presence, other brands have continued to circulate as well, indicating the diverse choices available in the Algerian market.

China’ success in the automotive industry is not limited to domestic consumption. The country became the world’s largest automobile market in 2009, with over 23 million vehicles sold domestically in 2022, surpassing the United States by a significant margin. China boasts more than 100 brands competing in this lucrative market. Furthermore, China has taken the lead in the electrification of car fleets, with an impressive 5.67 million electric and hybrid vehicles sold in 2022 alone. Chinese consumers are expected to contribute to one-third of global electric and hybrid car sales, with estimates ranging from 8 to 9 million units.

Strengthening Economic and Development Ties to Foster a Win-Win Partnership

The “Belt and Road” project, named after the historic trading trails connecting China to the Mediterranean and beyond, signifies a groundbreaking endeavor aimed at linking the Middle Kingdom, the powerhouse of the global economy, with Europe and Africa through a comprehensive network of maritime, road, and rail infrastructure. Unlike the military-driven realpolitik of the past, this planetary network focuses on economic and development cooperation, positioning China as the architect of a balanced global market.

As the gateway to the vast African market and a vital crossroads connecting the Middle East and Europe via the Mediterranean, Algeria emerges as an ideal partner for China in realizing its grand vision of integrated and equitable development. With its diverse advantages, including energy potential, geostrategic positioning, established logistics, and infrastructure, Algeria represents a crucial ally for China’s ambitions.

The win-win partnership between China and Algeria is already evident in several ongoing transformative projects within the country. China’s substantial direct investments are fueling major integrated phosphate projects in Tébessa, development of the Gara Djebilet mine, the establishment of the modern port of El-Hamdania, as well as various ventures in hydrocarbons, renewable energy, construction, industry, and telecommunications.

These significant investment projects serve Algeria’s goals of economic diversification and sustainable GDP growth. China’s contributions extend beyond financial support, as they actively transfer know-how and technologies, nurturing a tangible and pragmatic partnership between the two nations.

It is against this backdrop that President Tebboune’s visit to Beijing assumes paramount importance. This diplomatic journey has the potential to redefine China’s new silk roads, directing them towards Africa while ensuring Algeria’s path towards integration into the sphere of BRICS and emerging economies. The mutual benefits derived from this decisive turning point will reinforce the already palpable win-win partnership between the Asian dragon and Algeria.

As the leader of the BRICS and a proponent of a new multipolar world order, China recognizes Algeria’s indispensable role in realizing the ambitious vision of the new silk roads. Simultaneously, Algeria, with its strategic location and immense potential, views China as a major catalyst for direct investments, capable of propelling the country towards its objectives of economic diversification.

To conclude, Algerian-Chinese relations have remained strong and resilient over the years, characterized by mutual understanding, support, and cooperation. The historical ties forged during Algeria’s struggle for independence have paved the way for extensive collaboration across various sectors. Economic and commercial cooperation between the two nations has flourished, with China becoming Algeria’s leading supplier and significant investments from Chinese enterprises in key sectors. As both countries continue to strengthen their partnership, Algerian-Chinese relations are poised to achieve even greater heights, fostering mutual prosperity and development.