The Problem Of Competition Of Chinese Enterprises In Algeria Project Contracting Market

In recent years, with the "Going Abroad" strategy carrying out, China’s international engineering contracting business is developing rapidly and has made unprecedented achievements. Among the Top 250 International contractors selected by "Engineering News Record"(ENR), there are 55 Chinese mainland companies, with the number going to a new high. But compared with the international biggest contractors, Chinese companies’ market share is tiny, far lower than the average of Top 250 overseas volume of business.Now Africa is China’s second largest overseas project contracting market, while Algeria among the five countries in North Africa, our traditional market of international engineering contracting, is currently China’s largest overseas project contracting market. Since 21 st century, its social situation stabilizing gradually, the infrastructure construction is imminent, and the potential market is very huge. We can see there are a large number of Chinese construction enterprises who are joining in the construction of Algeria. Faced with the European competitors of the same industry, why Chinese companies have gain a foothold and done well and what’s the problem?Therefore this article uses the research methods of empirical analysis and comparative analysis in combining with my own practical work in Algeria, and cites Michael Porter’s diamond Model to explore Chinese Contractors’ advantages and problems on the Algeria market. Finally this article will put forward advices and measures form the view of government and enterprises, hoping that would benefit Chinese construction contracting business in Africa, as also China’s useful experience of "going Abroad".