The Research On Direct Investment Of Chinese Enterprises In The Construction Field In Algeria

With the continuous growing of national power and the slowdown of the economic growth,China urgently need to find a new way out for the excess production capacity.Especially in the construction industry,domestic production capacity of materials such as steel,cement,electro-mechanical materials,ect.,is in serious state of excess.While in Algeria,the shortage of these materials is serious,which leads to considerable importation from overseas.In 2014,China's annual OFDI(outward foreign direct investment)reached 123.1 billion dollars,making China for 3 years in a row ranked the world's 3rd largest investors,increasing by 14.2% over the previous year.Chinese OFDI flows to Africa grew to 3.2 billion dollars in 2014.Algeria is ranked the largest recipient with a total investment amount of 666 million dollars which represents 20.79% of the total Chinese OFDI in Africa.Chinese direct investment in Algeria has increased sharply,Chinese entreprises have noticed the considerable investment prospects in this country.The existing documents about Chinese entreprises' direct investment in Algeria focus on the theoretical analysis about the investment environment and policy effect,aswell as the analysis of the whole industry,while the research integrating a certain industry,such as detailed cases of DI in construction market,is rare.I had worked for 5 years in the Algerian subsidiary of China's largest construction entreprise.Based on this experience,I chose ? direct investment orientation in Algerian construction market ? as the subject of my dissertation.The objectif is to provide useful information for the Chinese entreprises and individuals who intend for investing directly in the Algerian construction market,to help them have basic knowledge of this market in order to make adequate preparations and to adapt in better and quicker way to unfamiliar countries and unfamiliar business environment.This thesis includes five parts.The first part introduces the background and the meaning of the research,as well as l the literature review.The second part analyzes the current situation of the direct investment of Chinese enterprises in the construction field in Algeria.The third part introduces the risks and challenges we are facing.The next part describes the advantages and potential of Chinese enterprises.The last part discusses the development ideas of the direct investment of Chinese enterprises in the construction field in Algeria.