CAIRO: The first country in North Africa to establish diplomatic ties and cooperative relations with China is today also the state with the deepest ties in the region to the republic.
Egypt, although not as rich in natural resources as its neighbors, has developed a relationship with China based more on technological exchange, development of economic zones and infrastructure construction.
Economic ties with China across the entire content of Africa have increased dramatically since President Hu Jintao’s introduction in 2006 of the $5 billion China-Africa Development Fund.
Promoting Chinese investment in Africa and “mutually beneficial cooperation between China and Africa,” much of the investment in both sub-Saharan Africa and the Maghreb has focused on retaining resources such as metals and oil for a burgeoning Chinese economy.
“China has become a factor in the region, especially in Algeria where they have been involved in the construction of the main East-West highway and other types of infrastructure projects,” Lazar Beullac, editor of the Maghreb Confidential Newsletter, told The Media Line.
“In terms of business they have been very active… I’m not sure they have an agenda, they just see it as a place to invest and make money.”
Recently, Chinese officials have also pledged to strengthen military ties with Egypt.
“The Chinese side is willing to make joint efforts with the Egyptian side to consolidate the traditional friendship and push forward the in-depth cooperation between the two militaries,” Deputy-Chief of the Chinese People’s Liberation Army Ma Xiaotian was quoted as saying on a recent visit to Egypt.
Beullac explained that European investment continues to dominate in the region: “Today the main players are still France, Spain, Italy and the United States.” Nonetheless, economic ties between China and North Africa are dramatically increasing, especially in the case of Algeria.
According to World Bank data, trade between China and Algeria was around $4.5 billion in 2008, up from around $230 million in 2000. Recently, The China National Overseas Oil Company won a license to work in the Hassi Bir Rekaiz area, part of the gas rich Berkine Basin in eastern Algeria.
Two major Chinese oil firms, The China National Petroleum Company and Sincopec, also won exploration licenses in 2003 and 2004. This may have paved the way for Algerian Minister for Energy and Mines Chakib Khelil to consider expanding exports of liquefied natural gas to Asia, citing China as a potential market.
But Edward Bell, deputy-editor of the Middle East and North Africa desk at the Economist Intelligence Unit, is skeptical about Algeria and China striking a deal anytime soon. “Given the current [corruption] investigations at Sonatrach, Algerias state-owned energy firm, and the work being done to get the liquefied natural gas facilities to operate at capacity, this is more likely a long-term goal,” said Bell.
Overall, however, Bell agreed the bond between the two nations is budding. “Chinese construction companies have been particularly active in Algeria,” he said. “China will also build as a gift a $40 million opera house in Algiers as a sign of a growing relationship between the two countries.”
The relationship, however, has not been without friction. “There has been some resentment towards Chinese workers as unemployment, particularly among the under 30 [population] in Algeria, is very high,” Bell said. “Chinese companies have imported their own equipment and laborers, adding some fuel to tensions between the Chinese community and Algerians,” he added.
These economic difficulties were principle motivations for the violence that broke out between Algerian and Chinese youth in a suburb of the capital Algiers in the summer of 2009. That same summer, Al-Qaeda in the Islamic Maghreb also threatened to attack Chinese nationals in North Africa to avenge the killing of Uyghur Muslims in Northeast China.
Meanwhile, in other North African countries, like Morocco for instance, ties with China are still only beginning. “China is increasing exports, but still remains below the levels of Morocco’s traditional trading partners like France and Spain,” Bell said.
“A particular interest could be Morocco’s vast phosphate reserves, necessary for fertilizer production. However, ties still seem to be at an early stage.”
