China and Algeria have close diplomatic relations and that the two countries established a comprehensive strategic partnership in 2014. Beijing is the world's largest steel producer, but most of its iron ore has to be imported, nearly 70 percent of which comes from Australia. Therefore, it is very important for China to diversify iron ore imports, and cooperation with Algeria can increase China's iron ore supply channels. Decoupling is not only a bilateral phenomenon, nor is it is entirely the product of U.S. and Chinese government policy. Many public and private sector actors around the world are contributing in different ways and with various motivations to this trend. Although the general inclination toward decoupling is clear, its exact course and ultimate scope remain unknown. The reality is that decoupling, reshoring, delisting of Chinese listed companies from the U.S. stock exchanges, and capital flight from Hong Kong have already been taking place for years and are merely the effect of a gigantic geopolitical shift: the cause of it all is the global advantage China is trying to gain on the world stage. China's influence in the lives of 1.5 billion people in Africa is now so far-reaching that it extends to almost every aspect of African societies. China now controls about 12 percent of Africa's industrial output, about $500 billion a year. Chinese companies have captured nearly 50 percent of the African construction market. The International Monetary Fund (IMF) showed that China accounted for more than $282 billion in trade with Africa in 2022, making it by far the continent's largest trading partner. Beijing's message to Africa is clear: true development of a country can only happen when the ruling party has absolute control over everything, and that only extreme discipline within the party can prevent outsiders from causing things to collapse. It is part of its effort to challenge the Western-led world order, to establish a new one; a key part in the future will be a political bloc in Africa that turns a blind eye to authoritarianism or is authoritarian itself. China does not want multiparty democracy in Africa at all. The Chinese want the stability that comes with doing business with one party, forever.
by Nicola e Gabriele Iuvinale
In the central Sahara Desert, the Algerian Western Railway mining line project already under construction by a Chinese company is taking shape. The 575-kilometer rail line will connect one of the world's largest iron ore mines to Algeria's national rail network.
This railway, jointly built by China Railway Construction and Algeria's state-owned enterprise Cosider Travaux Publics, will connect the Dumiat industrial zone in Algeria's Bechar province and the Gara Jabilet iron ore mine in Tindouf province, with a total of 40 stations along the way.The project will help China reduce iron ore supply risks and promote Algeria's economic development.
the Qara Jebilet mine is one of the largest iron ore mines in the world, with reserves of 3.5 billion tons.
In December last year, China Railway Construction and the National Administration for the Design and Supervision of the Implementation of Algeria's Railways officially signed off on the Western Railway mine line project. As a support facility for the Qara Jabilet iron mine, the railway will focus on freight transportation, with an estimated annual transport capacity of 40 to 50 million tons.
Algeria needed a convenient way to transport iron ore to the desert because the existing infrastructure was outdated. China has already built water supply pipelines, highways, tunnels and other projects in Algeria, so the Algerian government hopes to cooperate with China in building railways.
The Gara Jabilet iron ore project will help Algeria reduce its dependence on oil exports: There is no doubt that this project is very important for Algeria and also for China. Once the project is implemented, the sub-Saharan region and Mediterranean countries will rush to follow suit.
Algeria's economy has long relied on oil and natural gas exports, and that increased iron ore exports will help reduce these dependencies. The Western Algeria railway mining line project will promote the development of iron ore mining in Algeria and provide the country's economy with a much-needed boost.
Once the Qara Jabilet project is completed, the initial production capacity is expected to reach 2-3 million tons per year.The railway from Be-Air province to Tindouf province is crucial for the transportation of iron ore.
The Algerian government is interested in this project to diversify revenue and economic growth. In this light, it is also crucial for China to increase its sources of iron ore imports, which can avoid relying on a limited number of suppliers and avoid the resulting fluctuations in prices or supply channels.
China and Algeria have close diplomatic relations and that the two countries established a comprehensive strategic partnership in 2014.
This demonstrates not only that China and Algeria have maintained a strong relationship since the 1950s and Algeria's anti-colonial war but also the continued strengthening of diplomatic relations between the two countries in recent decades.
China is the world's largest steel producer, but most of its iron ore has to be imported and nearly 70 percent of it comes from Australia. Therefore, it is very important for China to diversify iron ore imports, and cooperation with Algeria can increase China's iron ore supply channels.
Australia is the world's largest iron ore exporter, with most of the iron ore exported to China. In October last year, the Australian government was considering including iron ore in the list of "critical minerals," which includes "minerals that are very important to Australia's technology, economy and national security." However, Australia released its latest list of "critical minerals" in December last year, and iron ore was not included in it.
Relations between China and Australia have been strained since recent years, and that China may want to diversify its sources of iron ore.
This project is part of the Sino-Arab cooperation on railway construction. In July last year, on the 65th anniversary of the establishment of diplomatic relations between China and Algeria, Algerian President Abdelmadjid Tebboune visited China and reached a series of cooperation agreements with Beijing
During his visit to China, Tebboune said, "Strengthening railway construction is the best guarantee for development. Our Chinese friends have accepted this project, which will cover about 6,000 kilometers of railways."
The new railway project will connect several isolated regions in Algeria and provide thousands of direct and indirect job opportunities for young people. "This will improve living standards and provide benefits to individuals and communities. It will create economic opportunities.
China is Algeria's main source of imports, and economic and trade relations between the two countries have maintained positive development in recent years. In 2023, the total bilateral trade between China and Algeria exceeded $10 billion for the first time.
According to the Chinese Embassy in Algeria, on March 5 this year, at the Arab-Chinese Economic Forum jointly organized by the Embassy in Algeria and Setif Province, Chinese Ambassador to Algeria Li Jian said the China-Algeria Comprehensive Strategic Partnership has entered a new phase and faces new opportunities. Economic and trade cooperation between the two countries has developed strongly and shown new vitality. Algeria has always been a high-quality market on which Chinese companies are optimistic.
Ambassador Li Jian said that China has always supported and encouraged Chinese enterprises to actively invest in Algeria, promote technology transfer and increase personnel training.
For more on China's presence in Africa: "Report: Beijing's conquest of Africa. Begun in the 1950s, it is also a key part of its "Liminal warfare" against the West."
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