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Chinese Investments and Employment Creation in Algeria and Egypt

North African industry has experienced the fallout associated with Chinese competitiveness in manufacturing within their domestic market.
China’s presence in North African economies (Algeria, Egypt, Libya, Morocco and Tunisia) is expanding rapidly as both an important trading partner and increasingly as an investor into the region. Chinese involvement can be readily seen in sectors like energy, infrastructure development and retail trade across the region. Less recognised is the growing position of Chinese firms in the manufacturing sectors of selected North African countries.

At the same time, like other lower to middle income developing countries, North African industry has experienced the fallout associated with Chinese competitiveness in manufacturing within their domestic market and in third country markets. This has naturally contributed to the underlying structural problems of unemployment facing countries in the region and raised fears in some quarters that greater Chinese involvement would ultimately harm the development aspirations of North Africa.