Research On Trade Risk And Coping Strategies Of Chinese Enterprises Under Algeria's Project Contracting

In China,the international project contracting has contributed to the increasing foreign investment,import and export trade,foreign aid and labor export,which gives a practical way to engage its "go global" strategy.Many Chinese enterprises have entered the engineering contracting market in Algeria(hereinafter referred to as the “Algeria”)for more than 30 years.During these 30 years,they have experienced a initial and persistent,then rapid development and have taken a huge leap forward along with Algeria,who has also made great progress in its political economy.However,in 2014,the drop of oil prices in world has affected evidently its economy,which in turn brings a great challenge to China's project contracting strategy.Facing the economic depression in Algeria and the increasingly competitive construction market,the Chinese companies adjust actively their business strategy and exert their initiative not only in introducing advanced technologies,reducing management costs and refining the administration,but also in improving their traditional business,enhancing the competitiveness of core business and extending to relevant fields so that they can break through and then seek a diversified development.The international project contracting is not a simple construction design,but a complex and intertwined collection of multiple links and multiple fields.Taking EPC,a common model in this field as an example,it includes design,procurement,construction,and trial operation.Each of these steps brings difficulties in management,while every step is a key to increase the efficiency,and to reduce the costs.Considering the specific environment in Algeria caused by the great pressure of market and economic depression,the author hopes to analyze the international trade,a very important part which is derived from the material procurement in project contracting construction.The trade under the international project contracting has the general risks of ordinary international trade and the special problems of project contracting.More specifically,the engineering contracting strategy and management level of the Chinese enterprises are internal factors,while the policy in Algeria is the external cause,which determines jointly the trade risk in the project and based on which suggestions and countermeasures are made in the end.