Algeria withdraws port deal with China to favor France

Algeria has canceled a major port construction deal with China and is now turning to France to modernize its maritime infrastructure, according to media reports in France and the Middle East.

The Hamdania deep-water port project—intended to be Algeria’s largest and the continent’s second-largest—was originally launched in 2015 with Chinese backing. However, Algerian President Abdelmadjid Tebboune has now shelved the plan, citing excessive costs accumulated under former President Abdelaziz Bouteflika’s administration.

Instead, Algeria will focus on upgrading its existing port facilities to handle larger vessels, French newspaper l’Opinion reports.

Algeria is expected to partner with French shipping giant CMA CGM to lead the modernization. The company’s CEO, Rodolphe Saadé, recently visited Algiers and held talks with President Tebboune.

Although officials cite economic concerns as the reason for scrapping the Chinese deal, analysts suggest the decision also reflects Algeria’s desire to strengthen economic ties with France, despite lingering political tensions between the two countries.

Some observers believe the shift could be either a diplomatic overture to France or the result of Saadé’s influence.

Saadé, who also owns Altice Media—one of France’s most powerful media groups—is seen as a key intermediary between President Tebboune and French President Emmanuel Macron.