But the state is trying to wean itself off production in a pivot toward less polluting, higher value-added industries, analysts said. The government cut subsidies for the industry in 2015, according to Fitch’s China Agribusiness Report. The Algeria deal “is exactly in line with China’s shifting strategy on trade,” said Even Pay, a senior agriculture analyst with Beijing-based advisory firm China Policy. “China has been a long-term, major producer and user of phosphate fertilizers. But China’s reserves are limited, and the environmental impact of the industry is high,” she said. “China will be happy to have more of these fertilizers on the global market. It China wants to move up the global value chain, that is, providing the capital, technology and expertise to produce phosphate fertilizer elsewhere,” she added.