Chinese Firms Eye Morocco as Manufacturing Hub Amid US Trade Tensions

Chinese companies are seeking to avoid trade tensions. After the announcement by Donald Trump regarding the closure of the "loopholes" allowing Chinese products to penetrate the US market through Mexico, many of them, mainly those exporting to the United States via Mexico, plan to move part of their production to Morocco. This is the case of a supplier of parts for American household appliance manufacturers based in Guangdong. He has indicated that he is "seriously considering Morocco as an alternative production site". "Morocco could become a key link for many companies seeking to reduce their exposure to fluctuations in trade relations between the United States and China," estimates an economic analyst based in Casablanca with Barlamane.com.

A rush of Chinese companies to Morocco will be beneficial for the kingdom, but also for the Chinese companies. Moreover, a Moroccan company, already active in the manufacture of automotive parts destined for the United States, has confirmed that it is exploring the possibility of expanding its production to meet growing demand due to the international situation. Moroccan officials are already rubbing their hands. They "highlight competitive production costs and preferential trade agreements with the United States, and see this development in a positive light". As a bridge between Africa and Europe, Morocco has many assets (its modern infrastructure and its tax incentives) to become a strategic platform in the world of international business.