Is Morocco becoming China’s secret weapon to circumvent Western taxes?

In a context of heightened trade tensions between Beijing, Brussels and Washington, the Kingdom is leveraging its strategic positioning to become the pivot of Asian "nearshoring". Out of the 183 automotive projects identified in the Middle East and North Africa region over the past two years, a quarter involve Chinese capital, half of which has landed on Moroccan soil. This attractiveness is based on a mature ecosystem, a skilled workforce and, above all, a free trade agreement with the European Union, allowing industrialists to preserve their competitiveness in the face of tougher tariffs on electric vehicles.

The country is particularly consolidating its position in the strategic battery value chain thanks to its vast phosphate reserves, an essential component of LFP (lithium-iron-phosphate) technology. This critical resource has favored the establishment of giants such as Gotion High-Tech, which has invested $1.3 billion in a "Gigafactory", and CNGR Advanced Materials. These investments aim to secure the supply for Western manufacturers while serving as a rear base for the export of cost-controlled vehicles to Europe.

The industrial dynamic is now extending beyond electronic components, as evidenced by the recent launch of a mega-project in the Oriental region. The Chinese group Shandong Yongsheng, through its subsidiary Goldensun Tire Morocco, has started the construction of a tire manufacturing complex in the province of Driouch for an amount of 6.7 billion dirhams. This site, presented as the largest of its kind in Africa, illustrates Beijing’s desire to diversify its anchors in Morocco to cover the entire automotive production chain.

This Moroccan offensive is part of a regional trend where the MENA region is becoming a priority outlet for the Chinese industry, whose exports have soared by more than 60% per year since 2020. But while the Gulf countries remain major consumer markets, Morocco stands out for its role as a manufacturing hub. Faced with prohibitive 100% taxes in the United States and European surcharges, nearshoring to the south of the Mediterranean appears to be the most pragmatic logistical response for Chinese manufacturers such as BYD or MG.