Morocco Has China Finance Its Industrial Boom Without Letting Go of the United States

This Moroccan strategy is highlighted by the Spanish daily El Economista, which describes a country that has managed to attract Chinese industrial companies without calling its historic alliance with Washington into question.

China has become one of the main drivers of Morocco’s new industry. In Kénitra, Gotion High-Tech, in which Volkswagen holds approximately 25%, is building an electric battery plant representing an initial investment of 1.3 billion dollars. Its first phase is expected to reach an annual capacity of 10 GWh.

The project is intended to enable Morocco to produce lithium-iron-phosphate battery cells and packs locally. The African Development Bank has already approved 110 million dollars in financing to support this future gigafactory.

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Around Tangier, Kénitra and Jorf Lasfar, other Chinese groups are investing in cathodes, anodes, tires and automotive equipment. Between 2023 and 2025, Morocco thus captured nearly half of the Chinese automotive projects recorded in the MENA region.

Washington sells, Beijing builds

At the same time, Morocco has not distanced itself from the United States. The free-trade agreement that entered into force in 2006, military cooperation and diplomatic relations enable Washington to retain a privileged position in the kingdom.

This close relationship greatly benefits American companies. In 2025, the United States exported 5.53 billion dollars’ worth of goods to Morocco, compared with 1.86 billion dollars in purchases. Their trade surplus thus reached 3.67 billion dollars.

The trend strengthened further during the first seven months of 2026: American sales to Morocco exceeded 4 billion dollars, generating a surplus of 2.83 billion. Washington therefore derives a direct commercial advantage from Morocco’s growth, even though the most spectacular industrial investments today come from China.

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For Beijing, Morocco offers a production base close to Europe, connected to major markets through Tanger Med and equipped with an already structured automotive sector. The kingdom also has phosphates, which are essential for LFP batteries, as well as trade agreements with the European Union and the United States.

Rabat is therefore not choosing between the two powers. China provides the factories, technologies and capital necessary for its industrial expansion. The United States retains its markets, contracts and strategic influence. Morocco, for its part, is using this competition to strengthen its productive apparatus without locking itself into a single camp.