Morocco emerges as China’s backdoor to Europe amid Trump-era trade tensions

Morocco emerges as China’s backdoor to Europe amid Trump-era trade tensions

When Xi Jinping made a quiet stopover in Casablanca after the G20 summit in Brazil last November, it was more than a diplomatic courtesy. Greeted with dates and milk, the traditional Moroccan welcome for honoured guests, China’s president was signalling Beijing’s growing interest in Morocco—not just as a friend, but as a critical link in its global manufacturing and export strategy.

Over the past two years, Chinese investment in Morocco’s energy, electric vehicle (EV), and battery sectors has surged, with over $10 billion flowing into the country. Dozens of Chinese firms, including battery giant Gotion High-tech, are establishing operations in Morocco, drawn by its geographic advantages, low-cost workforce, and free-trade agreement with the European Union.

Morocco, already Africa’s largest auto manufacturing hub, has now become the leading car exporter to the EU—outpacing even China, Japan, and India. Its success underscores a larger trend: as tariffs mount and geopolitical rivalries deepen, countries like Morocco are becoming strategic “connector economies” that allow global companies to navigate the growing maze of trade barriers, the New York Times reported.

A backdoor to Europe for Chinese EVs

Morocco’s value lies in its location and trade access. With ports like Tangier-Med just a short sea journey from Spain, and a longstanding free-trade deal with the EU, the country is increasingly seen as a launchpad for Chinese carmakers looking to export into Europe without facing stiff EU tariffs of up to 45% on Chinese EVs.

This strategy mirrors what Mexico has done for firms hoping to avoid U.S. import duties. Morocco’s ambitions are reinforced by its established auto ecosystem, strong logistics, and growing renewable energy base—including solar power plants and phosphate reserves critical for battery manufacturing.

In October, Chinese tire maker Sentury launched production at a new factory in Tangier Tech City. Gotion announced a $1.3 billion gigafactory—the first in Africa—which could grow to a $6.5 billion investment. A Chinese battery parts supplier began production in January at a $2 billion joint venture near the Jorf Lasfar port.

Trump’s return complicates Morocco’s tightrope walk

While Morocco is deepening its economic relationship with China, it remains sensitive to the political risks of appearing too close to Beijing—especially with Donald Trump back in office. The US president has already imposed blanket tariffs and is targeting Chinese goods with duties as high as 145%. He could yet pressure connector countries like Morocco to take sides.

Unlike nations such as Mexico or Thailand, Morocco hasn’t faced the full brunt of Trump’s tariff strategy so far. But its growing role in facilitating Chinese exports could draw scrutiny. The country also relies heavily on its strategic ties with the US, including military cooperation and intelligence sharing. Morocco is keen to purchase American F-35 fighter jets and wouldn’t want to jeopardize these relationships.

Western Sahara is another point of leverage. Trump recognised Moroccan sovereignty over the disputed region in 2020, and the kingdom would likely avoid any moves—such as overly enthusiastic ties with China—that could prompt Washington to reverse its position.

A delicate diplomatic and economic balance

China’s Belt and Road Initiative has played a significant role in Morocco’s development, funding major infrastructure projects including solar farms, high-speed rail lines, and a $10 billion tech hub in Tangier. Still, Morocco has followed what experts call a “hedging strategy”—engaging China economically while keeping its geopolitical loyalties close to the West.

“The Biden administration showed them some tolerance,” said Ahmed Aboudouh of Chatham House. “But if this manoeuvring space is tightened under the Trump administration, I think they will show more caution.”

Morocco’s strategy has paid off so far—leveraging its geography and trade access to attract global capital. But as the US-China rivalry intensifies, the kingdom may be forced to make tougher choices about how far it can stretch between two economic superpowers.