With America asleep at the wheel, China’s $10 billion investment in Moroccan factories portends a covert economic invasion. Communist China is establishing an industrial foothold in North Africa, endangering our economic security and undermining Western influence in a crucial region, while the Biden administration ignores American manufacturing.
China’s Backdoor Entry to European Markets
The Chinese Communist Party has found a clever workaround to dodge European Union tariffs by establishing manufacturing bases in Morocco. This strategic maneuver allows Chinese companies to exploit Morocco’s free-trade agreement with the EU, effectively circumventing trade protections designed to shield American and European industries from unfair competition.
As Europe rethinks its industrial dependencies and the global economy tilts toward new centres of production, Morocco is carving out a strategic role on the world stage. No longer just a gateway to Africa, the North African kingdom is becoming a key player in automotive… pic.twitter.com/bSpfeGAGNi
— Vizier (@vizierreport) May 7, 2025
Chinese battery manufacturer Gotion High-tech is among the companies pouring billions into Morocco’s manufacturing sector, particularly in the automotive and energy industries. This investment surge followed President Xi Jinping’s calculated visit to Morocco after the G20 summit in Brazil, which laid the groundwork for this economic infiltration while Western leaders focused elsewhere.
Morocco’s Strategic Pivot Raises National Security Concerns
King Mohammed VI has pursued an ambitious modernization agenda since 1999, transforming Morocco from a low-income nation to a middle-income economy with strong manufacturing capabilities. This transformation has positioned Morocco as the leading car exporter to the European Union in 2023, surpassing China, Japan, and India through partnerships with Western automakers like Renault and Stellantis.
Why China Is Investing So Much Money in Moroccan Factories
Morocco is the largest automotive manufacturing hub in Africa and an increasingly crucial conduit for Chinese companies looking to get around tariffs for exports headed to EU.@TheLastRefuge2 https://t.co/tMl0wZuVbG
— Ben Tallmadge (@BenTallmadge01) May 7, 2025
Through the Belt and Road Initiative, Chinese investments have significantly bolstered Morocco’s infrastructure development, creating dependencies that threaten American influence. Morocco has traditionally maintained a strategic partnership with the United States, engaging in military exercises and counterterrorism collaboration, but Beijing’s economic courtship threatens to undermine these critical security relationships.
America Must Counter China’s Economic Warfare
The Biden administration has failed to counter China’s aggressive economic expansion, allowing Beijing to establish manufacturing footholds in strategic locations around the globe. Chinese companies are leveraging Morocco’s automotive industry ecosystem and strategic location as a gateway to European markets while creating jobs that could have belonged to American workers.
“For Chinese automakers, Morocco could now play that same role for Europe,” notes Ahmed Aboudouh, highlighting how China exploits Morocco’s position to bypass European trade defenses.
Morocco’s hedging strategy between major powers reveals the weakness of American economic diplomacy under the current leadership. While China invests $10 billion in Moroccan manufacturing, creating a new industrial hub that threatens American jobs and influence, the administration continues pursuing policies that hamstring domestic manufacturing and energy production.
Morocco’s and Algeria’s geopolitical tensions over the Western Sahara conflict create additional security risks as China deepens its economic presence. America’s failure to maintain economic primacy in North Africa opens the door for increased Chinese military influence in a region critical to Mediterranean security and European energy supplies.
Sources:
https://www.nytimes.com/2025/05/07/business/china-tariffs-morocco.html