Billions in Chinese investment are turning Morocco into a supply hub for its auto industry, and the EU fears it is opening a “back door” into Europe.
In the hills outside Tangier, where until a few years ago there were agricultural lands, one of China's most ambitious industrial plans abroad is taking shape, notes the Greek press, citing the FT.
Tanger Tech City, a huge industrial zone dedicated mainly to the automotive industry and batteries for electric vehicles, is becoming a central pillar of China's strategy for the European market.
China's new factory near Europe
At the heart of the project is the Mohammed VI Tanger Tech City, a 500-hectare area near the grand port of Tangier, where Chinese companies are setting up manufacturing plants for electric vehicle components, from brake systems to battery materials.
For Beijing, Morocco offers a unique combination of advantages: lower production costs, geographic proximity to Europe, trade agreements with the EU and the US, and a network of free zones that attract foreign investment.
The result is a wave of investment that is turning the country into a critical link in the electric vehicle supply chain.
Fear of Brussels
The European Commission is concerned that the rapidly growing Chinese industrial presence in Morocco could be a way to circumvent EU tariffs on Chinese products.
EU Trade Commissioner Maros Sefcovic called the phenomenon “a major problem for the European economy”, arguing that it is part of China's effort to channel its surplus industrial production to Europe via third countries.
Concern has intensified after tariffs of up to 45% were imposed on Chinese electric vehicles, as European officials fear some production will be moved outside China to achieve an “identity” of different origin.
Electric cars, batteries and billions of dollars
Chinese investment in Morocco is not limited to Tangier. Sentury Tire already operates a factory in the region, while BTR New Material Group, the world's largest supplier of battery anode materials, is building a new manufacturing facility. Meanwhile, Gotion High-Tech is investing $1.3 billion to create a gigafactory in Kenitra.
Moroccan authorities aspire to create a complete value chain for the production of up to 500,000 electric vehicles per year by the end of 2026.
Why the Chinese choose Morocco
The answer lies in a mix of geography, politics and economics: Morocco offers a five-year tax break to businesses, has a young workforce, invests in “green” energy and, most importantly, has trade agreements with around 50 countries, providing access to a market of 2.5 billion consumers.
Analysts point out that so-called “nearshoring” – moving production close to markets – is now a key strategy for many Chinese companies looking to reduce trade and geopolitical risks.
A new geoeconomic battle
For Morocco, these investments translate into jobs, know-how and industrial development. The country's authorities reject accusations that they act as China's “back door” to Europe, arguing that the investments create real productive activity and mutual benefits.
For Europe, however, the problem is deeper. The Chinese presence is not just limited to component or battery factories. It's about controlling the entire electric vehicle value chain, from raw materials to final production.
As analysts point out, China has the potential to dominate every step of the production process, even tapping into Morocco's vast phosphate reserves, which are essential for next-generation batteries.
The real stake
Behind Tangier's new industrial zones, a much larger confrontation is taking place: the battle for who will control the industrial base of the green transition.
Europe is trying to protect its own production and limit its dependence on China. China, on the other hand, is looking for new routes to international markets.
And Morocco seems to become the most crucial meeting point of these two strategies.
