Chinese companies are investing billions of dollars in Morocco’s fast-growing automotive industry, turning the country into a key manufacturing hub for vehicles, batteries, and auto parts destined for Europe.
As factories expand across Morocco, concerns are growing in Brussels that some Chinese manufacturers could use the country as a gateway into European markets, at a time when the European Union is tightening restrictions on imports from China.
The Financial Times reported that Chinese firms have announced roughly $6 billion in investments in Morocco since the COVID-19 pandemic, making the country one of Beijing’s most important industrial footholds near Europe.
The projects span from Tangier to Kenitra, helping to build an integrated automotive supply chain covering battery materials, tires, and vehicle components.
One of the largest investments comes from battery manufacturer Gotion High-Tech, which is building a $1.3 billion factory in Kenitra.
In Tangier, several Chinese companies are establishing operations in Mohammed VI Tanger Tech City, an industrial zone designed to attract foreign manufacturers.
Brake manufacturer APG is expected to open a $70 million plant there later this year, while tire producer Sentury Tire and battery materials company BTR New Material Group are also expanding their presence.
Morocco has spent years positioning itself as a manufacturing bridge between Europe, Africa, and the Americas.
The country offers tax incentives, a young workforce, and free trade agreements covering dozens of countries, including the European Union and the United States.
Moroccan officials reject suggestions that the country is being used to bypass European trade barriers, noting that exports to Europe must comply with rules requiring significant local production to qualify for preferential treatment.
Still, EU officials are monitoring developments closely.
The bloc has imposed tariffs of up to 45% on certain Chinese electric vehicles and is increasingly concerned about industrial overcapacity spilling into neighboring markets.
According to the Financial Times, European officials fear Morocco could become an attractive production base for Chinese companies seeking easier access to EU consumers.
The European Union remains Morocco’s largest trading partner, receiving more than €26 billion worth of exports from the country in 2025.
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