On November 29, 2024, Chinese President Xi Jinping made a significant visit to Morocco, following his earlier meeting with German Chancellor Olaf Scholz at the G20 summit in Brazil. This visit aims to strengthen bilateral ties, particularly in the context of China's growing electric vehicle (EV) industry and its strategy to circumvent Western trade barriers [6f29cb69][4cb47b4e]. Xi met with Moroccan Crown Prince Moulay Hassan, emphasizing the importance of Morocco's strategic location and abundant resources, including lithium and phosphate, which are crucial for battery production [6f29cb69].
China is increasing its investments in Morocco, with Gotion High-Tech planning to establish Africa's first EV battery gigafactory near Rabat, a project valued at $1.3 billion [4cb47b4e]. Additionally, other Chinese companies, such as BTR New Material Group and Shinzoom, are investing $300 million and $690 million, respectively, to bolster the EV sector in Morocco [4cb47b4e]. This development is expected to enhance Morocco's role in the global EV supply chain, especially as demand for electric vehicles continues to rise [6f29cb69].
Xi's engagement in Morocco also reflects China's broader strategy to expand its influence in North Africa, with potential future ties with neighboring Tunisia and Libya. Trade between China and Tunisia reached $2.2 billion in 2023, indicating a growing economic relationship [6f29cb69]. However, China's strengthening ties with Morocco may complicate its relationship with Algeria, particularly due to ongoing disputes over Western Sahara [6f29cb69].
The backdrop of this investment surge is the increasing tariffs imposed by the EU and the US on Chinese EVs, with new EU tariffs reaching up to 35.3% and US tariffs increasing from 25% to 100% [4cb47b4e]. As China exported 1.2 million EVs in 2023, with 47% going to the EU, these trade barriers have prompted a strategic pivot towards Morocco, which offers proximity to European markets and access to the African Continental Free Trade Area (AfCFTA) [4cb47b4e].
As China navigates its relationships in North Africa, the implications of Xi's visit will likely resonate across the region, influencing both economic and political dynamics. Morocco's approach may serve as a model for other Global South countries seeking to balance their trade relationships amid global tensions [4cb47b4e].