China-Morocco ties poised to grow

China’s president Xi Jinping on his way from a G20 summit in Brazil stopped for a short visit in Morocco, an event that is reflective of the interest of Beijing in Morocco as a rising regional power and economic hub.

Xi Jinping was received in Casablanca by Crown Prince Moulay El Hassan and Prime Minister Aziz Akhannouch.

“This visit reflects the strong bonds of friendship, cooperation, and solidarity between the Moroccan and Chinese peoples, thanks to the shared commitment of His Majesty King Mohammed VI and His Excellency President Xi Jinping to advancing the Sino-Moroccan strategic partnership, sealed during the Sovereign’s landmark visit to China in May 2016,” reads a statement from the Moroccan news agency MAP

One China

Morocco considers the principle of “One China” a pillar of its ties with Beijing, which also respects the Kingdom’s territorial integrity.

The Kingdom hopes China would join a long list of influential countries that tool a stand regarding Morocco’s sovereignty over the Sahara territory.

As a permanent Security Council member, China has never blocked any of the recent resolutions that spoke favorably about Morocco’s autonomy plan.

In picking Morocco for a short visit on his way after the G20, Xi Jinping signals that China is about to make a U-turn in how it views the conflict.

Rising Economic ties

Chinese investments in Morocco’s strategic sectors are on the rise, thanks to the business climate in the country, its strategic position as a gateway to the African, European and American market and the existence of qualified labor and vibrant clusters as well as world class infrastructure and leading ports, such as Tanger Med.

For instance, China plays a significant role in the high-speed rail (HSR) project from Kénitra to Marrakech. Several Chinese companies have won major contracts for this project. For example, the company CREC 4 secured a contract worth 5.6 billion dirhams for earthworks and engineering structures. Additionally, Covec won a contract worth 1.3 billion dirhams for civil engineering works.

China stands as a top trading partner for Morocco exporting over 6 billion dollars of manufactured goods to the country in 2023. Morocco’s exports China were basically raw material.

But in terms of innovation, China stands as a leading investor in Morocco, where it seeks to Morocco’s strategic location and trade agreements, particularly with the United States and Europe.

One of the largest investments is by Gotion High-Tech, a Chinese-German battery maker, which signed a deal for a $6.4 billion investment to construct Africa’s first EV battery factor.

In May, Chinese auto battery manufacturers Hailiang and Shinzoom announced two separate plans to produce copper and anodes respectively for a combined total nearing 1 billion dollars in Tanger Tech.

In April, BTR New Material Group signed a deal with the Moroccan government to set up a cathodes plant, critical to EV battery manufacturing.

In September last year, CNGR Advanced Materials partnered with Moroccan private investment fund Al Mada to build an electric vehicle battery plant in Jorf Lasfar worth 2 billion dollars.

Besides phosphates, Morocco is rich with cobalt, a critical requirement in EV battery manufacturing, needed by Chinese companies.