China finds Morocco a back door to Europe: 'It is becoming a very serious problem'

China has identified Morocco as a strategic backdoor into Europe, with officials warning that this growing Chinese industrial presence poses a serious threat to European economic interests. In the arid hills surrounding Tangier, where once only crops and sheep roamed, a small Chinese-led industrial city is taking shape. Known as Tanger Tech, this project aims to attract over $4 billion in investments and create around 22,000 jobs directly. More than 40 companies, predominantly Chinese, have already signed agreements to establish operations within its boundaries, which include factories producing automotive parts and battery components for electric vehicles destined for the European market. The proximity of Morocco to Europe, combined with its favorable trade agreements, has made it an attractive location for Chinese manufacturers seeking to bypass EU restrictions. While Brussels has imposed barriers against Chinese electric vehicles, Chinese producers have begun relocating parts of their supply chains to Morocco, leveraging its access to both the EU and the U.S. through free trade agreements. This strategy has raised concerns among European officials, who fear that China could exploit these partnerships to circumvent existing trade protections. European Commission official Maros Sefcovic has warned that China's use of “transshipment” via third-party countries such as Morocco could undermine the competitiveness of European industries. The Commission has previously found evidence that aluminum wheels sent from Morocco received subsidies from both Moroccan and Chinese governments through cooperation programs under President Xi Jinping’s leadership. Determining the boundary between legitimate investment and a deliberate effort to evade EU regulations remains a challenge for European authorities. This expansion of Chinese influence in Morocco is not sudden. Over nearly a decade, Beijing and Rabat have deepened their political and economic ties. Morocco joined China’s Belt and Road Initiative in 2017, becoming the first North African country to sign a specific cooperation plan under the initiative. Tanger Tech represents one of the key projects of this partnership. The two nations have also strengthened their commercial relationship, with bilateral trade reaching nearly $11 billion in 2025, making China Morocco’s third-largest trading partner. Now, China seeks to further deepen this relationship by proposing a free trade agreement. According to recent reports from Bloomberg, Morocco is reviewing the proposal, though formal negotiations have yet to begin. The push for closer economic ties aligns with broader efforts by China to expand its footprint in Africa, particularly in sectors such as electric vehicle production. A major component of this strategy involves the electric vehicle industry. In June 2024, Chinese battery manufacturer Gotion High-Tech announced a $1.3 billion initial investment to build Morocco’s first gigafactory for batteries. The project includes plans for future expansion, potentially increasing total investment to $6.5 billion, making it one of the largest Chinese industrial ventures in Africa. Other firms, including Hailiang and BTR New Material Group, are also preparing to establish facilities near Tangier, focusing on copper components and battery materials respectively. As Chinese companies continue to invest heavily in Morocco, the implications for European markets grow more complex. With the EU struggling to balance protectionist measures with the need for competitive industrial policies, the role of strategic partners like Morocco becomes increasingly critical. The situation underscores the evolving dynamics of global trade and the challenges faced by traditional economic powers in maintaining their influence amid shifting geopolitical landscapes.