The pace of strengthening relations between China and Morocco is increasing significantly, and the Kingdom has become a major destination for Chinese investments in the fields of infrastructure and technology, at a time when Morocco seeks to strengthen its position as a logistical center linking Africa and Europe.
In a report published by Al-Monitor, writer Sabina Siddiqui said that the major Chinese infrastructure company “Shanhaiguan Bridge Railway” and the German company “Vossloh Kogiver”, a leader in the field of railway technology, obtained contracts worth $56.2 million earlier this month to supply basic components for the expansion of… High-speed rail network in Morocco.
She added that after the launch of the Buraq train, the fastest train in Africa, which reaches a speed of 300 kilometers per hour, in November 2018, the Moroccan government expressed its desire to expand the network of high-speed trains, which currently has a length of 323 kilometers, according to the national railway operator in Morocco, National Office of Moroccan Railways, the contracted upgrades will support the Kenitra-Marrakesh line, one of the country’s most vital transport corridors.
At the same time, the China Railway Design Corporation has begun conducting preliminary draft studies for the construction of Morocco’s second high-speed railway line, planned to connect Casablanca and Agadir.
For his part, Zeeshan Shah, an analyst at FINRA in Washington, attributed the importance of expanding the high-speed rail line in the Kingdom to several factors, the first of which is that “it will help transport visitors throughout the country to attend the 2030 FIFA World Cup, which Morocco will host jointly with Spain.” “And Portugal. It will also reduce travel time between major Moroccan cities and facilitate the movement of goods, making Morocco the main logistical center for trade between Africa and Europe.”
Commenting on Beijing’s role in expanding the high-speed train service in Morocco, the Moroccan media advisor based in Rabat, Anas Mazour, said that while Chinese companies have won a number of deals to implement the high-speed train between Kenitra and Marrakesh, this would contribute to achieving “an important aspect of “Belt and Road Initiative” In terms of infrastructure, the car battery manufacturing projects recently signed with major Chinese companies contribute more to the development and economic aspect of Morocco.
Writer Sabina Siddiqui explained that the new electric car sector in China is receiving great attention in Morocco, which is the largest car manufacturer in Africa, and has the ability to produce nearly one million cars annually, and its reserves of important battery materials are accelerating its emergence as a center for car manufacturing. Electric.
Last year, Morocco and the Chinese company Guoshen Hi-Tech signed a memorandum of understanding worth $6.4 billion to build a large factory for electric car batteries near Rabat.
Morocco, the Belt and Road
In 2017, Morocco became one of the first countries in Africa and the Arab world to join the Belt and Road Initiative launched by Beijing, and it became a member of the Chinese-led Asian Infrastructure Investment Bank in December 2018.
Moreover, in January 2022, Moroccan Minister of Foreign Affairs Nasser Bourita and Vice-Chairman of the Chinese National Reform and Development Commission, Ning Jijie, signed an agreement on the joint Belt and Road Initiative implementation plan.
The writer pointed out that “Chinese economic investments in Morocco were moving towards a strategic partnership with a mutual profit model, especially in light of the availability of the largest phosphate reserves in Morocco, along with a number of other minerals used in the battery industry.”
The author stated that the agreement aims to enhance access to Chinese financing within the framework of the “Belt and Road” initiative, establish huge projects in Morocco, and facilitate trade and joint projects.
After selecting 14 important sectors for projects under the Belt and Road Initiative, the priority areas include infrastructure, health, agriculture, industry, renewable energy and technology.
Referring to the geo-economic context of the plan, Mazour said that this made Morocco an “economic link” with which China could cooperate to export its industrial products to Europe and North America.
For example, Mazour pointed out that manufacturing electric car batteries in Morocco represents a very important step for Morocco to “maintain its advanced position in the automotive industry, create more job opportunities, and develop human resources skills.”
Mazour added that the increasing Chinese investments in the information and communications technology sector in Morocco, and the agreements concluded between Huawei and various Moroccan entities, including ministries and educational institutions, are a “major contribution to the country’s development.”
Strategic relations
The writer stated that Rabat and Beijing have enjoyed diplomatic relations since 1958, and are linked to a strong partnership, and China supported political stability in Morocco by showing support for its government when a political uprising broke out in February 2011.
The writer pointed out that a joint declaration was signed regarding the establishment of a strategic partnership between Rabat and Beijing, during the visit of King Mohammed VI to China in 2016, making Morocco the first country in North Africa linked to a comprehensive cooperation charter with the country that has the second largest economy in the world.
The writer noted the conclusion of 15 agreements between Moroccan and Chinese companies, and then in 2021, Chinese State Councilor Yang Jiechi met with Bourita in Beijing, and the two sides agreed to deepen their strategic partnership.
Business relations
In 2022, China became Morocco’s third largest trading partner and the first partner in Asia, with the total volume of trade exchange reaching $7.6 billion, and currently, Chinese investments in Morocco reach about $56 million.
However, according to the 2023 Global Chinese Investment Index report issued by the Economic Research Unit of the British Economist magazine, Morocco was the third most attractive country for Chinese investment in Africa last year after Egypt and South Africa.
During his recent visit to Morocco, Chinese Minister of Commerce Wang Wentao met with Moroccan Minister of Commerce Riad Mazour, and the latter presented the potential of the African Continental Free Trade Area, which is a way to develop Moroccan and Chinese products for promising African markets. Wang noted that the Kingdom has become a preferred destination for Chinese companies.
At present, the Mohammed VI City of Technology in Tangier, a Chinese-sponsored manufacturing and technology zone outside the coastal city of Tangier in northern Morocco, accommodates dozens of Chinese companies.
Shah noted that trade relations between Morocco and China have witnessed a boom over the past few years, noting that there has been a 50% increase in the volume of trade between the two countries since Morocco officially joined the Chinese “Belt and Road” initiative in 2017.
Shah added that in just a few years, China has overtaken France to be the second largest source of imports from Morocco, “especially in the automobile and electric car components sectors, given that Morocco is now the largest exporter of cars to the European Union.”
This is because Morocco is “an attractive destination for Chinese investment in battery production, and ultimately electric vehicle assembly, due to the presence of a large car manufacturing base in the country,” Shah said.
Joint projects
The writer quoted what the economist at the Chinese Academy of Social Sciences, Dong Liu, wrote in 2019, when he pointed out that Morocco has a promising environment for expanding labor-intensive industrial manufacturing, which gives it an advantage to transfer potential manufacturing from China to Morocco.
Thanks to its geographical proximity to Europe, the stable political and economic environment, and free trade agreements with the European Union and the United States, Morocco has become an ideal location for establishing joint projects for Chinese and Western companies alike.
Explaining the advantages of this arrangement, Shah said that Morocco has become increasingly important to China, as it has become “a starting point for its companies to export to the European Union, and can help evade any potential tariffs that EU countries may impose on Chinese goods coming directly from China.” China”.
Shah added that Morocco gives China unprecedented access with regard to its economic interests in both Africa and the European Union, and has become “China’s main gateway to North and West Africa thanks to its geographical location and transportation infrastructure.”
