Associé
Analysis & trends
Business relations between Morocco and China: a rapidly expanding partnership
How have relations between Morocco and China intensified in recent years?
Established in 1958, diplomatic relations between the Kingdom of Morocco and the People’s Republic of China have gone from strength to strength ever since.
In particular, Sino-Moroccan cooperation has intensified significantly in key areas, such as trade, investment, infrastructure and energy, since the signing on 11 May 2016 by His Majesty King Mohammed VI and His Excellency President Xi Jinping of a joint declaration on the establishment of a strategic partnership between the two countries.
In the wake of this strategic partnership, driven by the will of the Heads of State of the two countries, a number of significant advances have been made in recent years:
- The opening of three Confucius Institutes in Morocco, actively contributing to the dissemination of Chinese culture and to the dialogue between the two nations;
- The signing of a Memorandum of Understanding in November 2017, formalising Morocco’s membership of the Chinese “Belt and Road” initiative (BRI) launched in 2013, making the Kingdom the first African country to take part;
- The conclusion, on 5 January 2022, of an agreement relating to the plan for the joint implementation of the BRI, between the Moroccan Minister of Foreign Affairs, African Cooperation and Moroccans Residing Abroad and the Vice-Chairman of the Chinese National Reform and Development Commission; and
- The strengthening of trade relations between the two countries, with the People’s Republic of China becoming Morocco’s third largest trading partner and its largest supplier in 2021.
Thanks to its strategic geographical location, state-of-the-art infrastructure, skilled human capital and close links with the countries of Atlantic Europe and West Africa, Morocco offers a particularly attractive environment for Chinese investors. Its advantageous legal framework makes it a gateway of choice, not only to the African continent, but also to Europe.
Aware of the promising prospects for increased Chinese investment on its territory, Morocco, via its Minister in charge of investment, conducted a roadshow in China in April 2023 to promote Morocco as a preferred destination for Chinese investors.
Following this initiative several Chinese economic players expressed their interest in developing projects in Morocco. In 2024, the Moroccan government signed major investment agreements with various Chinese groups, including Gotion High-Tech (to set up a gigafactory in Morocco) and Sentury Tire (to set up a radial tyre manufacturing plant).
However, there are still many opportunities to be seized in a number of sectors: industry, infrastructure, mining, health, education and tourism.
What measures is Morocco implementing to attract Chinese manufacturers?
The Cité Mohammed VI de Tanger Tech , the new hub for Chinese investment in Morocco
Located on a 950-hectare plot of land, the Tanger-Tech Industrial Acceleration Zone – developed and managed by a management company (SATT) created through a partnership between the Tanger-Tétouan-Al Hoceima Region, the Agence Spéciale Tanger-Méditerranée, the Bank of Africa group and the Chinese group CCCC/CRBC (35%) – is designed to host Chinese industries operating in a range of sectors, including automotive, aeronautics, renewable energy and construction materials.
To make it easier for Chinese investors, the SATT, as a single, privileged point of contact:
- acts as a one-stop shop within the Mohammed VI City of Tangier Tech, offering manufacturers a simplified pathway, giving them visibility over the implementation of their projects; and
- is responsible for providing them with all services ancillary to their core business: rental of buildings, distribution of water and electricity, surveillance and security of the area, etc.
Thanks to its proximity to Europe and the Tanger Med port complex (number one port in the Mediterranean and Africa), its administrative status and the favourable legal status enjoyed by the companies based there[1], the Mohammed VI City of Tanger Tech has everything it takes to establish itself as a strategic hub for Chinese investment in Morocco and a leading industrial and commercial platform linking Africa and Europe.
A number of large-scale projects have already been launched by leading Chinese manufacturers in the area, including a gigafactory (BTR New Material), several manufacturers of products used in the production of lithium batteries (Shinzom, Hailiang) and various players in the automotive industry (Sentury Tire, Bonsing, XEV).
The new investment charter, an incentive framework to encourage the development of foreign investment in Morocco
The framework law n°03-22 forming the investment charter (the Charte de l’Investissement) introduces investment support schemes, from which industrialists can benefit after signing an investment agreement with the State defining the reciprocal commitments of the parties and the terms and conditions of their implementation.
In addition, any project covered by an investment agreement will benefit from tax and customs advantages, under the conditions defined by the laws and regulations in force.
More specifically, the Investment Charter introduces a number of particularly attractive support measures, in the form of subsidies for investors of up to 30% of the eligible investment amount, depending on the characteristics of each project.
On 27 August 2002, the Kingdom of Morocco and the People’s Republic of China signed an agreement to avoid double taxation and facilitate cross-border trade and investment between the two countries.
Which sectors offer promising opportunities for Chinese investors in Morocco?
The automotive industry
With its proven expertise in the automotive industry, Morocco is likely to attract many Chinese investors in the sector.
To date, Chinese companies are focusing their activities in Morocco on the production of batteries and materials for electric vehicles.
Gotion High-Tech, a leader in the electric mobility sector, has signed an agreement with the French government to set up an industrial ecosystem for the production of batteries for electric vehicles and energy storage systems in Kenitra, with a projected investment of around 65 billion dirhams (around $6.5 billion).
In addition, in September 2023, the Moroccan holding company Al Mada signed an agreement with the Chinese group CNGR for the creation of an industrial unit dedicated to the production of components for electric vehicle batteries.
Furthermore, with Morocco’s ambition to consolidate its position as an industrial hub for electromobility, negotiations are reportedly underway to attract more Chinese equipment manufacturers to complete the Moroccan automotive ecosystem.
Energy
Chinese companies are particularly active in the energy sector, in both conventional and renewable energy.
Since 2013, the Chinese company Sepco III (Shandong Electric Power Construction) has been building and operating a 318 MW coal-fired power station near the town of Jerrada (L’Oriental region), following a call for tenders issued in November 2011 by the Office national de l’électricité et de l’eau potable. The work, worth more than 3 billion dirhams (nearly $3 billion), was mainly financed by China Exim Bank, the Chinese import-export bank.
China Power Construction also recently won an EPC contract to build a 180 MW heat recovery steam plant in the Marrakech-Safi region. The same group has been involved in a number of strategic projects, including the Jorf coal-fired power plant (350 MW) and the Nuon concentrated solar power plant (150 MW).
The development of the energy partnership between China and Morocco has also extended to renewable energy. The same group (China Power, Sepco III), together with other operators, is responsible for the turnkey construction of the Noor 3 solar power plant.
In addition, under an investment agreement signed with the Moroccan government in October 2023, Aeolon has committed to raising $245 million and creating almost 3,332 jobs to build its first international wind turbine blade manufacturing plant in the Nador region.
The Kingdom of Morocco’s major ambitions in the green hydrogen sector, combined with the expertise of Chinese operators in this field would indicate very promising prospects for both parties.
On 5 March 2025, the Moroccan government announced that the consortium comprising the UEG and China Three Gorges groups – which is developing a green ammonia production project in the Kingdom’s southern provinces – was one of the first five consortia to be selected as part of the Morocco Hydrogen Offer, demonstrating the increasingly strong presence of Chinese energy companies in Morocco.
Infrastructure
China is playing a key role in the modernisation of Morocco’s infrastructure. Chinese companies have participated in the construction of numerous road and rail infrastructure.
Very recently, a number of Chinese companies were awarded strategic contracts as part of the project to extend the high-speed line from Kénitra to Marrakech and then on to Agadir.
China Railway Design Corporation was awarded the contract to carry out the preliminary design studies for the Agadir-Marrakech line in July 2023, and opened a branch in Rabat in May to strengthen its local teams.
In September 2024, CREC 4, a subsidiary of the Chinese group CTEC, won the first civil engineering contract for the project, worth 3.4 billion dirhams (nearly 340 million dollars).
China Overseas Engineering Group Corporation Limited and China Railway 20th Bureau Group have also been awarded, as part of the same project, the tenth and fifth lots of civil engineering works launched by the Office national des chemins de fer, for amounts of around 1.3 billion dirhams (around 130 million dollars) and 1.8 billion dirhams (around 180 million dollars) respectively.
The Sinohydro Bureau 5 group, a subsidiary of Power China, also has a strong presence in infrastructure construction. Having already made a name for itself with the construction of the Rabat ring road in 2011, it is now responsible for building an underground tunnel near Rabat in collaboration with the Société Générale des Travaux du Maroc, as well as extending Rabat airport.
The cable-stayed bridge on the Rabat bypass motorway was built by the China Overseas Engineering Corporation and Major Bridge Engineering Company (Mbec) consortium at a cost of around 700 million dirhams (around $70 million).
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In conclusion, business relations between Morocco and China are booming, driven by a shared strategic vision and mutual interests. As the Ambassador of the People’s Republic of China to Morocco pointed out in a speech on 13 February 2025, China considers Morocco to be a “natural” partner and a “privileged” destination for its investments. This partnership should continue to consolidate in the years to come, to the benefit of both nations
