Why Chinese Companies Choose Morocco: EU Access, Trade Deals and Industrial Opportunity

At a glance

China–Morocco trade reached US$10.96 billion in 2025, up from US$9.04 billion in 2024. China's ambassador puts committed Chinese investment in Morocco at more than US$10 billion.
Tanger Med handled 11.1 million TEU in 2025, up 8.4%; more than 1,500 companies in its industrial zones generated MAD 188 billion of business.
Morocco produced about 500,000 vehicles in 2025, and automotive exports rose 17.4% to MAD 93.7 billion in the first half of 2026.
Real GDP grew 4.9% in 2025, and S&P restored Morocco to investment grade (BBB-) in September 2025.
Eligible projects can receive Investment Charter subsidies of up to 30% of the investment; Chinese citizens have entered visa-free since June 2016.

A few years ago, Morocco rarely came up when Chinese manufacturers talked about going abroad. Today, battery-materials producers, auto-parts suppliers, tyre makers, copper processors and even medical-supplies companies have built or announced plants there. A growing number of smaller business owners are now asking whether the North African kingdom deserves a closer look.

The answer depends on the sector and the business model. But Morocco combines several advantages that are rarely found together: it sits next to Europe, its trade agreements open doors to several large markets, its ports and industrial zones are well developed, and its relationship with China has warmed steadily for a decade.

Here is the big picture from the latest public data, followed by a closer look at where companies are actually setting up and how they got there.

Europe is just across the strait

Morocco's northern tip faces Spain across the Strait of Gibraltar, which Britannica puts at about 13 km (8 miles) at its narrowest point.

For a manufacturer, that changes the supply-chain arithmetic. Goods shipped from northern Morocco reach European customers in days rather than the weeks a sea crossing from China takes. That matters for companies that need short lead times or frequent, smaller deliveries.

Morocco also faces the Atlantic and has links south into West Africa, so a single plant can serve customers on several continents.

Trade agreements that open several markets

According to the US International Trade Administration (July 2025), Morocco has preferential trade agreements with 62 countries. The most significant are:

Agreement	In force	What it means
EU–Morocco Association Agreement	2000	Created a free trade area with the EU; tariffs on industrial goods were phased out
US–Morocco Free Trade Agreement	1 January 2006	Described by the US government as its only FTA in Africa
African Continental Free Trade Area	Ratified by Morocco in April 2022	A single market project covering 54 African countries

In 2026 a new route opened in the other direction. From 1 May 2026, China applies zero tariffs to imports from the 53 African countries it has diplomatic relations with, according to China Daily, citing Xinhua. Goods made in Morocco can therefore also be sold back into China duty-free.

There is an important condition: preferential tariffs apply only to goods that meet the rules of origin, meaning enough processing or value must be added in Morocco. Relabelling imported goods does not qualify. We look at exporting to the EU in more detail in a separate article.

Tanger Med: a port with industrial zones attached

Tanger Med is often the first stop on a Chinese company's scouting trip. According to the port authority's 2025 activity report, the complex handled:

11,106,164 TEU of containers, up 8.4%;
161 million tonnes of cargo in total, up 13.3%;
535,203 trucks, up 3.6%.

The port is backed by industrial zones. Morocco World News reports that in 2025 the Tanger Med zones and Mohammed VI Tanger Tech City, together covering about 3,000 hectares, hosted more than 1,500 companies. They generated MAD 188 billion (about US$18.8 billion) of industrial business, up 8%, and employ around 145,000 people in automotive, aeronautics, textiles, electronics, renewable energy, agri-food and logistics.

Cars are the anchor. Renault built 394,474 vehicles in Morocco in 2025, 299,395 of them in Tangier, and exported about 82% of its output to 63 markets, Morocco World News reports.

Stability, scale and investment incentives

On the macro side, the High Commission for Planning (HCP) reported real GDP growth of 4.9% in 2025, up from 4.4% in 2024. On 26 September 2025, S&P raised Morocco's sovereign rating from BB+ to BBB- with a stable outlook, returning the country to investment grade.

The industrial base is now substantial. Citing figures from NAAMSA, the South African automotive association, Morocco World News reports that Morocco produced 501,965 vehicles in 2025, about 40.8% of Africa's output. Production capacity is a separate figure: in June 2025 the industry minister told parliament that national capacity should reach about one million vehicles a year by the end of 2025 (Hespress). Exports keep climbing: Foreign Exchange Office data show automotive exports of MAD 93.7 billion in the first half of 2026, up 17.4% (Morocco World News).

On the policy side, the Investment Charter set out in Framework Law 03-22 works as follows, according to the AMDIE investment agency's overview:

Eligibility: an investment of at least MAD 50 million, or at least 150 permanent jobs;
Main subsidies: a job-creation bonus (5–10% of capex), a territorial bonus (10% or 15%) and a sector bonus (5%), plus smaller bonuses for gender balance, technology, sustainability and local content;
Cap: combined, these can reach up to 30% of the total investment.

Morocco will also co-host the 2030 FIFA World Cup with Spain and Portugal, which is driving infrastructure spending; we cover that in a separate article.

China and Morocco: a relationship gaining momentum

Ties have accelerated over the past ten years:

In May 2016 the two countries established a strategic partnership, and from June 2016 Morocco waived visas for Chinese citizens, according to China's Ministry of Foreign Affairs.
On 17 November 2017 the two foreign ministers signed a Belt and Road memorandum of understanding in Beijing.
Bilateral trade was US$10.96 billion in 2025: Chinese exports of US$9.88 billion and imports of US$1.08 billion. China Daily reports that China is Morocco's third-largest trading partner and its largest in Asia.

Investment is following trade. In a March 2026 interview, China's ambassador Yu Jinsong said committed Chinese investment in Morocco exceeds US$10 billion, concentrated in industrial parks, auto parts, new energy and textiles (China MFA). China Daily adds that, as of March 2026, Mohammed VI Tanger Tech City had signed agreements with 42 companies, 34 of them Chinese, with planned investment of about US$3.5 billion.

Earlier movers include Hailiang and Shinzoom, whose plans to build plants in the Tangier area were reported by Reuters. Hailiang filed for a US$288 million plant making copper alloy, pipe, rod and lithium-battery foil (Morocco World News). Sentury Tire's Tangier plant went into production in 2024, with 2025 output expected at 6–8 million tyres (European Rubber Journal).

People are moving too. Morocco's ambassador to China said about 200,000 Chinese visitors came in 2025, nearly double the year before (Hespress). Royal Air Maroc flies direct between Beijing and Casablanca, and China Eastern's Shanghai Airlines links Shanghai and Casablanca with a stop in Marseille.

Case study: how Gotion set up in Kenitra

Gotion High-Tech's battery plant in Kenitra shows what a large Chinese project in Morocco looks like from agreement to start-up.

Milestone	What happened
June 2024	Strategic investment agreement signed in Rabat (Médias24)
September 2025	Construction began after earthworks
13 months later	Buildings and infrastructure completed
Late October 2026	Commissioning of production equipment scheduled; first cell line in October, second in November
End of 2026	Battery sales expected to begin

The timeline is from Morocco World News (October 2026). The site is in Kenitra's Atlantic Free Zone. Phase one involves about MAD 13 billion (US$1.3 billion) and targets 20 GWh of LFP cells, battery packs and energy storage systems, plus 100,000 tonnes of cathode materials, for customers in Morocco, the rest of Africa, Europe, the Middle East and the United States.

Three points are worth noting for smaller firms:

Train people early. More than 400 Moroccan employees had been hired, many trained at Gotion's sites in China.
Use several sources of finance. The African Development Bank approved a €100 million loan in July 2026.
Suppliers follow anchors. In September 2026, Gotion and Volkswagen's PowerCo announced a cathode-materials joint venture in Kenitra worth about €480 million.

Published figures for phase-one capacity and job numbers vary between sources, so treat company announcements as the reference.

Where to locate: Tangier, Kenitra and Nador compared

	Tangier	Kenitra	Nador
Location	North coast, on the Strait of Gibraltar	Atlantic coast, north of Rabat	North-east, Mediterranean coast
Port	Tanger Med	Served by nearby ports and rail	Nador West Med; first container terminal opened October 2026
Zones	Tanger Med zones; Tanger Tech (about 494 ha)	Kenitra industrial acceleration zone (about 599 ha); Atlantic Free Zone	700 ha private industrial and logistics platform planned
Anchor investors	Renault, Hailiang, Sentury, Sanlian Forging	Stellantis, Gotion	Early stage

Zone sizes come from the extension decrees the government approved in March 2025 (maroc.ma). After its expansion, Stellantis's Kenitra plant has capacity of 535,000 vehicles a year, backed by €1.2 billion of investment and about 3,100 new direct jobs (TelQuel). Nador West Med began operating its East container terminal on 31 October 2026; the whole complex involves about MAD 54 billion of public and private investment, and the West terminal is due in April 2027 (Le360).

Mid-sized suppliers are arriving too. In August 2026, Wuhu Sanlian Forging registered a subsidiary in Tanger Tech and raised its overseas investment filing to €18 million (Morocco World News). In May 2026, a Jiangsu medical-supplies group broke ground at Tanger Tech, with first-phase construction estimated at MAD 151.75 million (Morocco World News).

The challenges

Morocco is not frictionless.

Language and procedures. Business runs mainly in Arabic and French, and English is less widely used. Company registration, bank accounts and residence permits follow their own procedures and timelines, with document requirements that differ from China's.
Land. Suitable industrial sites are not always available. Sanlian first switched its plans to Rabat because it could not secure land in Tangier, and returned only after obtaining a plot and paying a deposit.
Rising costs. The non-agricultural minimum wage went up 5% to MAD 17.92 an hour from January 2026.
Thresholds and competition. The main Investment Charter subsidies start at MAD 50 million, out of reach for most small firms. And as more Chinese companies arrive in the same zones, competition among them is growing.

Building these factors into your timeline and budget from the start is far cheaper than discovering them after arrival.

Questions to ask before you invest

Can my product meet EU or US rules of origin, and how much value will I add locally?
Who are my target customers, and are they already producing in Morocco or southern Europe?
Which zone fits, and do its entry conditions and incentives apply to my project?
Will I rent or buy land and buildings, and how long until they are ready?
How will I handle French or Arabic communication and local management?
How will capital leave China compliantly, and how long will the outbound investment filing take?
What is a realistic timeline, in months, from registration to first production?

What it means for Chinese businesses

Manufacturers and processors targeting Europe or the US, and able to meet rules of origin, particularly in auto parts, new-energy supply chains, textiles and apparel, furniture and building materials.
Supply-chain service providers: as battery and automotive clusters grow in Tangier and Kenitra, so does demand for packaging, tooling, logistics and equipment maintenance.
Traders and distributors: Morocco's domestic market is sizeable and can serve as a base for West Africa; with China's zero-tariff policy, Moroccan-made goods for the Chinese market are also worth studying.
Service and consumer businesses: more Chinese visitors and more Chinese staff on the ground create demand for hospitality, travel and business services.

The most useful next step is a focused visit: take the questions above, see the zones, meet potential customers and suppliers, and test your cost assumptions on the ground.

Sources

Information as of November 2026, for general reference only; not investment advice.

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