In 2007, when Morocco inaugurated the port from Tangier Med off the Spanish coast, many saw it as an ambitious logistical gamble. Less than two decades later, that port has not only become the largest of the Mediterranean and Africabut has begun to surpass historic European giants like Algeciras in traffic. What seemed like a regional infrastructure ended up becoming one of the main commercial gateways to Europe.
A half-open door to Europe. Europe has been trying for years reduce your dependency China’s industrial sector and, more recently, protect its manufacturers against the avalanche of electric vehicles from the Asian giant. The tariffs imposed by Brussels, in fact, respond precisely to that objective.
However, I remembered the weekend the financial times that, while attention was focused on Chinese ports and factories in the country’s interior, Beijing began to build a much closer alternative: an industrial network located on the other side of the Strait of Gibraltar. The growing concern in Brussels does not arise because China is exporting more cars from its territory, but because it is transferring part of its production capacity to a country that enjoys privileged access to the European market.
Map of the surroundings of Tangier, with Tanger Tech City (to the south), Tanger Automotive City and the port of Tangier Med
Morocco as an industrial platform. It explained the means that the transformation is visible around Tangier and Kenitrawhere Chinese investments in tires, brakes, electronic components, battery materials and future gigafactories are multiplying. What is emerging are not simple isolated plants, but a supply chain increasingly complete capable of feeding the European electric car industry.
Morocco offers practically everything you are looking for manufacturers: geographical proximity to Europe, competitive labor costs, renewable energy, tax advantages and an extensive network of trade agreements. For many Chinese companies, producing there is more attractive to continue manufacturing in China and then face the growing European trade barriers.
The fear of Brussels. European concern does not lie solely in foreign investment. What is worrying is the possibility that Morocco will become in an indirect way so that products backed by Chinese capital, technology and subsidies enter Europe with much more favorable conditions.
The European Commission already has detected cases in which components manufactured with Chinese financial support end up benefiting from preferential agreements. The challenge is to distinguish where it ends an authentic Moroccan industrialization and where a strategy designed to circumvent tariffs begins. Put another way, the more complex supply chains become, the more difficult it becomes to answer that question.
Beijing’s geographical advantage. If you like, China too. has understood that geography can be as important as technology. Off the Spanish coast is a country connected by trade agreements with Europe and the United States, equipped of modern ports and increasingly integrated into global production chains.
From the Chinese perspective, installing factories in Morocco does not mean abandoning Europe, but rather get even closer to her. Instead of shipping finished products from thousands of miles away, companies can manufacture components and vehicles a few hours of the main European markets. The strategy reduces costs, limits commercial risks and makes the application of protectionist measures difficult.
A battle for European industry. What happens in Morocco reflects much broader economic competition. Europe tries to protect an industrial base that consider strategicas China looks for new ways to keep its huge manufacturing capacity running despite increasing Western restrictions. The result is that North Africa is becoming a space increasingly disputedwhere the interests of Brussels, Rabat and Beijing intersect.
For Morocco, investments mean jobs, infrastructure and growth. For China, they represent a privileged platform next to the gateway to the European market. And for the European Union they constitute a uncomfortable question: If Chinese production can be installed just on the other side of the Mediterranean, to what extent are tariffs really capable of slowing its advance?
Image | Adam Cle, The Spanish Monkey
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