By: Gayathri Pramod, Research Analyst, GSDN
Chinese President Xi Jinping’s recent visit to Morocco marks a significant moment in the evolving geopolitical landscape. Landed at Casablanca on November 21, 2024 Moroccan Prince Malay EL Hassen welcomed the Chinese delegates signalling growing ties between China and Morocco. This visit emphasizes their commitment to deepening their partnership and highlights their mutual aspirations to expand their influence and foster robust economic cooperation. The visit highlights Beijing’s growing strategic commitment for expanding its influence across North Africa, as this region serves as the gateway to Africa, Europe and the Middle East.
During the visit, the discussion centred around deepening economic cooperation, particularly in areas like renewable energy and infrastructure projects, such as Morocco’s first electric vehicle gigafactory (EV), which is taking centre stage. Moreover, this growing partnership is of global strategic importance regarding China’s ambitious Belt and Road Initiative and the utilization of Morocco as a strategic hub for the Chinese army to stretch its footprint across and beyond the region. At the same time, Morocco’s strategic importance as a global trade hub and the ever-intensifying competition between China and the United States also play a significant role. So, through this paper, I will unpack the dynamics shaping this relationship and what it means for global power, spanning from the geopolitics of infrastructure to the geographic positioning of Morocco and trade and investment and analyze Xi Jinping’s visit and investments in Morocco and future implications.
Geopolitical Implications and Competitions in Africa
Xi Jinping’s recent visit to Morocco underscores China’s expanding influence in Africa, which has become a battleground for global power competition. Africa’s vast natural resources and emerging markets are critical aspects which make this region more pivotal for the strategic goals of big powers. Until now, China’s Belt and Road Initiative has become one of the significant geostrategic initiatives, marking the cutting edge initiative of China to inject billions of dollars into infrastructural developments across the continent, especially the construction of ports.
This has positioned Beijing as a dominant player in Africa’s economic landscape, and BRI impact is evident in the large-scale projects like the Mambasa-Nairobi Standard Gauge Railway in Kenya to the Doraleh Multipurpose Port in Djibouti; Beijing’s massive investments have modernized key infrastructure across the continent, connecting previously isolated regions to the global markets. Morocco became the first North African country to formalize its Belt and Road Initiative. This partnership has attracted significant Chinese investments, such as the US$ 1.3 billion electric vehicle battery gigafactory being built in Kenitra, a project set to make Morocco a leader in the global renewable energy supply chain.
All these investments and projects cement China’s long-term influence over the region. However, China’s approach has drawn criticism, and many scholars have accused it of fostering debt-trap diplomacy, where developing nations are burdened with unsustainable loans tied to Chinese firms and interests, just like how Kenya struggles with the repayment of its Chinese-funded railway exemplifies these concerns.
On the other hand, the United States has approached Africa through initiatives like Power Africa and Prosper Africa, emphasizing sustainable trade and partnerships governance reforms; unlike China’s infrastructure-heavy strategy, US efforts focus on capacity building and fostering private sector engagements. However, these initiatives have often been criticized for needing to be more visible than China’s tangible large-scale projects. Xi Jinping’s visit to Morocco places the country firmly within the more considerable geopolitical competition as a relatively stable and economically progressive nation in North Africa. Morocco has become a focal point for both Chinese and American engagement.
For Beijing, Morocco is a key partner in extending the BRI to North Africa and leveraging the country’s geographic and economic advantages. By strengthening economic ties with Morocco, China is poised to facilitate smoother trade routes and enhance its regional economic influence, paving the way for increased collaboration in various sectors, including infrastructure, energy, and technology. The implications of this partnership extend beyond mere economics; they also carry substantial geopolitical weight. As China seeks to expand its reach and influence on the global stage, cultivating relationships with key partners like Morocco becomes increasingly important. This partnership reflects a broader strategy of diversifying China’s economic and diplomatic relationships, reducing dependency on any single region, and strengthening its stance as a dominant player in global affairs.
Moreover, the collaboration between China and Morocco is a model for developing nations to engage with larger economies to promote mutual growth. As Morocco continues modernizing its infrastructure attract foreign investment, China’s involvement could accelerate these processes, benefiting both nations. This synergy supports Morocco’s economical developmental aims and aligns with China’s broader objectives under the BRI initiative, paving the way for a more interconnected world. Morocco remains a critical ally for Washington, particularly in counter-terrorism and trade as a bull against China’s growing regional influence. Along with the geopolitical implications, the strategic position of Morocco makes the region more vital not just for China but also for many other countries, mainly the USA.
China’s FDI share in Morocco is 3 per cent and has continued to increase gradually over recent years. However, Morocco has not cut off its relations with the European Union and the United States; instead, it has emphasized the investments. Since the early 2000s, China has invested nearly US$ 1.26 billion in Morocco’s Transport, Communication and Energy. Morocco’s participation in China’s BRI has significantly benefited its economy. This has led to accelerated industrialization, development, and a renewed drive to attract Foreign Direct Investments. Chinese investments, particularly in tourism, have also hugely boosted Morocco’s economy. Chinese firms have entered into hotels and resorts, spas, and amusement parks where visa applications have increased dramatically by 3500% from China to Morocco, significantly improving Chinese tourists to Morocco. Despite being relatively new, Sino-Morocco relations contrast with other North African countries’ trading partnerships. However, Morocco is gradually growing deeper in China’s debt book policy; the North African nation now owe China US$ 1030.55 million. This development is bringing the country nearer to the Asian behemoth China.
Geostrategic Significance
The geographic position of Morocco makes it a strategic lynch for global trade and geopolitics. Situated at the crossroads of Africa, Morocco act as a gateway for trade and investment to Europe and the Middle East. Its proximity to the Strait of Gibraltar is one of the world’s busiest transit points for trade between the Atlantic Ocean and the Mediterranean Sea. Morocco’s Free Trade Agreement with the European Union and the United States provides unparalleled access to major global markets. For China, investing in Morocco is a strategic move to secure a foothold in a region that connects three continents.
Key points illustrate how Beijing is leveraging Morocco’s location to strengthen its global trade networks is mainly through the investments in the Electric Vehicle battery Gigafactory in Kenitra, which Chinese firms announced as a tech-planned investment of US$ 1.3 billion. This facility is poised to make Morocco a hub for green energy supply chains. Trying the country to Europe’s growing demand for EV components, the factory’s initial capacity of 20 GWH, expandable to 100 GWH, will place Morocco at the centre of a burgeoning renewable energy market. China has also widely expressed interest in Morocco’s rail infrastructures, particularly the proposed Maresh-Agader high-speed rail line. This project will enhance domestic connectivity and bolster Morocco’s position as a regional logistic hub. This complements China’s broader strategy of developing African transportation networks into seamless trade corridors that connect African nations to global markets through Chinese-built infrastructures.
Morocco’s strategic location plays a vital role in Europe, particularly for the European Union, as it seeks to diversify its energy sources and reduce its reliance on Russian energy. By establishing Morocco as a renewable energy hub, China is indirectly positioning itself as a critical partner in Europe’s Green Transition. This significant alignment with Europe prioritizes enhancing influences in Africa and Europe for the United States. The strategic importance of Morocco must be considered as a focal point of research. Where Morocco remains a key ally in the region for bolstering military exercises like African Lion, which simultaneously serves as a platform for the US diplomatic and economic initiatives in Africa.
However, as China deepens its economic ties with Morocco, there is growing concern in Washington about the potential erosion of US influence. In order to counterbalance China, the US needs to increase its investments in Moroccan infrastructures, technology and clean energy sectors, aligning its strategy with Morocco’s development goals. China’s stretching of its strategic footprint has broader implications for global trade and geopolitical alignment, which will likely be discussed. China’s investment in Morocco is part of its larger strategy to reshape global trade and power dynamics. By integrating Morocco into its belt and road framework, China has not only strengthened its ties with North Africa but also gained indirect access to European and Middle Eastern markets.
This interconnected strategy enables China to expand its economic and geopolitics influences far beyond Africa. However, this deepening relationship comes with risk for Morocco. One of the main challenges Morocco will be facing is an over-reliance on China’s economic vulnerability and dependence on China. Chinese loans often come with conditions that benefit Chinese companies and may limit the economic sovereignty of the recipient nations. Morocco’s alignment with China for the United States presents challenges and opportunities. While there is a risk of losing strategic influence in North Africa, there is also an opening for collaboration by focusing on complementary investments such as clean energy technology and trade facilitation.
Morocco thus entered the competition for manufacturing value chains to become the geopolitical gatekeeper of North Africa. Morocco has already overtaken Spain and is on its way to becoming a leading maritime nation in the western Mediterranean. In his interview, Dong Liu, an economist for the Chinese Academy of Social Sciences, pointed out that Morocco presents a favourable setting for labour-intensive industrial manufacturing, which could create an excellent transfer opportunity for production from China to Morocco. While it is clear that China and Morocco’s bilateral cooperation and partnership involve more than cooperation and partnership business, the partnership has strategic dimensions for the two countries involved. On the other hand, Chinese enterprises may encounter challenges firmly tied up with French industries because Chinese and French relations are rare, and any hostility between the two countries may be bad news for Chinese business ventures.
Close relations with the countries of North Africa are critical for China due to the significant investments China has made in these countries. The Belt and Road Initiative (BRI) has aimed at some key Mediterranean ports, raising alarm about possible confrontations that may endanger Western interests. Morocco is strategically placed, which has led China and the Western world to focus on this area, though China’s interoperation has adverse effects on Western dominance in Africa. This means a growing political impact through the business front, such as BRI, can bring more Chinese presence in fields like land, sea, air, and cyberspace. The Chinese threat of building or joint construction of a military base in the Maghreb region may alter the balance of naval forces in an important world region. He said that China’s increasing influence in Morocco, an important and strategic country in North Africa, may cause tension with American and European allies, affecting their interests. The Western powers must consider China’s actions in the North African region to protect its interests.
Conclusion
Xi Jinping’s visit to Morocco symbolizes pivotal bilateral relations in a landscape where international partnerships are crucial for sustained growth and influence. It underscores the significance of collaboration in today’s interconnected global economy, fostering an environment ripe for future developments that could reshape trade dynamics and geopolitical landscapes in the years to come. China’s Belt and Road Initiative (BRI), formerly the One Belt One Road (OBOR) initiative, is designed to establish comprehensive land and maritime trade routes connecting China with Europe. This ambitious project seeks to stimulate economic growth and development across the vast expanse of Eurasia, fostering closer cooperation among nations and creating new opportunities for trade and investment. Morocco plays a vital role in this vision due to its strategic geographic position at the intersection of Europe, Africa, and the Middle East. The country is a crucial link that can enhance connectivity and trade flow between these continents. By strengthening economic partnerships with Morocco, China can streamline its trade routes and expand its influence in the region. The collaboration between China and Morocco goes beyond mere trade facilitation. Both nations can create more efficient logistics networks by investing in infrastructure projects like ports, railways, and roadways. This will benefit these two countries and neighbouring regions, opening new pathways for goods and services.
Moreover, Morocco’s rich cultural heritage and growing economy provide a favourable environment for Chinese businesses seeking to invest and establish a presence in North Africa. As both countries work together, they can drive mutual growth and development, enhancing Morocco’s role as a key hub in the broader context of the Belt and Road Initiative. This partnership symbolizes a new era of symbolizes and economic collaboration, promising to unlock significant potential for both nations and contribute to the overall economic landscape of the region.
The US can strengthen its partnership with Morocco while offering an alternative to Chinese financing. Xi Jinping’s visit to Morocco clearly signals Beijing’s long-term commitment to expanding its influence in Africa and beyond. Morocco’s strategic location and economic potential also make it a valuable partner in the China Belt and Road Initiative. However, they also place it at the centre of a growing rivalry between China and the US. The outcome of this competition will shape Morocco’s future and influence the balance of power across Africa, Europe, and the Middle East. For Beijing and Washington, Morocco represents an opportunity to assert global leadership in an increasingly interconnected world.
