Report: Morocco could be a battleground in a forthcoming great-power trade war

“Morocco offers a bridge to Western markets for Chinese makers of electric vehicles,” argued a recent report from UK-based think tank Chatham House, adding that “President XI’s flying visit is a sign of the importance China attaches to safeguarding its domination of the electric-vehicle industry as it prepares for the return to office of US President Donald Trump.”

It emphasized that “it could also signal the emergence of the North African country as a battleground in a forthcoming great-power trade war,” noting, “that could create considerable challenges, but if it manages to protect its interest and come out unscathed, it may provide a playbook for other countries in the Global South to follow.”

The report explained that Morocco is right in the middle of the new global trade game. With the US and China in a trade war that could get even worse because of Trump’s tariffs and protectionist measures, Morocco’s position is really interesting.

It noted that many companies in Western and Western-friendly countries bypass US and EU de-risking policies by “partnering with Chinese firms abroad or relocating supply chains to third-party countries to avoid missing out on doing business with the Chinese.”

“In Morocco, businesses from Canada, Australia and South Korea have secured deals with Chinese companies to build EV battery plants and produce chemicals needed for battery manufacturing. Other cooperation includes car assembly and components,” according to the report.

For this reason, it argued that “for Morocco, this is a great opportunity for China to help it transform into an industrial hub and a global trade center straddling major markets in the West and Africa.

The same source mentioned that “this enables the kingdom to hedge as it tries to break away from France’s influence and pursue a more independent foreign policy.” It also seeks China’s support against Algeria over Western Sahara, though Beijing’s regional balancing strategy makes this unrealistic.

It added that Morocco seeks to balance its ties with China through a bilateral, transactional approach while avoiding China-led initiatives, such as BRICS, to prevent Western irritation, given that “90% of Moroccan car exports are sold in the European market.”

The post Report: Morocco could be a battleground in a forthcoming great-power trade war appeared first on HESPRESS English – Morocco News.

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