Faced with threats from American President-elect Donald Trump to toughen customs duties on products from China, Mexico and Canada, many Chinese companies are deciding to relocate their activities to Morocco.
Chinese companies seek to avoid trade tensions. After Donald Trump’s announcement concerning the closing of the “gaps” allowing Chinese products to penetrate the American market via Mexico, many of them, mainly those which exported to the United States via Mexico, intend to move a part of their production in Morocco. This is the case of a parts supplier for American appliance manufacturers based in Guangdong. He indicated that he was “seriously studying Morocco as an alternative production site”. “Morocco could become a key link for many companies seeking to reduce their exposure to fluctuations in trade relations between the United States and China,” estimates a Casablanca-based economic analyst with Barlamane.com.
Read: Morocco, new refuge for Chinese investments in the face of US sanctions
A rush of Chinese companies to Morocco will be beneficial for the kingdom, but also for Chinese companies. Moreover, a Moroccan company, already active in the manufacturing of automobile parts for the United States, confirmed that it was exploring the possibility of expanding its production to meet growing demand due to the international situation. Moroccan officials are already rubbing their hands. They “highlight competitive production costs and preferential trade agreements with the United States, and view this development favorably.” A bridge between Africa and Europe, Morocco has many assets (its modern infrastructure and its tax incentives) to become a strategic platform in the world of international business.
Morocco
