Zero Tariffs, a Tech City, and $3.5 Billion in Planned Investment: China-Morocco Trade Moves Beyond Commodities

HIGHLIGHTS

The first major overseas event under China's newly implemented zero-tariff regime for Africa opens in Casablanca on Tuesday, as the China-Africa Economic and Trade Expo (CAETE) holds its Morocco session — a signal that Beijing is selecting specific African economies for deeper industrial integration rather than treating the continent as an undifferentiated trade bloc.

The numbers underpinning the relationship are moving. Bilateral trade between China and Morocco hit $10.96 billion in 2025, rising from $9.04 billion in 2024. China's exports accounted for $9.88 billion of that total, while Moroccan exports to China reached $1.08 billion. China has been Morocco's third-largest trading partner globally and its largest in Asia for several consecutive years.

The zero-tariff policy, which removes duties on goods from all 53 African countries with which China maintains diplomatic relations, is expected to tilt the import mix. Jawad Kerdoudi, president of the Moroccan Institute of International Relations, called it a "mutually beneficial strategic move" that would help reduce Africa's trade deficit with China. Nasser Bouchiba, president of the Africa China Cooperation Association for Development, said the policy would enable premium Moroccan products — argan oil, essential oils, and other branded goods — to gain easier access to China's consumer market.

Tangier Tech City: the industrial anchor

The commercial substance of the relationship is increasingly located in northern Morocco. The Mohammed VI Tangier Tech City, a industrial zone developed with Chinese participation, had signed 42 enterprises by March 2026, of which 34 are Chinese firms. Planned investment totals roughly $3.5 billion. The anchor tenant is BTR New Material Group, a Chinese lithium battery materials producer, which is constructing cathode and anode production facilities at the park and is expected to create more than 1,100 skilled jobs once operational.

The project captures the logic of the broader economic corridor. Morocco holds the world's largest phosphate reserves and has significant cobalt and lithium deposits. Chinese firms bring processing technology and capital. The output — battery-grade materials — is destined in part for European electric vehicle supply chains, which Morocco accesses through its free trade agreement with the EU and its geographic position across the Strait of Gibraltar. The model links Moroccan resources, Chinese midstream processing, and European end-markets.

Infrastructure, finance, and green projects

Chinese heavy equipment manufacturer Zoomlion has placed machinery on Moroccan infrastructure sites, including venues being built for the 2030 FIFA World Cup. Agricultural Bank of China's Hunan branch is expanding cross-border financial services for Chinese firms operating in Morocco.

Moroccan mining and energy group Managem is developing a battery-grade cobalt sulfate project in Marrakech and a seawater desalination facility in Nador. Managem president Imad Toumi described the projects as combining "economic development with environmental protection."

The CAETE Morocco session runs June 10–12 and is jointly organized by the CAETE secretariat and Morocco's Ministry of Industry and Trade. Hunan province, which has positioned itself as a hub for Africa-facing trade, is using the event to promote Moroccan specialty goods through its "African Products" brand system. During China's May Day holiday, an African products fair in the provincial capital Changsha drew nearly 100,000 visitors over six days.

The year 2026 marks the 10th anniversary of the China-Morocco strategic partnership. Xiao Hao, executive dean of the Institute of African Studies at Hunan University, said the relationship is "steadily advancing toward higher-quality and more sustainable development." The Casablanca event will test whether the zero-tariff framework and the industrial projects already underway can convert policy access into measurable trade and investment flows.