PREVIEW
With US$6 billion of Chinese EV investment embedded in North Africa's most EU-friendly economy, Brussels faces an uncomfortable choice
EU officials are getting increasingly edgy about China using multi-billion dollar investments in electric vehicle production in Africa to circumvent their tariffs on Chinese EVs. Brussels imposed extra tariffs of 17%-37% on Chinese electric vehicles in October 2024 after accusing Beijing of unfairly subsidising their manufacturers. But imports of Chinese EVs to the EU still increased by 26% in 2025.
Morocco is the EU’s main ally in North Africa and both Brussels and Rabat are keen build closer trade links. But Morocco has also been the recipient of US$6 billion in Chinese investment in EV production, with Industry Minister, Ryad Mezzour, stating that this will drive a target of 60% of the kingdom’s vehicle-production capacity being electric by 2030 (AC Vol 67 No 2, Africa’s electric vehicles speed up & Vol 66 No 19, How Trump’s tariffs help Beijing in Africa).
Chinese carmaker BYD – now the world’s leading EV producer – launched its Seal U DMi model in Casablanca in 2024 and Morocco last year took over South Africa’s place as Africa’s leading car maker.
EU Trade Commissioner Maros Sefcovic has warned that Morocco’s contribution to Chinese industrial over supply is a ‘big, big issue’ for the bloc’s economy. Sefcovic’s department has drawn up plans for an ‘overcapacity instrument’ that would cap imports of Chinese products across a range of sectors and is hoping for approval from European leaders at G7 and European Council summits in mid-June.
Sefcovic will then host China’s Commerce Minister Wang Wentao on 29-30 June and demanded ‘concrete outcomes’ following talks with Chinese trade envoy Li Chenggang on the margins of an Organisation for Economic Co-operation and Development meeting in Paris on 4 June.
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