The economic rivalry between the U.S. and China offers Morocco real market opportunities with complex challenges, said European news platform “Modern Diplomacy”.

The North African Kingdom, a regional emerging economy strategically situated between Europe, Africa, and the Atlantic, is set to benefit from the divide, said the media outlet in its analysis on the impacts of the American-Chinese competition on Morocco’s trade and investment.

Morocco’s trade landscape is shifting from a primarily European and American focus to a dynamic role as a buffer and key player in reconfigured supply chains, said the MD report.

As Chinese labor costs rise and U.S. market access faces uncertainties, Chinese manufacturers (textiles/electronics) are considering relocating their operations to Morocco, attracted by its low-cost, multilingual workforce and duty-free access to the EU, underlined the same source, noting that the Tangier Med port, one of the busiest in the Mediterranean, is serving as a strategic hub for Chinese exporters entering Europe and West Africa.

Morocco is transforming from a passive recipient of diverted cargo into a pivotal logistics hub in the evolving Sino-Western trade environment, added the report.

Furthermore, as part of its Belt and Road Initiative (BRI), China has made significant investments in Morocco, including the development of enhanced industrial zones such as Tangier Tech City, the expansion of ports, and major energy projects that focus on both renewable and thermal energy sources.

To navigate diplomatic tension that may emerge and complex challenges, Morocco’s strategy consists of maintaining a careful balancing act, said the report of Modern Diplomacy. As a key non-NATO ally of the US, Morocco benefits from military cooperation, trade preferences, and aligned counter-terrorism efforts. At the same time, it is also expanding economic ties with China.

This dual approach involves adopting a pluralist narrative—welcoming foreign investment while supporting multilateral dialogue—and carefully managing policies, such as scrutinizing investments for security risks to protect Western partnerships.

According to MD analysis, Morocco is trying to maintain strong Western alliances while engaging with China’s growing economic influence. This requires a strategic re-evaluation of digital sovereignty, comprehensive regulatory frameworks that protect local interests without discouraging investment, advocating a balance between protectionism and openness.

The analysis suggests that Morocco’s strategic response should include flexible policies that support national sovereignty, economic stability, and inclusive development within an increasingly complex and geopolitically constrained environment.