TRADE BETWEEN CHINA AND

MOROCCO

CHADI SAKHY 201912012050020

CHINESE FOREIGN TRADE
INTERNATIONAL TRADE
SCHOOL OF BUSINESS
ZHENGZHOU UNIVERSITY
 ABSTRACT:

Sino-Moroccan relations have experienced a significant development in recent years, especially

following the visit made by HM King Mohammed VI to China in May 2016, which greatly
boosted bilateral relations. In addition to a solid legal framework of more than 230 agreements
and secular friendly relations, the two countries have a common desire to contribute to the
development of Africa and to promote bilateral and multilateral relations based on reciprocity
and which are mutually beneficial. On the economic level, trade with China, considered as the
third exporter to Morocco, has evolved considerably, since Chinese exports to the Kingdom
increased significantly in September 2016. The development of bilateral relations has also had
a positive impact on the tourism sector, since the number of Chinese tourists who have visited
Morocco has increased from 10,000 to 120,000 for three years. The cooperation between China
and Morocco will give a strong impetus to the Sino-African partnership, in the long term, taking
advantage of the geostrategic position of the country which constitutes a portal of Chinese
investments in Africa. Moreover, the adherence of the Kingdom of Morocco to the Chinese
initiative "Belt and Road" represents a renewed opportunity to broaden horizons and multiply
opportunities for cooperation and investment between the two countries in many fields.

KEYWORDS:
Cooperation; Belt and Road; investments; bilateral relations; multilateral relations; visit;
opportunity; partnership; increased; promote.
 INTRODUCTION:

The emergence of China as a key player in the economy is a trend that has been emerging for
several decades. The major reforms carried out by this country since the mid-1980s and the
adoption of a gradual outward-looking strategy, which culminated in its entry into the WTO in
2001, were decisive in enabling China to become a hub of international trade and investment.
These developments have not come without a competitive shock, sometimes brutal, especially
in sectors whose competitiveness is highly sensitive to labor costs. Like the other countries
around the Mediterranean, Morocco has not been spared from this development, in particular
in certain sectors and branches of activity in which China has an almost absolute competitive
advantage.

Since the 1990s, Morocco has made the opening of its economy a strategic axis of its trade
policy. Firmly anchored to the European Union, by far its first trading partner, the Cherifian
kingdom has multiplied trade agreements, in particular with the emerging powers. Sino-
Moroccan bilateral relations are based on the "trade and economic agreement" signed in Rabat
on March 28, 1995 and entered into force in 1999. The sustained increase in trade allows China
to be today the third supplier of Morocco. The study of the cooperation between the two states
allows us to observe the clearly asymmetrical character of the trade balance, the presence of
Moroccan products remaining very limited in China. In order to go beyond the simple
framework of bilateral cooperation, Rabat and Beijing wanted to take a new step through the
development of a strategic partnership in order to intensify trade and encourage investment.
The objective is twofold: on the one hand, to consolidate economic and commercial relations;
on the other hand, reduce the trade deficit between the two countries, notably through the
promotion of Chinese investment in Morocco and the development of cooperation in promising
areas. If the strategic partnership is designed around an economic pillar, the political and
diplomatic dimension has not been forgotten. It will be a question here of appreciating to what
extent Sino-Moroccan cooperation can evolve in the direction of mutual interest between the
two parties, while taking a critical look at their respective strengths and weaknesses.

For Beijing, Morocco is perceived both as a market, a place of investment, and a platform for
trade towards the EU by taking advantage of free trade agreements in the face of trade barriers
imposed on Chinese products. Indeed, the kingdom has a number of important assets. Firstly,
its geostrategic location makes it a real bridgehead to access the markets of the Mediterranean
basin, Europe, the Middle East and sub-Saharan Africa. For more than a decade, Morocco has
embarked on a policy of major works in order to acquire solid infrastructures meeting
international standards. The Tangier-Med port, with ultra-modern facilities, aims to position
itself as the new "hub" of the Mediterranean. It could thus become an important logistics center
for the distribution of Chinese products in Europe and Africa.
However, it is clear that beyond the considerations China's sensitivity to the interests of
developing countries development in general and Africa in particular is a positive point that
should be further strengthened in order to achieve a smooth globalization that is both fair and
inclusive. This requires more concerted action on major global trade, financial, environmental
and geopolitical issues where mutual support between China and developing countries in
international organizations is essential.
 LITERATURE REVIEW:

The future looks bright for economic relations between Morocco and China. As a reminder, on
May 16, 2016, His Excellency the King paid a visit to China, which marked the signing of
numerous strategic agreements, such as the agreement that led to the launch of
Tangier Tech strongly instructive in this regard. In addition to exercising the necessary balance
sheet, relations between Rabat and Beijing seem to have a promising future since the impetus
they have just gained comes in the favourable context of the Chinese strategy dubbed "the Belt
and the Road”.
The Kingdom of Morocco has multiplied trade agreements, in particular with the emerging
powers. Sino-Moroccan bilateral relations are based on the “trade and economic agreement”,
which boils down to reducing the trade deficit between the two countries, notably through the
promotion of Chinese investments in Morocco and the development of cooperation in
promising fields. . Basically, the Kingdom enjoys an advanced status at the regional level both
at the level of Europe and the Mediterranean as well as Africa with the establishment of
Moroccan companies in Africa in strategic sectors such as telecoms, banking, air transport or
building and public works. This positioning has made it a relay country for Europe and the
Mediterranean. This Moroccan initiative responds perfectly to the Chinese strategy, especially
in its vertical dimension through "the Belt and the Road". This is facilitated by the nature of
Sino Moroccan relationships which are taking on an unprecedented scale.
After HM King Mohammed VI's last visit to China, a strategic collaboration was initiated by a
triangular Morocco-China partnership, for the benefit of the African continent, in order to place
human capital within the development program, and to highlight, Sino-African cooperation in
the image of the Chinese development model.
Whether in public health, higher education or culturally, partnerships between Morocco and
China are multiplying rapidly. Total trade between the two countries is estimated at $ 4.4 billion
in 2018. Recently, the Citic Discatal Company specializing in the sale of aluminum rims opened
a second factory in Kenitra in November 2019 (North Africa Post, 2019). A climate Confidence
reigns between the two nations and several observers are optimistic about the expansion of their
trade in the future.
 RESEARCH CONTENTS:
ABSTRACT........................................................................................................................................................... 2

KEYWORDS......................................................................................................................................................... 2

INTRODUCTION................................................................................................................................................. 3

LITERATURE REVIEW..................................................................................................................................... 5

RESEARCH CONTENTS.................................................................................................................................... 6

I. SINO-MOROCCAN current situation: .............................................................................................. 7

The spread of "Corona" overshadows the trade exchange between Morocco and China............................... 7

The Belt and Road initiative........................................................................................................................... 8

Morocco-China: towards a deepening of the friendship of the two peoples .................................................. 9

The Casablanca-Beijing direct line, a bright spot in Sino-Moroccan relations............................................. 10

II. FORM OF TRADE .......................................................................................................................... 13
Morocco is China's gateway to Africa ......................................................................................................... 11

"Cité Mohammed VI Tanger-Tech": An attractive project for Chinese investors ....................................... 12

Confucius Institute in Morocco.................................................................................................................... 12

Mohammed VI Bridge ................................................................................................................................. 13

Visa exemption............................................................................................................................................. 13

Chinese medical mission .............................................................................................................................. 13

The Derb Omar or China Town Casablanca, a Chinese counter in Morocco............................................... 14

Morocco, 1st customer of Chinese green tea................................................................................................ 14

Morocco-China: BCP invests in the production of electric buses "made in Morocco ................................. 15

III. VOLUME OF TRADE ..................................................................................................................... 16

Chinese FDI in Morocco increased sharply ................................................................................................. 17

14% increase in tourists since 2016 ............................................................................................................. 17

Agriculture ................................................................................................................................................... 17

IV. Policy Recommendation through bilateral trade relations:.............................................................. 18

Establishment of bilateral relations .............................................................................................................. 18

Currency exchange agreement between the two countries........................................................................... 19

China to reinvigorate cooperation with Morocco......................................................................................... 19

CONCLUSION.....................................................................................................................................................21

REFERENCES.....................................................................................................................................................22
 I. SINO-MOROCCAN current situation:

The spread of "Corona" overshadows the trade exchange between Morocco and China:

Many Chinese products began to disappear from the Moroccan market due to the interruption
of commercial transactions between Morocco and China, as a result of the spread of the
"Corona" virus, which paralyzed the economic movement of this Asian country.
And China recorded a decline of 17.2 percent in its exports only during the months of January
and February compared to the same period last year, under the weight of fears about the spread
of the new Corona virus, according to Chinese customs.
The largest commercial market in Morocco, which is the "Darb Omar" in Casablanca, is
witnessing these days a great paralysis and a recession that has caused fears among merchants
and customers that the situation will remain the same for a long time; Not to mention the almost
interrupted Chinese tourism activity in Morocco due to the decline in the number of tourists
coming from this country, which is estimated annually by about 150 thousand tourists.
The first material affected by the decline in commercial transactions between Rabat and Beijing
is Morocco's share of Chinese tea exports, which amounts to about 70,000 tons annually, which
represents 25 percent of China's total exports of this substance.
Professionals also expressed their fear of registering specialization in the field of importing
Asian spices, especially with the approaching month of Ramadan, when the spice trade is
flourishing in Morocco.
It is expected that there will be a shortage of broadcasting and electronic devices that Morocco
imports from China, topping the list of Moroccan imports by more than two billion dirhams,
followed by tea and its derivatives by 1.41 billion dirhams, and the fabric by 1.32 billion
dirhams.
The economist called for Morocco to take precautionary measures to compensate for the large
absence of Chinese products sold in the Kingdom at low prices, adding that this would
exacerbate the Moroccan trade deficit with China.
China, while having to operate on its territory to fight the pandemic, spares no effort to bring
all assistance to Morocco in its fight against covid-19. Orders by Morocco of medical
equipment to China have already been delivered, in large quantities, and directly routed to
hospitals and health facilities. China intends to help face a common enemy, which chooses
neither countries nor individuals. And I very much hope that our two countries will continue to
work closely and jointly, as usual, to overcome this threat which hangs over the health and well-
being of our respective peoples, the peoples of the world.

China, today, having experienced the worst and at the cost of considerable effort and sacrifice,
is seeing its situation improve. Gradually life resumes here and there, economic activity is
restarting, certainly leaving more room to accelerate its aid to Morocco in its fight against covid-
19. When China was struck by covid-19, Morocco expressed its full compassion and support,
sending a special RAM flight with medical protective masks offered by Chinese nationals to
Morocco on board. Our country is moved and will not forget this gesture which testifies to the
particularity of the relationship which unites us in Morocco.

The Belt and Road initiative:

1. What is the Silk Road?

The title of the Silk Road is called the group of interconnected roads that were used by caravans
and ships between China and Europe, which are more than 10 thousand kilometres long. The
beginning of the road dates back to about 200 BC.
The road, which had a great impact on the prosperity of many civilizations, including the
Egyptian and Chinese civilizations, is divided into two branches, where the northern branch
passes through eastern Europe and the Crimean Peninsula to the Black Sea and reaches Venice
in Italy, while the southern branch passes through Iraq and Turkey to the white evaporation The
Mediterranean and North Africa.
The Silk Road stopped as a commercial line with the rule of the Ottomans, but China is now
trying to revive this road, through promising economic partnerships with several countries
through which this road passes, including Morocco, where the city of Tangier is a major stop
on this road, due to its strategic location and qualifications The economic and the infrastructure
that are available to it, as it has the largest cargo port in Africa, Tangier Med.
This is confirmed by the increasing investment of Chinese companies in Tangier, where Li
Biao, President of the Chinese Industrial Group “Haiti”, who will oversee the completion of the
project to establish the Mohammed VI city of Tangier Tech, stressed that this project includes
the stability of 200 Chinese companies active in the auto industry, And the aviation industry,
aircraft parts, electronic media, textiles, machinery and other industries, where the total
investment for construction in the region after ten years will reach $ 10 billion.

2. Any site for Morocco on the Silk Road?

Two years ago, the Kingdom of Morocco signed an agreement with China on the Chinese "Belt
and Road" initiative aimed at reviving the ancient Silk Road and creating its maritime trade
belt.
Both Morocco and Algeria are seeking to be the partner for North Africa in this project, which
seeks to link East and West Africa to the globe, commercially. China has long tended to invest
in Algeria because of its oil reserves, as Chinese companies have had a significant share of the
total $ 500 billion of public investment in prizes since President Abdelaziz Bouteflika came to
power. However, this fact has changed in recent years, and Morocco has emerged as an
economic partner that has attracted the attention of China, thanks to Morocco's launch of the
financial zone in Casablanca and the industrial zone in Tangier.
The infrastructure projects in Morocco have achieved a revolution in recent years, which has
enabled the Kingdom to play an important role in the Silk Line project. Tangier, which hosts
more than 200 Chinese enterprises and has one of the largest ports on the African continent, is
considered to be a main station in the Silk Line Initiative. What increases Morocco's fortunes
is the trade and economic ties that have become stronger between Rabat and Beijing, and
China's investment in the smart city of Tangier is a model of this partnership that has become
more bladder.

Morocco-China: towards a deepening of the friendship of the two peoples:

It is through cultural exchanges that people can understand each other, get closer, trust each
other and solidly build bonds of friendship and solidarity. This seems to be the aim of the "Sino-
Moroccan Year of Tourism and Culture", launched Wednesday January 15 at the Embassy of
the People's Republic of China.
The "Sino-Moroccan Year" will be organized in the two countries during the twelve months,
through very diverse events. The mutual knowledge between the two peoples constitutes the
"first foundations" of a solid construction of the relations of cooperation between the Kingdom
of Morocco and the People's Republic of China. In this regard, while capitalizing on the
achievements, the year 2020 promises to be very rich in events in Morocco and China. The
choice of culture and tourism is a wise and strategic choice. From January 16, the Chinese New
Year will be celebrated at the Chinese Cultural Center recently inaugurated in Rabat.
On February 14, 2020, a Sino-Moroccan Tourism Forum will have been organized in Skhirat,
followed by a cultural and creative exhibition of Shenzen, at the National Library of Rabat,
from February 18 to 22, on the theme "Digitization in China " A very attractive theme for young
people, but also an opportunity to demonstrate how the development of new information and
communication technologies (NICT) can be done in order to improve human well-being, while
respecting the natural environment.
In June, the “tourism week” will have been organized simultaneously in several Moroccan and
Chinese cities. October will be dedicated to the poetry of the two countries, before closing the
year 2020 with cycles of conferences. And 2021 will take over to announce continuity, starting
in Morocco with the ballet "The Song of Eternal Regret".
The mobilization of culture and art in both countries is the best way to make cooperation
processes solid and irreversible. This will be an opportunity for the Kingdom of Morocco to
make China aware of its intangible capital, particularly in its cultural dimension: crafts, music,
songs, cooking, calligraphy, etc. There are also plans to twin the city of Tétouan with a city in
China. This formula will allow Chinese and Moroccan students to live together, get to know
each other better, share and build human relationships…
By opting for this cultural dynamic, the two countries have understood the human and deep
meaning of tourism. Culture is the best cement of peoples. On this path, Morocco and China
have chosen the right direction of history that of peace and brotherhood between peoples.
The Casablanca-Beijing direct line, a bright spot in Sino-Moroccan relations:

The direct airline opened between Casablanca and Beijing is a new milestone in Sino-Moroccan
cooperation. This link comes to devote the efforts made between the two countries to
consolidate their trade not only on the tourist but also commercial level.
This first direct flight which links Morocco and China in less than 13 hours strengthens the
rapprochement between the two countries and is a promising prospect on the bilateral level.
These ambitions were strongly reiterated during the inaugural flight of the Casablanca-Beijing
service which is operational at the rate of 3 weekly frequencies.
To properly celebrate the launch of this new air route, senior Moroccan and Chinese officials
took part in the inaugural flight operated by Royal Air Maroc via the dreamliner B787-9, with
a capacity of 302 seats including 26 in business. The participants in this unique trip expressed
their expectations for this new synergy developed between Morocco and China.
Back on the highlights of the launch of this new aerial connection.

1. RAM, 1st African transporter on Chinese territory:

It’s a historic moment for Morocco and China to be linked for the first time by direct flight. The
importance of this new line which will connect Casablanca to Beijing every Monday, Thursday
and Saturday at 5 p.m. local time for a landing on Chinese territory at 11.55 a.m. local time (d
+ 1). Flights from Beijing are scheduled on Tuesday, Friday and Sunday at 1:55 p.m. for an
arrival in Casablanca at 7:55 p.m. (d + 1).
"Three frequencies per week are now offered. We hope to multiply and further develop these
frequencies in the near future and we are also in the process of negotiating to finalize
partnerships with Chinese airlines with the aim of better connecting this air route to the Chinese
domestic network, “noted Mr Addou CEO of RAM. The new airline will allow RAM to
strengthen its presence on the Asian continent, especially after direct connections with Saudi
Arabia, Lebanon, Qatar and Jordan.
By serving Beijing, Royal Air Maroc (RAM) thus becomes the first African air carrier to
operate a direct flight to the new Daxin airport which manages 720 daily flights with 45 million
passengers planned for this year. This line responds to a growing demand from economic
operators in the two countries, thus strengthening bilateral economic and commercial relations.
The latter will not only benefit Morocco and China, but also the African continent thanks to the
national airline which, through its Casablanca hub, serves 32 destinations in Africa. The
opening of this line will strengthen economic and trade relations between the two countries, as
well as human relations between the two peoples. Morocco’s geographic location as an air hub
between Africa and Europe and the Middle East makes it one of the most important tourist
destinations on the African continent.
 2. A huge boost for Moroccan tourism:

The new airline follows HM King Mohammed VI's visit to China in 2016. It meets one of the
ambitions displayed during this historic visit, which was marked by the signing of a
memorandum of understanding between the departments Moroccan and Chinese tourism as
well as the abolition of visas for Chinese nationals wishing to visit Morocco.
"This airline promotes the strategy adopted for years vis-à-vis China, in particular the decision
of HM King Mohammed VI to abolish visas for the benefit of Chinese nationals from 2016,
which has made it possible to increase the number of Chinese tourists from 14,000 to more than
148,000 tourists in the space of 3 to 4 years, "said Adil El Fakir, director general of the
Moroccan National Tourist Office (ONMT). The Office expects to have a positive impact on
Moroccan tourism as this line constitutes the first direct link with the largest tourist market in
the world, in this case China.
This represents a significant development for national tourism at the start of the year. ONMT’s
strategy gives particular importance to the Chinese market, particularly in terms of marketing
the Moroccan tourism product. This direct line will only provide more visibility to operators in
the Moroccan sector, be they or Chinese.

II. Form of trade:

Morocco is China's gateway to Africa:

China will invest nearly $ 60 billion in additional funds for Africa’s economic development.
Morocco, which is positioning itself as a hub for the continent, hopes to play a central role in
the intensification of Sino-African trade.
The Kingdom, which is positioning itself year after year as an important hub for Africa, and
which is an export platform to more than 70 countries, hopes to play a central role.
Morocco enjoys an effective presence in Africa, supported by a decisive royal implication, for
the stimulation of South-South cooperation and it is the leading investor in West Africa and the
second African investor on the continent. Moroccan banks are present in 30 African countries.
The cooperation that is taking shape between Morocco and China is quite logical in the end:
Africa needs China, which provides it with tangible solutions for its employment and
development needs and, for its part, China needs of Africa to improve its competitiveness and
access a market of more than two billion inhabitants by 2050.
Morocco, through its strategic position in Africa and its partnership with China, will naturally
contribute to the development of lasting, mutually beneficial collaboration. It is essential to go
beyond the logic of counters to develop the concept of China-Morocco co-production. Indeed,
with our mutual strengths, we can go further by focusing for example on research and
development as well as on technology transfer to allow to anchor our relationships in a virtuous
circle, creator of wealth.
A point of view shared by Li Li, Chinese ambassador to Morocco. "By working with Morocco,
we can help African countries to develop. We must strengthen our commercial partnership with
the Kingdom. Morocco is a very good market for serving Chinese companies. ”
As for BMCE Bank of Africa, it is particularly well positioned to serve as a link between the
business worlds of the two continents. The bank has launched a branch in Shanghai to play a
key role in deepening Sino-Moroccan trade and Chinese investment in Africa, and we also hope
for African investment in China. Considering BMCE Bank of Africa as a privileged partner in
Morocco and Africa, is the choice of an institution that invariably professes its sinophilic credo.

"Cité Mohammed VI Tanger-Tech": An attractive project for Chinese investors:

This is a rapprochement marked by real solidarity and turned towards the future, the “Cité
Mohammed VI Tanger-Tech” confirms the confidence enjoyed by the Moroccan economy and
its competitive capacities, and the active involvement of the regions of the Kingdom. In fact,
this megaproject reflects the will of Morocco and China to strengthen the strategic partnership.
Indeed, mobilizing an initial investment of $ 1 billion and $ 10 billion in ten years, the creation
of the new city "Cité Mohammed I Tanger-Tech" aims to inject new economic momentum
particularly in the Tangier-Tetouan region -Al Hoceima, to consecrate the socio-economic
development that Morocco is experiencing and to further strengthen the attractiveness and
competitiveness of the Kingdom on the international scene.
This project, the fruit of the efforts deployed by the Sovereign, during the visit to China, thus
consolidates the large and multiple development projects launched by HM the King in order to
strengthen the positioning of the pearl of the North in the world. International scale and to make
it a pioneering urban and economic model in Morocco and in the southern shore of the
Mediterranean. The new city, which will be erected initially on 500 hectares, and on 2,000
hectares in a period of ten years, will house many sectors of activity, in particular aeronautics,
the automobile, the food industry, renewable energies, business tourism and others. This large-
scale project, which consists overall of building an economic pole capable of generating
100,000 jobs, consolidates the dynamic already started with the launch of structuring projects,
including the Tanger Med port complex, the factory of the car manufacturer Renault, the Ligne
à high speed (LGV), the reconversion project of the Tangier city port and the Tangier free zone,
in order to improve the living environment of the local population and guarantee an integrated,
inclusive and sustainable development. Finally, this future “Cité Mohammed VI Tanger-Tech”
will be able to accommodate around 300,000 people. It will generate annual revenues of up to
$ 15 billion and tax revenues of $ 300 million.

Confucius Institute in Morocco:

Inaugurated on December 5, 2009, the Confucius Institute in Rabat was born from a partnership
between the Universities
Mohammed V-Agdal and the Beijing University of International Studies. It was created as part
of the memorandum of understanding of March 26, 2008 between China and Morocco, which
aims to encourage the learning of Chinese in Morocco, as well as to promote bilateral cultural
exchanges. After a first institute opened in Rabat, a second one opened in January 2012 in
Casablanca, the largest Moroccan city. It is the fruit of collaboration between the University of
International Studies in Shanghai and the Hassan II Aïn-Chock University. In March 2017, the
Confucius Institute within the Abdelmalek Essaâdi University was inaugurated in Tétouan. This
new structure is part of a partnership agreement signed between the Tetouan establishment and
the Normal Scientific and Technological University of Jiangxi (China). Morocco thus became
the first Arab country to have three Confucius Institutes.

Mohammed VI Bridge:

On July 7, 2016, the cable-stayed bridge over the Bouregreg wadi, a flagship project for the
Rabat bypass highway, entered into service. It is one of the longest cable-stayed bridges in
Africa with its 950 meters in length, its two pylons 200 meters high and its 30-meter wide deck.
It was designed in the shape of an arch symbolizing the new gates of the two cities of Rabat
and Salé. The first of its kind in Morocco, the structure was produced by the China Railway
Major Bridge Engineering Group. H.M. King Mohammed VI participated in the inauguration
ceremony and baptized the work "Pont Mohammed VI". The Moroccan authorities expressed
their appreciation on this occasion to the Chinese construction company for the high quality
work on this bridge.

Visa exemption:

In May 2016, HM King Mohammed VI paid an official visit to China. On this occasion, the
two countries established a strategic partnership, in addition to the signing of fifteen
conventions. One of them, signed by the two foreign ministers, relates to the visa exemption
for certain categories and the reciprocal simplification of the procedures for issuing certain
categories of visas. On June 1, 2016, the Moroccan Ministry of Foreign Affairs announced the
visa waiver for Chinese citizens. Chinese passport holders can now stay in Morocco for a period
of less than 90 days. The visa exemption is considered by the National Tourist Office of
Morocco as a generator for the tourist market, some 100,000 Chinese tourists having visited
Morocco in 2017, more than double compared to 2016.

Chinese medical mission:

In Morocco, health is one of the main sectors of Sino-African cooperation. Since 1975, more
than 1,700 Chinese volunteer doctors have paraded in Moroccan public hospitals, and more
particularly in the most remote regions. The 170th Chinese medical mission, made up of 25
practitioners, began its stay in three Moroccan cities at the end of 2017: Settat, Benguerer and
Meknes. In total, around 80 Chinese volunteer doctors are currently practicing in eight
Moroccan cities, namely Agadir, Benguerer, Chefchaouen, Errachidia, Meknes, Mohammedia,
Settat and Taza. Morocco is thus one of the most important destinations for Chinese medical
missions. Chinese medical specialists generally work in Morocco for two years to offer their
services to the population. ” Chinese health volunteering is spreading to many countries. Since
1963, around 20,000 Chinese doctors have been dispatched to 51 African countries, including
Morocco.

The Derb Omar or China Town Casablanca, a Chinese counter in Morocco:

Located in the heart of Casablanca, the Derb Omar is an emblematic place for the wholesale
trade in fabrics and household equipment. You have to go there during the day and observe the
place occupied by the carriers to truly appreciate the importance of this commercial centrality,
the ramifications of which extend to the whole country. The Derb Omar owes its fame to the
waves of traders from Fez and southern Morocco who settled there during the 20th century,
marking their activities in the district and giving it its market identity.
From the 2000s, Fassis (originally from the Moroccan town of Fez) and Chleuhs (Berbers from
southern Morocco) were joined by another group of traders, the Chinese. The first arrivals do
not come directly from China but from Sub-Saharan Africa. Faced with increased competition
between Chinese traders in a saturated regional market, some of them are looking for new
outlets to sell their goods and are making Casablanca a new stage in their migratory enterprise.
Their installation then offers opportunities to aspiring migrants and promotes the establishment
of migration networks between China and Morocco.
Chinese activities are almost exclusively located around Place de la Victoire. Among the
hundreds of businesses identified, a majority are located inside the two Chinese kissarias
(shopping malls), symbol of their roots and their adaptation in the neighborhood. These are
mainly small family businesses positioned in the wholesale and semi-wholesale of goods
imported from China of products such as linens, shoes or leather goods, an offer that does not
compete direct with that proposed by the Moroccan traders of Derb Omar. Little effort has been
made to promote the activities or the goods offered and the signs of a "sinisation" of the district
appear relatively limited, contrasting with the image conveyed in society and by the media on
their presence. Be that as it may, the Derb Omar, whose name is today associated with the
Chinese district of Casablanca, plays a major role in the globalization of trade in Morocco as a
transnational trading place where goods and henceforth merchants circulate from China.

Morocco, 1st customer of Chinese green tea:

Morocco is undoubtedly the first customer and consumer worldwide of Chinese green tea, with
an import volume having reached, during the first eight months of the current year, 38.5
thousand tonnes (94.2 millions of dollars), according to figures provided by the Chinese
Ministry of Commerce.
With the exception of China, the Kingdom is considered to be also the world's largest consumer
of green tea, followed by Uzbekistan, Japan, Russia and the United States. In 2008, Moroccan
imports of Chinese green tea totalled $ 96.1 million, or 4.16 pc of total imports from the
Kingdom of China. Morocco imports from the province of Chiang, in the east of the country,
nearly 30 pc of its production of green tea.

1. Morocco, an important market for Chinese tea:

Morocco has always been a very important market for the marketing of Chinese green tea
produced by this region, which fits perfectly with the taste of Moroccans. Starting from one
dollar per kilogram, tea prices, which vary according to quality, can range up to 600 dollars per
kilogram.

2. Compliance with quality criteria:

In July 2000, the European Union (EU) had applied criteria and standards for the rigorous
control of fertilizers and fertilizers with regard to the cultivation of tea that the Union imports,
a decision that Morocco had expressed in 2004 his wish to align with it.
China has set up a quality control system for green tea crops. This control ensures that the
materials and fertilizers used do little harm to the health of the consumer, just as it aims to
guarantee the rational use of fertilizers and other fertilizers.
China has banned the use of more than 20 kinds of insecticides since 2001 and annually updates
the list of authorized insecticides.

3. Tea culture:

In countries with a warm climate, green tea is more popular with consumers, while in those
with a cold climate, the preference tends towards red tea, and consumption habits differ from
one region to another.
If Moroccans often drink mint tea or sometimes mixed with other aromatic plants, the Chinese
prefer it very light and without sugar. They can take it several times a day. But beyond the
culture of consuming tea, it is characterized by its multiple health benefits, already proven,
which help prevent several diseases.
In 2008, the area cultivated with tea in China reached 1.6 million ha (1st worldwide) with a
production of 1.24 million tonnes, or one third of world production. As for exports, they reached
during the same year 297,000 tonnes with Kenya in position followed by Sri Lanka and China.

Morocco-China: BCP invests 1.2 mmdh in the production of electric buses "made in Morocco":

On the occasion of the royal visit to China, the People's Central Bank signed an important
partnership agreement with the Chinese industrialist Yangtse Ltd. and the Energy Investment
Company (SIE), for an amount of 1.2 billion dirhams. This agreement is intended to finance an
industrial unit producing the latest generation electric buses in Morocco.
Through this agreement, the BCP Group aims to promote "made in Morocco" on the one hand,
and trade between Morocco and China on the other.
In addition to this agreement, BCP and its partner ICBC [Industrial and Commercial Bank of
China], the leading Chinese and global bank, have agreed to broaden their cooperation to
finance Chinese investment projects in Morocco and sub-Saharan Africa. This agreement made
it possible in particular to carry out the first payment transactions denominated in Chinese
currency, the Renminbi (RMB) for companies operating with China.
As a reminder, the BCP and ICBC had already concluded an agreement in this direction, during
the Morocco-China economic forum which was held in November 2014 in Beijing. The
agreements signed on this occasion concern two other Chinese partners, namely Huawei, the
benchmark NTI operator, and Bonna, a global tea supplier, for a total amount of 225 million
USD.

III. The volume of trade:

Economic and trade relations between China and Morocco took a turning point in November
2014, during the Morocco-China Economic Forum. However, the visit of HM the King, on May
11 and 12, 2016, acted as a rapprochement. About fifteen cooperation contracts and investment
agreements totalling more than 110 million euros have been signed. China is Morocco's third
largest import trading partner. In 2016, the export volume to Morocco was 3.08 billion USD,
an increase of 6.2% compared to 2015. While the import from Morocco is 0, $ 55 billion, an
increase of 4.6% over the previous year. Overall, 15 contracts have been signed between the
two parties, including a currency swap agreement between the central banks of the two
countries, a memorandum of understanding on the exemption of certain categories of visa,
another for strengthening cooperation in the infrastructure construction sector, as well as a
program for implementing the cultural cooperation agreement (2016-2020). Finally, in the field
of renewable energies, the Sino-German group Linuo Paradigma, specialized in the
manufacture of solar water heaters, will create an industrial production unit with the energy
investment company. Harpon Solar, a Chinese company specializing in the production of solar
cells and panels, announced the creation in Morocco of a photovoltaic cell production unit. As
for Yangtse Ltd., a Chinese bus construction company, it will build an industrial unit for
manufacturing electric buses in Morocco.

Chinese FDI in Morocco increased sharply:

In 2017, Morocco received 90 million dollars in FDI from China, double that of 2015. Several
Chinese companies have announced investments in Morocco, in particular automotive
equipment manufacturers (Citic Dicastal, a manufacturer of aluminum rims and Nexteer
Automotive, an equipment manufacturer specializing in steering systems). BYD, a Chinese
manufacturer of electric equipment and vehicles, is also slated to build a factory near Tangier.
Also, the number of Chinese tourists has multiplied by six in just two years since the entry into
force of the visa exemption in June 2016. The growth should continue: the Ministry of Tourism,
Air Transport, Handicrafts and the Social Economy forecasts 500,000 Chinese tourists per year
by 2020, compared to 120,000 in 2017. The expected launch of a direct air link between China
and Morocco by the end of the year and the organization of cultural events between the two
countries foreshadows growing bilateral relations.

14% increase in tourists since 2016:

Since King Mohammed VI’s visit to China, the two countries have established a strategic
partnership and a lot of economic progress. The visit was crowned with visa waiver for Chinese
citizens. Result: the number of Chinese tourists increased by 14% between 2016 and 2019,
reports this Friday morning.
"The cooperative relations between the two countries have already developed significantly and
we have a promising future," said Li Li, Chinese ambassador to Morocco, at a press conference.
"We must consolidate cultural exchanges with tourism by instilling a culture among the Chinese
and Moroccans," he added.
Morocco is full of hope for this year 2020. Especially since the Chinese market is full of
opportunities, and has a population approaching a billion and a half inhabitants.

Agriculture:

Agriculture could be another way of reducing the trade imbalance between Morocco and China.
In 2017, Morocco exported $ 2 billion in agricultural products, but only 0.2% of this value was
exported to the Chinese market. An analysis could be made to determine which Moroccan
agricultural exports could be adapted to the Chinese market and which practical measures (for
example, dedicated trade fairs, phytosanitary rules) could be adopted to encourage Moroccan
agricultural exports to China. This could help give Sino-Moroccan relations a more balanced
and lasting foundation.

Morocco-China: growing cooperation:

Whether in public health, higher education or culturally, partnerships between Morocco and
China are multiplying rapidly. Total trade between the two countries is estimated at $ 4.4 billion
in 2018. Recently, the Citic Discatal Company specializing in the sale of aluminum rims opened
a second factory in Kenitra in November 2019. A climate Confidence reigns between the two
nations and several observers are optimistic about the expansion of their trade in the future.
Moroccan-Chinese relations are going well. The trade figure between the two countries is
growing continuously. The latest statistics show an amount of $ 4.4 billion in 2018. An
astronomical figure which is the pride of the Chinese ambassador to Morocco: "Never has
relations been so good. They are characterized by increased mutual political trust and a better
understanding of international and regional affairs in all areas, "said Li Li in an interview with
Jeune Afrique.
In figures, Moroccan-Chinese relations confirm this growth. More than 200,000 Chinese
tourists visited Morocco in 2018. Morocco's removal of the visa for Chinese citizens has
boosted tourist arrivals. In addition, Citic Discatal, a company specializing in the casting and
production of aluminum automotive parts, opened a second factory in Kenitra on November
25. The overall investment for this project is estimated at 350 million euros. In addition, a city
dedicated to training in new information and communication technologies, financed by Chinese
funds, will soon be created near Tangier.
This set of projects makes China a strategic partner for the kingdom. Especially since the
Chinese market is full of opportunities. With a population of 1.4 billion (40 times the population
of Morocco), it is the most populous country in the world.

IV. Policy Recommendation through bilateral trade relations:

Establishment of bilateral relations:

On November 1, 1958, Morocco established diplomatic relations with China, becoming the
second African country to do so with the People's Republic of China. Chinese Prime Minister
Zhou Enlai's 1963 official visit to Morocco was successful and helped promote the widening
and development of Sino-Moroccan relations. Like cooperative relations in other fields,
bilateral cultural exchanges have experienced rapid development. In 1964, the Chinese
government sent 30 students to Morocco for the first time, an important cultural event following
Zhou Enlai's visit to Morocco. Mr. Zhou's tour of 14 Asian and African countries in 1963
created the conditions for the development of Chinese diplomacy, making the training of a large
number of professionals with knowledge of foreign languages an urgent priority.

Currency exchange agreement between the two countries:

Mohammed VI’s visit to Beijing was therefore intended to give a boost to Sino-Moroccan
relations, with one specificity, however: the importance of the banking sector.
The major establishments in the kingdom dominate the banking scene in the French-speaking
area. Symbolically, the visit began with the signing of a currency exchange agreement between
the two countries. The objective is to provide banks with liquidity in yuan for the accounts of
their customers and thus to fluid Chinese investments in Morocco and in the north of the
continent.
Bank of China, one of the four large state-owned commercial banks, opened its first
representative office in Morocco in March. As for Attijariwafa Bank, it is also multiplying
initiatives in order to appear as the essential local partner to support businesses and investors
between China and French-speaking Africa.

China to reinvigorate cooperation with Morocco:

China has expressed its country's desire to reinvigorate its economic and technological
cooperation with Morocco. During working visit interviews in Morocco at the head of a large
delegation, bilateral relations have experienced a qualitative leap and an exceptional
development since the visit of HM King Mohammed VI to China.
Since the abolition by Morocco of the visa for Chinese citizens, the number of tourists from
this country to the Kingdom has increased exceptionally, reaching 200,000 in 2018, noting that
Morocco is among the first countries in Africa to sign the “Belt and Road” initiative aimed at
reinvigorating the old Silk Road and creating its marine commercial belt. The support of his
country to the United Nations and to the efforts of the Kingdom of Morocco in favour of
development and stability in the region, calling for more coordination between the two
legislative institutions in international forums, especially at Union level inter-parliamentary.
The importance of parliamentary diplomacy in promoting relations between the two countries
and their common interests are at the head of the proposals for the working visit. A greeting on
the distinguished historical relations uniting the two countries since the establishment of their
diplomatic relations, which developed significantly, after the visit of the Sovereign to China in
2016, during which the two countries agreed to raise their bilateral relations at a
multidimensional strategic partnership level.
During the visit, 32 cooperation agreements were signed in vital areas such as the economy,
energy, tourism, culture, infrastructure and the judiciary. Likewise, the Chinese development
model, based on discipline, seriousness, patriotism and openness to the world, encourages
Morocco which is in the phase of implementing a new development model and China
constitutes a rich experience in this area and a global economic and technological force. In the
same context, the convergence of points of view between the two countries on a large number
of international questions and on their common will to align themselves with the principles of
the United Nations based on respect for the unity of peoples and states, in order to guarantee
security and stability.
During this visit, in which the Chinese Ambassador took part in Rabat, they also underlined the
commitment of the House of Representatives to strengthen relations between Morocco and
China in different fields, deeming it necessary to consolidate the cooperation between the two
legislative institutions. They pleaded for more dynamism of the action of the two parliamentary
friendship groups and for the institutionalization of relations between the two legislative
institutions, through the signing of a memorandum of understanding which “will contribute to
strengthening the ties of 'friendship between the two peoples and to open new horizons of
cooperation between the two countries'.
The Vice-President of the National People's Assembly of the People's Republic of China also
met with the head of the Moroccan government, Saad Dine El Otmani. This meeting, which
took place in the presence in particular of the Chinese ambassador in Rabat, was devoted to
examining the means of consolidating the Morocco-China partnership and to exchanging views
on questions of common interest , said a statement from the Department of the Head of
Government.
On this occasion, the two sides welcomed the dynamic that relations between the two countries
are experiencing in all areas, especially after the official visit made by HM King Mohammed
VI in 2016 to the People's Republic of China, which was marked by the signature of the joint
declaration on the establishment of a strategic partnership as well as other cooperation
agreements in different sectors.
In this context, the two officials expressed the determination of the two countries, whose
diplomatic relations date back more than 60 years, to strengthen good political coordination and
to implement the various Sino-Moroccan cooperation conventions with a view to contribute to
the sharing of experiences. They expressed in this sense the determination of his country to
strengthen its relations with Morocco, an important partner in the Sino-African Cooperation
Forum, recalling that the Kingdom is the first African country to exempt Chinese citizens from
visas and the only Arab country hosting three Confucius Institutes (Chinese cultural centers).
Political stability and dynamics economic development of the Kingdom make it a model in
Africa and encourage more Chinese companies wishing to invest in different fields in Morocco.
On the side of the Kingdom, Morocco's particular interest in cooperation with China, given its
economic leadership and the role it plays on the international scene, noting that "moderation,
non-interference in internal affairs and the attachment to the unity and sovereignty of States are
common principles which guide the foreign policy of the two countries”. Morocco also
expresses its gratitude for the clear position of China supporting its territorial integrity and
reviews the assets at its disposal, in particular its geographic positioning, its economic
dynamism and the reforms it has launched, noting that Morocco has become an investment hub
and a gateway to the countries of the African continent, particularly those of West Africa, the
Arab world, the European Union and other countries that have signed free trade agreements
with the Kingdom.
 CONCLUSION:
In recent years, Sino-Moroccan trade has grown so rapidly and so continuously that, now,
China, a friendly country, occupies, at all levels, a prominent position among the main
economic partners of the Kingdom.
Relations between China and Morocco are experiencing a new dynamic in several fields,
whether political, economic or cultural. The two countries seem complementary on several
points For China, Morocco represents a privileged destination thanks to its geostrategic
positioning, by making a platform for investments, exports and offshoring activities. Indeed,
Morocco allows Chinese investors to have preferential access to the markets of 55 countries,
with which Morocco has concluded free trade agreements (in particular the countries of the EU,
the United States and the Arab countries). The development of transport, with the possible
opening of a direct air link between the two countries, is a key element in the promotion of
economic and commercial relations. The Chinese market, always in search of new products, is
open to Moroccan businessmen who are called upon to accelerate the pace of their exports and
to diversify their products intended for the Asian giant. The increase in exports of certain
flagship Moroccan products, such as phosphate, its derivatives and fishery products, is likely to
rebalance the trade balance between the two countries, say economic analysts the two countries
intend to strengthen their economic relations with the ambition of establishing a win-win
partnership, and broadening the horizon of their cooperation by opening up more to regional
markets in promising sectors, such as energy and new technologies. In addition, as part of the
Cultural Accord Executive Program, the two governments are exchanging scholarships for the
benefit of Chinese and Moroccan students. China also organizes an annual training program for
Moroccan executives. In short, exchanges between the two peoples are developing vigorously,
which constitutes an important pillar of bilateral relations, and considerably promotes the
development of Sino-Moroccan relations. Currently, there are three Confucius Institutes in
Morocco (in Rabat, Casablanca and Tétouan). The Chinese Embassy in Morocco plans to open
more in other Moroccan cities. Mandarin lessons are also provided by some private schools in
Morocco. Chinese nationals are established in Morocco. They work in particular in the fields
of telecommunications and infrastructure (highways, bridges, etc.). In Casablanca, there are
some 500 Chinese traders. Over the years, they have made their way to Derb Omar, the large
commercial district of the economic capital of Morocco. They employ many young Moroccans,
whose role is to inform local customers about the prices, quality and usefulness of the items
offered. In terms of health, more than 1,600 Chinese medical executives have taken turns in
various Moroccan hospitals since 1975, when the first memorandum of understanding was
signed relating to the sending to Morocco of Chinese medical missions. Some 80 Chinese
doctors from Shanghai - specializing in gynecology, trauma, burns, internal medicine, surgery,
pediatrics, ophthalmology and traditional Chinese medicine - work in hospitals spread over
eight Moroccan provinces.
China is keen to share its experience and success in terms of economic growth with Morocco.
It needs an open, inclusive and shared cooperation platform that brings together the different
parties to tackle global challenges together, China and Morocco have major assets and great
potentials capable of contributing to the revival of the economic and cultural dynamics across
the African continent.
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