Huawei Technologies Co., Ltd., the prominent Chinese technology company, has declared its entry into the automotive sector with plans to invest in Morocco together with another Chinese firm, Wan’an Technology, as reported by Chinese media outlets.
This partnership aims at manufacturing and distributing automobile components, backed by an investment totaling €30 million, to establish a production facility in Morocco. It represents a significant move toward enhancing China’s presence in the automotive industry within this kingdom.
Huawei, recognized for its work in IT infrastructure and smart devices, plans to contribute 19.5 million euros (approximately 65% of the shares). In comparison, Wan’an Technology will provide an investment of 10.5 million euros (roughly 35%).
Wan’an focuses on producing and developing automotive braking systems and boasts a significant legacy within China’s automobile sector. The company possesses an auto manufacturing facility and entirely owns approximately eight firms, as well as having stakes in thirteen additional subsidiaries and partnerships.
The objective of this initiative is to enhance the competitive edge of Chinese automotive components producers in the North African and European marketplaces.
The same source highlighted that Huawei’s investment is integral to its plan for enhancing its worldwide footprint and boosting the competitive edge of its overseas activities.
Following the imposition of tariffs by the European Union on imported Moroccan aluminum alloy wheels, this development has occurred. The EU’s action is linked to financial assistance provided by China to one of Morocco’s export-producing companies as part of the Belt and Road Initiative.
The European Commission stated that it had been demonstrated that these imports, which were unfairly subsidized, damaged the European industry producing the same goods.
Nader Rong, a Chinese economist and reporter, stated that “the continuous trade conflict between China and the U.S., coupled with numerous tariffs placed on Chinese goods being shipped to Europe and America, has positioned Morocco as a key hub for various Chinese firms, particularly from the automobile industry, aiming to distribute their items within the Moroccan market.”
He thinks that “Morocco has turned into a center for Chinese automotive investments because of the reciprocal advantages it offers both nations.”
Rong stated that “Products made in China do not face Western tariffs in Morocco, making it an attractive destination for investment from the People’s Republic of China in this industry.”
He highlighted that “Morocco’s extensive expertise in automobile manufacturing, particularly with electric vehicles, along with its abundant reserves of raw materials like metals needed for batteries, makes it a compelling location for investments.”
The Moroccan economist Mehdi Fakir points out that Huawei, similar to other Chinese firms, shifted nearer to their targeted market regions with the aim of decreasing both manufacturing and transportation expenses.
Although tax and customs considerations might have played a role in choosing to invest in Morocco over Europe, the country’s enhanced infrastructure, more favorable business environment, and reduced production expenses—particularly in terms of labor and energy—were significant advantages.
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Huawei plans to invest €30 million in Morocco’s automobile sector.
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