China has surpassed the US as one of Morocco's preferred partners in global value chains.

Morocco's value-added trade exchanges with China have also recorded the fastest growth in the world since 1998. Specifically, in ten of the first twenty sectors of the Alhuite kingdom, a 50%. Fundamentally raw materials, yes, but also other more sophisticated sectors such as textiles (+2.939%) or health services (+2.509%). The US, with an evident decline in Moroccan industry (from 2,22% to 1,79%), has increased its military activity. Moroccan social security services to the US have increased by +9.133%. And this, together with the aforementioned industrial decline, reveals increasing activity by US military personnel in Morocco. Rabat, it should be remembered, is the first US military ally outside of NATO.

…AND THE US RESPONSE: MOROCCO ALWAYS WINS

China, by strengthening its commercial ties in value chains with other countries, has provoked an immediate response from the US. The United States International Development Financial Corporation has quintupled its financial assistance to Latin America since 2014, after having surpassed the EU as the world's leading destination for Chinese investments. And the second region where this type of US financial assistance has increased the most, especially during Trump's mandate, is Africa. USDFC conditions all its loans on a commitment to reduce trade ties with China. Morocco, however, is obtaining a return derived from said strategic competition between China and the United States. Morocco officially joined the Chinese trade initiative, Belt and Road, in 2017.

Chinese investments in Morocco total about 1.2 billion dollars since 2014. And, coinciding with China's advance in the region, the US has closed a military cooperation agreement with Morocco until 2030. This two-way policy, in terms of military development and industrial, is optimal for Morocco. To Asian markets, through Singapore, Morocco continues to export agricultural goods and phosphates. But, with the Chinese as the world's third largest source of foreign added value incorporated into its total exports, Morocco has also significantly developed its industry. It has done so by attracting Chinese firms in the manufacturing sector in search of effective integration into EU value chains. And also through the growing contribution of France, Spain, China or Italy to the added value of their transport logistics industry. But China's advance in Morocco, among other factors, also encourages military relations from the US.

Source: DirigentesDigital