The world is undergoing a unique transformation, and the tide of economic globalization that once swept the world seems to be receding.

Anti-globalization is spreading, and the rise of protectionism is leading to the dispersal of industries that had been aggregated by globalization. Regional industrial agglomerations are emerging around the world to serve their own regions.

Morocco is one such example, and although it is located in Africa, it has become the fifth largest source of car imports to Europe, the previous one being China.

As an African country, this is no easy feat. So why Morocco and not others?

One only has to look deeper into Morocco to realize that this is not a coincidence, but a foregone conclusion.

1. A favorable geographic and trade environment

Morocco is located in the northwest corner of Africa, across the sea from Spain, the narrowest part of the strait is only 14 kilometers wide, making it the closest country in Africa to Europe.

From Tangier, Morocco's largest container port, cargo can reach Europe in just one to two days and North America in as little as 10 days.

Ten years ago, Morocco signed a free trade agreement with the European Union. This means that goods produced in the country have unimpeded access to the markets of the EU countries.

2. Perfect industrial chain and industrial platform

Morocco's automotive industry dates back to the 1960s, when the country's first automotive assembly line was established.

To date, Morocco has built a relatively complete supply chain network of the automotive industry, the localization level of vehicle production up to 65%.

Twelve Integrated Industrial Platforms (IIPs) spread throughout Morocco provide a package of support to the automotive industry, from policy to funding, providing synergistic support for the replication and development of the entire automotive chain.

Internationally renowned auto parts manufacturers are actively increasing their investments in Morocco. In addition, including CITIC Dicastal, Nanjing Aotearoa, Nanjing Xiezhong, Chongqing Ruige and China Aviation Automotive Industry Holdings Limited's Neste, including five Chinese auto parts manufacturers have also invested in Morocco's Guenitra Free Trade Zone to build factories, accelerating the development of Morocco's automotive industry.

3. Abundant human resources

Morocco has a relatively young demographic structure, with a young labor force aged 20 to 45 accounting for one third of the total population.

Every year, as many as 150,000 university graduates and professionally trained workers enter the labor market.

However, Morocco's pay levels are relatively low, with the social minimum monthly salary at only 264.3 euros (about 1,824 yuan), equivalent to less than a quarter of that of neighboring Spain.

4. Convenient transportation and perfect logistics

Morocco has made remarkable progress in the areas of transportation and logistics.

At the end of 2018, Africa's first high-speed railroad, the San Pegasus, which connects the important cities of Casablanca and Tangier, went into operation. With a maximum test speed of 357 kilometers per hour, this high-speed train is riding on the reputation of high-speed rail.

In addition to high-speed rail, Morocco has large deep-water ports of excellent quality, such as the container port of Tangier and the port of Casablanca, which provide reliable maritime transportation for export trade.

In addition, a network of 1,800 kilometers of highways connects the industrial cities of northern Morocco, providing efficient and easy access for the movement of goods within the region.

5. Stable policy and financial support

After a period of sustained stability since its independence in 1956, Morocco's political environment has created favorable conditions for the automotive industry to flourish.

Since 2015, the establishment of the Industrial Development Fund (FDI) with an annual scale of up to Dh20 billion (about Rs13.2 billion) has provided continuous financial support to foreign investors, and this support measure has maintained a steady on-the-ground effect for seven consecutive years.

With the support of the Hassan II Development Fund (Hassan Ⅱ Fund), which focuses on automotive and other industries, companies that land on the ground not only enjoy subsidies of up to Dhs30 million (about Rs19.8 million) for fixed assets, but also receive long-term sustainable support in their development.

China has already achieved a world-leading position in the field of new energy vehicles, both in terms of the penetration rate of the domestic new energy vehicle market, as well as the production technology of domestic vehicle manufacturers and the supply chain, which have reached or surpassed the European and American levels. With the internationalization of China's automotive industry, it has become imperative to enter the international market.

However, the current global situation is different from that at the beginning of the twenty-first century, with China facing an increasingly complex foreign trade environment. The once global trade cycle of Made in China may be gradually receding from the stage of history, while regional economic cycles are replacing the trend of globalization and will gradually change the global industrial landscape.

Against this background, Morocco stands out as a piece of unexplored treasure land for China's industrial layout. Morocco for China's future development of the automotive industry in the European market provides an extremely favorable foundation, which also echoes the strategic layout of China's automotive industry.