There is nothing that frightens the West more than the idea of a Chinese Century. An era where China becomes a superpower, either on par with the European Union (EU) and the United States or perhaps even outshining them to be the undisputed centre of power.
The EU knows that its reliance on Chinese factories will cost it in the long run. So, as a part of its “Derisking” strategy, European manufacturers are taking their business closer to home.
Since labour costs are too high in Europe due to labour laws and human rights safeguards, manufacturers are looking for poorer nations with cheap labour in the EU’s geographic proximity. “Nearshore” countries like Morocco and Tunisia are perfect candidates because they are just across a narrow sea, which cuts down the logistics costs, and labour is also cheap.
African Dominance
Morocco has already surpassed giants like Japan and China in specific finished automobile goods in 2023-2024 due to the surplus production from their Dacia and Renault plants. According to data from the Moroccan Foreign Exchange Office and Automotive Logistics, the African country surpassed major competitors like China and Japan in 2023 to become the leading exporter of passenger cars to the EU, with export values surging nearly 30% year-over-year to approximately 15.1 billion euros (USD 16.4 billion). This milestone was underpinned by a robust production volume of 536,000 to 578,000 vehicles, nearly 80% of which were destined for European markets, primarily France, Spain, Germany, and Italy.
Tunisia, in contrast to Morocco, specialises in the inner components of cars. Almost 80% of Tunisia’s automotive component exports, such as wiring harnesses and control cables, end up in Europe. If Tunisia slows down or if its economy is disrupted, European assembly lines also grind to a halt.
It’s a sector that employs over 90,000 people and serves as the country’s largest export industry. According to the Invest in Tunisia Agency, roughly 65% to 75% of these companies are entirely export-oriented, which resulted in EU imports of Tunisian automotive parts exceeding 520 million euros in 2024.
European fast fashion has been predicated on cheap textile imports from Asian countries like Bangladesh or Vietnam. But the estimated delivery times from East Asia to Western Europe slow down fast fashion. Trends come and go in months and seasons. But that’s changing as manufacturing begins in North Africa.
The nearshore advantage makes fashion trends come and go in weeks or days rather than months. This is a great advantage for the myriad fashion capitals in Europe. As of Inditex’s recent annual reports, approximately 47-50% of their total production comes from these “proximity” markets, with Morocco listed as one of their primary manufacturing clusters.
Grand Port In The Mediterranean
All this is possible because of a global maritime hub called Tangier Med. The logistical weapon for European competitiveness.
It is a major industrial port complex in Northern Morocco, located near the Strait of Gibraltar and serving as a key gateway between Africa, Europe, and global shipping routes.
Unlike traditional ports, Tangier Med is surrounded by free trade zones housing thousands of companies. This proximity means raw materials arrive, are processed into finished goods (car seats, wiring, garments) within the zone, and are re-exported to Europe with minimal friction.
With four container terminals with a capacity of around nine million TEUs, along with facilities for bulk cargo, hydrocarbons, vehicles, and passenger traffic, all supported by strong rail and road links, Tangier Med is Europe’s leverage against China.
The port functions primarily as a global transhipment hub while also handling Morocco’s import and export needs. As the largest container port in Africa, connected to nearly 190 ports in over 70 countries, Tangier Med will not just benefit Europe, but also Africa. It has surpassed historic European rivals like Valencia and Algeciras in pure volume.
Maghreb is Europe’s industrial backyard. And it’s not just cheap labour. Maghreb also has very skilled workers who have been trained for Industrial growth. There is also an abundance of renewable energy in Morocco, including wind and solar farms, which comply with European standards.
As of 2024, Morocco’s installed renewable energy capacity reached 4.0 GW, marking a significant 67% increase since 2015. This expansion was reflected in 2023, when renewable energy production surged by 22.7%, ultimately accounting for approximately 21.7% of the country’s total electricity generation.
To further this momentum, Morocco has set an official target to source 52% of its electricity from renewables by 2030, a goal supported by massive infrastructure initiatives like the Noor Ouarzazate Solar Complex, which stands as one of the largest of its kind in the world.
From Periphery To Core
The Maghreb has graduated from being a secondary sourcing option to becoming a primary pillar of European industrial security. As the EU seeks to insulate itself from global supply shocks, the “Pan-Med” network offers a solution that combines proximity, capacity, and efficiency. The data is clear.
With Tangier Med processing record volumes and North African factories powering European assembly lines, the Mediterranean is no longer a barrier but a conveyor belt connecting the future of European manufacturing to its southern neighbours.