The coronavirus pandemic has exposed the overreliance of European companies and governments — already reeling from US-China trade tensions — on China for just about everything from cars to medicines, DW says in an article under the title "China's economic loss could be Morocco's gain".

"If you look at Morocco, there are more favorable conditions there for specific areas in particular, in relation to renewable energy and environmental related sectors, Morocco is quite a frontrunner and the EU tries to chip in on that," Guillaume Van Der Loo of Brussels-based think tank Center for European Policy Studies told DW. 

"The idea that the European Commission has already expressed about diversifying supply chains could be beneficial for Morocco and that could accelerate negotiations on the new trade agreement."

"The Moroccan economy will experience difficulties and changes in its composition. But there are also great opportunities to be seized," the Moroccan minister for industry, Moulay Hafid Elalamy, told MPs in April, briefing them on the economic fallout from the coronavirus pandemic, DW underlines.

"The opportunities that are opening up now for Morocco were not possible during the last 50 years," he said. 

Elalamy was simply echoing what many experts have been saying over the past few months as European companies, hit hard by massive supply chain disruptions caused by the COVID-19 outbreak, strive to make their value chains more resilient to future shocks, including by reducing their overreliance on China and bringing their manufacturing closer to home.

Morocco, an oasis of political stability in the EU's turbulent southern neighborhood and a reliable trade partner of the bloc, could be an obvious choice for companies looking to shorten their supply chains, experts say. 

"Morocco is very well positioned because of its proximity, because it's part of EU's regional trade agreements, its rules of origin are kind of integrated with those of the EU," UNCTAD's Alessandro Nicita told DW.   

The north African country, touted by many as a gateway for Western investment in Africa, is one of the few countries in the world that have free-trade deals with both the US and Europe, both of which are currently in talks for even deeper and more comprehensive trade deals, the source notes. 

Its burgeoning economic and commercial links, especially with the EU, massive investment in infrastructure, and incentives such as tax breaks and free plots of land have seen it emerge as a leader in attracting foreign direct investment in Africa, with France leading most of the investment in 2018, it adds.

In no other sector would the gains from the expected overhaul in supply chains for Morocco be more visible than the automotive sector, DW says, adding that the country has emerged as a hub for automakers targeting markets in Africa and Europe in the past few years, bolstered by massive investments from European car part makers. 

"Morocco is home to subsidiaries of large French carmakers Renault and Peugeot owner PSA."

"Morocco will be a strong contender to benefit from Renault's and PSA's restructuring as the country's autos manufacturing industry is dominated by these two OEMs [Original Equipment Manufacturers] and their supply chains are already well-developed in the country," analysts from Fitch Solutions say.

"Morocco could see increased investment into Renault's local supply chain as the OEM looks to restructure its operations to focus on its core markets (such as Europe and Africa-Middle East), which places Morocco's automotive industry in a strong position to capitalize on this restructuring plan due to its proximity and trade ties with Europe, Africa and the Middle East," the analysts add. 

The country's larger and cheaper labor force is expected to give it an edge over central and eastern European (CEE) countries, which could also potentially benefit from carmakers' restructuring plans, DW points out.