Recently, a report released in the Netherlands has indicated that Chinese Communist Party spies have targeted the semiconductor, aerospace, and maritime industries in the Netherlands to enhance China’s military modernization. Experts believe that China has been collecting Western technology for military purposes for decades, and only now are Western countries starting to take notice, recommending joint efforts to prevent Chinese espionage infiltration from various angles.
The Military Intelligence and Security Service (MIVD) in the Netherlands released an annual report on Thursday (April 18), stating that Chinese spies have targeted Dutch semiconductor, aerospace, and maritime industrial technologies as a way to strengthen their military capabilities.
MIVD stated that China is investing heavily to enhance its ability to collect Western knowledge and technology, continuing its political espionage activities targeting the Netherlands and its allies.
In particular, Chinese universities play a significant role in intelligence gathering, as Chinese scientists collaborating with Western companies often also work for Chinese security agencies and state-owned enterprises.
In response, Chen Liangzhi, deputy researcher at the American Institute for Defense Strategic Resources, told Epoch Times on the 19th that this has been happening for a while, and it may be only recently that the Dutch government and other EU countries have become aware of it.
“For the Netherlands, they may have come to this conclusion after a long period of tracking investigations and evidence collection, realizing the significance of the situation and the need to bring it to light, hence the comprehensive report to explain, emphasize, and present it.”
Associate Professor Chen Shimin from the Department of Political Science at National Taiwan University also told Epoch Times that it is clear from this report in the Netherlands that “the espionage activities carried out by the CCP to collect technological intelligence did not start just now. In fact, in the past, I believe since the 1980s when interacting with the West, since the so-called reform and opening up, Beijing has been collecting intelligence.”
In recent years, especially since President Trump took office in 2017 and Western countries changed their attitudes towards China, they have started to become vigilant about China’s extensive collection of high-tech, especially in advanced weapon technologies.
Chen Shimin said, “Currently, the most crucial aspect is semiconductor technology, especially in the case of the Netherlands, where ASML, with its unique EUV or DUV optical technology, is most important. China, of course, is eager to infiltrate the Netherlands and steal this technology.”
In its annual report, MIVD stated that China is attempting to acquire Dutch technology through various means, including through cyber espionage, bribing company insiders, acquiring companies, bypassing export restrictions, and undertaking unauthorized technology reverse engineering.
The organization mentioned that Chinese intelligence agencies expanded the scope, intensity, and technical level of their network activities last year.
Chen Liangzhi believes that “China is also continuing to target Western armed forces to acquire knowledge of modern weapon systems and operational expertise, while also seeking to acquire technology from other advanced industries.”
He added that in terms of technology intelligence theft as part of Chinese espionage efforts, this certainly contributes to their military modernization.
“In terms of chip production, especially those used in military technology, China’s technology has always been somewhat behind that of the West and the US, not to mention the chips used by ordinary civilians.” Chen Liangzhi said that Beijing is indeed very concerned and is striving to catch up with the West in chip technology.
In late March, the US revised its export restriction regulations, including restrictions on chip exports to China. There are also indications that US restrictions will extend to lower-end mature chip industries and impose more sanctions on Chinese chip companies and military-related enterprises.
Wu Sezhi, a consultant at a Taiwanese think tank, also told Epoch Times that China will go to great lengths to acquire technology sources from other countries to enhance its own capabilities, as mentioned in the Dutch report, China hopes to develop military technologies.
Last year, the Netherlands joined the ranks of the US in restricting certain chip manufacturing technologies exported to China for national security reasons, including restrictions on leading chip equipment manufacturer ASML exporting certain deep ultraviolet (DUV) equipment to Chinese customers.
In February this year, Dutch intelligence publicly accused China of engaging in cyber espionage against the Netherlands, alleging that state-sponsored Chinese network spies had accessed Dutch military networks last year.
In March, Dutch Prime Minister Mark Rutte visited China and met with Xi Jinping. Rutte raised the issue of China’s cyber intrusions into the Netherlands during the meeting. Wu Sezhi believes that this was a form of accusation.
Chen Liangzhi stated that Rutte’s visit to China is a facade, and fundamentally, the diplomatic relations between the two sides will remain as usual. However, privately, I believe the Dutch national security units, as well as the EU and NATO system, will increase reminders and even discuss countermeasures and preventive measures.
Chen Shimin also noted, “Rutte’s visit to Beijing was basically to maintain economic relations between the Netherlands and China and to continue a certain level of relationship. But this does not mean that the threat posed by the CCP to the Netherlands in terms of systemic challenges will be taken lightly.”
“Some important Western political figures have recently visited China frequently, but this does not mean that relations with China have improved. The reason for their frequent visits is due to the interruption in interactions with China [CCP] over the past two years because of the pandemic.”
Chen Shimin added, “Basically, I believe they are wary of the CCP, which is becoming increasingly apparent now, not only from the Dutch report on Chinese espionage but also from similar reports in the US, UK, and Canada.”
“I personally think that Western countries should unite and adopt a common policy to exert pressure on Beijing, forcing it to stop engaging in political activities that harm the sovereignty of Western countries.”
Recently, the US, Canada, Australia, and other countries released intelligence reports indicating that China’s ambitions challenge the existing international order, infiltrating all levels of government and society to exert influence, conducting unprecedented espionage activities and political interference.
Wu Sezhi believes that the release of the intelligence report by the Netherlands at this time is crucial for Western democratic countries, indicating that in the face of the threat from China, it is necessary to expose China’s external behavior. After all, only by raising awareness of the risks and increasing scrutiny of China’s potential technology theft can other countries be informed.
“First, how to protect one’s high-tech industry to prevent the outflow of advanced technology. Secondly, to increase focus on defense against Chinese technology theft. The Dutch report actually has such an important implication.”
Regarding prevention measures, Chen Liangzhi believes that the first line of defense must involve vigilance in intelligence and counterintelligence by Western countries, including Taiwan, Japan, and South Korea among other Asian countries. Counterintelligence departments must be able to detect Chinese information collection activities and prevent them.
“The second aspect is that companies in the semiconductor industry need to strengthen their operations, information security, and internal security management. Thirdly, industrial companies and government commissioning mechanisms may need to be established to prevent espionage.”
Chen Liangzhi said that the next observation point is whether the Netherlands has strengthened its preventive measures, if other countries issue similar reports, and also to remind the EU and other allied nations to potentially impose mandatory countermeasures on China. For example, taking enforcement measures such as arresting or expelling spies or suspicious individuals is a point of concern for the future.
According to sources who spoke to Reuters, earlier this month, the US government also pressured the Netherlands to halt maintenance services for certain Chinese equipment.
Chen Shimin believes that Western countries should collaborate closely because preventing Chinese espionage cannot rely on just one country. Democratic and free countries like the US, Europe, Japan, Australia, and Canada should unite to form a comprehensive defense and prohibition system, which would be truly effective.
Editor: Fang Xiawei