German intelligence agency warned businesses on Wednesday (April 24) to be vigilant against industrial espionage activities by the Chinese Communist Party (CCP) and not to be too naive or overly reliant on China.
According to Reuters, Sinan Selen, Deputy Director of the Federal Office for the Protection of the Constitution (BfV) in Germany, stated, “I believe that in terms of partnerships and protecting Germany as a business location, we are transitioning from a very naive and highly optimistic attitude towards other economic partners to a more realistic, perhaps more flexible and diversified attitude.”
“We have many examples showing that an overly optimistic and positive attitude towards trade with China has led to the dissolution of these companies,” he said at an event related to the security impact of the CCP on German enterprises.
Selen stressed that one of the issues is that Chinese companies claim to be completely private, but in reality, they are controlled by the national interests of the CCP and receive support from the CCP’s national interests. The ultimate goal of the CCP is to become the world’s largest economic, technological, and political power by 2049. The CCP is pursuing its own interests and is using all necessary and available resources for this purpose.
The intelligence official also warned that areas of particular interest to the CCP include aerospace technology, robotics, electric vehicles and energy-saving technology, biomedical and information technology.
Just days before Selen issued the warning, German prosecutors announced the arrest of three German citizens. They are suspected of working for the Chinese national security department, transferring technology that can be used for military purposes to China. This case highlights increasing anxiety in Western Europe about CCP espionage activities.
Due to its strong industrial base and good commercial relations with China, Germany is particularly threatened by CCP espionage.
The German government urges businesses to reduce their exposure to risks related to China, but critics say many companies still prioritize short-term profits over long-term strategies.
Selen stated that Germany as a whole faces significant espionage challenges.
Given that the CCP is seeking to acquire dual-use military technology through research cooperation with foreign countries, German intelligence agencies hope to strengthen monitoring of CCP activities in university spin-offs and start-up companies.
In the case of the three German citizens arrested by German prosecutors this week, the defendants used companies established by two of them to reach a cooperative agreement with a German university to prepare advanced machine parts research for a Chinese contract partner. Such components are crucial for the operation of powerful ship engines, including those used in warships. The defendants also purchased a specialized laser device from Germany on behalf of the Chinese national security department and exported it to China without authorization.
The German Ministry of the Interior stated that this case affected areas of innovation technology in Germany that can be used for military purposes, making it “particularly sensitive.”