Berlin The Federal Office for the Protection of the Constitution (BfV) warns more clearly than ever before of the dangers for German companies from Chinese espionage. Because of its “comprehensive approach to information gathering, China is the greatest threat in terms of economic and scientific espionage and foreign direct investment in Germany,” says the intelligence report for 2022, the head of the agency Thomas Haldenwang together with Federal Minister of the Interior Nancy Faeser (SPD) on Tuesday in Berlin presented.
The actions of the Chinese services are related to China’s global ambitions, the secret service officials state in their annual report. Behind this is the goal set by the state and party leadership “to become a world power at least on an equal footing with the USA by 2049 and to assert the People’s Republic’s claim to global leadership”.
This means that “a further intensification of espionage activities and influence activities by state actors can be expected”. In the foreword to the report, Interior Minister Faeser also names countries such as Russia, Iran, Turkey and North Korea, which are “massively active in secret services” in Germany, in addition to China.
The timing of the publication of the report for the protection of the constitution is explosive. Because this Tuesday the German-Chinese government consultations are taking place in Berlin. In addition to Chinese Prime Minister Li Qiang, numerous other Chinese ministers are also taking part. Li had already met with representatives of the German economy on Monday.
The German-Chinese trade relations play a special role in the risk analysis of the Office for the Protection of the Constitution. Chinese investments in Germany in particular are sometimes viewed critically because they “enable access to technologies, know-how or intellectual property,” according to the Federal Office’s report.
Chinese direct investments as a gateway for political influence, espionage and sabotage
In order to implement its ambitious industrial policy, China is trying to buy all or part of German companies with cutting-edge technology. “FDI not only offers China an opportunity to catch up on innovation gaps and achieve a technological edge, but also opens the door to political interference, espionage and sabotage,” the annual report says.
The report by the Office for the Protection of the Constitution places a special focus on China this year.
(Photo: IMAGO/Future Image)
The Office for the Protection of the Constitution also sees risks for public security in Germany if direct investments are made in areas of sensitive technologies or critical infrastructures. The secret service officials do not name specific areas.
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It is expected that the Chinese leadership will also use the talks with the members of the federal government to oppose stricter restrictions on Chinese companies in Germany. The Chinese are also likely to address the expected restrictions for the Chinese IT group Huawei in the expansion of the 5G mobile network.
The publication of the intelligence report during the German-Chinese government consultations is explosive.
(Photo: AP)
The entry of the Chinese state-owned company Cosco into a Hamburg container terminal, which is considered to be a critical infrastructure, recently caused political discussions. Intelligence services and several federal ministries had warned against selling shares in Cosco. Ultimately, a minority stake was approved. Corresponding contracts were signed by Cosco and the operating company on Monday.
In two other cases, in the case of the Bavarian company ERS Electronic and the Dortmund semiconductor manufacturer Elmos, the intended acquisition by Chinese investors was prohibited by the Federal Ministry of Economics.
Concern about the competitiveness of Germany as an industrial and technological location
In the opinion of the Office for the Protection of the Constitution, China poses a risk to the German economic model – which is why the authority’s warning is so urgent. “The extent of these activities can (…) jeopardize the competitiveness of Germany as an industrial and technological location and undermine the laws of the market economy,” fear the constitutional protectors. “Ultimately, there is a risk of a loss of prosperity and, as a consequence, risks for democracy, social cohesion and Germany’s independence.”
It’s not just Chinese investment that worries the intelligence community. The regime in Beijing is pursuing a “holistic approach of state-controlled transfer of know-how and technologies”, which also includes research cooperation and talent programs. “China knows how to set incentives for people from science and business to obtain information,” states the Office for the Protection of the Constitution.
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China’s espionage targets also include politics and administration. Information on Germany’s positions related to the People’s Republic would be obtained here – controlled via so-called Chinese legal residencies. According to the Office for the Protection of the Constitution, these are secret service bases that act “disguised” from an official representation, for example in an embassy. In this way, the Chinese side is trying to “win well-connected German (active and former) politicians as lobbyists for Chinese interests”.
More cyber espionage by China
The Office for the Protection of the Constitution also registers more cyber espionage. “Here, information about political opinion-forming, decision-making processes and positions of the German government on questions of German and European foreign policy that affect the Chinese state should be obtained,” says the report.
In 2022, the domestic intelligence service observed “continued attack campaigns” by Chinese state cyber actors, particularly against political targets in Europe – including Germany – and other western countries.
Cyber espionage is primarily intended to obtain sensitive information from the areas of business, science and technology. According to the Office for the Protection of the Constitution, there is intense interest in relevant future technologies such as biomedicine, aerospace technology, new materials, robot technology and artificial intelligence, maritime technologies, e-mobility, information technology and semiconductors.
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