China's stress on security is holding back innovation, says German ambassador
German ambassador urges balance between China's security needs and business interests, as foreign firms are limited by slow internet speeds
China's push for innovation could be hampered as Beijing embraces more stringent national security requirements that risk undermining companies' operations as well as the movement of data online, German ambassador to China, Michael Clauss, says.
In an interview with the South China Morning Post, Clauss said concerns about the difficult operating environment for foreign companies on the mainland had deepened.
He called on China to strike a balance between the country's national security needs and its foreign business interests.
"If you overdo cybersecurity, it may kill innovation or at least hamper it, thus jeopardising economic growth," Clauss said.
The ambassador's remarks came amid repeated calls by Premier Li Keqiang to cut government red tape to nurture entrepreneurship and innovation, and as the State Council released a plan earlier this week, vowing to revamp its manufacturing sector to put it on equal footing with industrialised nations within a decade.
Cooperation with foreign companies will be boosted to improve manufacturing standards on the mainland, but security vetting for certain industries will be stepped up.
Clauss said it was appropriate for the government to streamline bureaucracy, but it had also put more obstacles in the way of foreign investment.