German spy chief warns of dangers from Chinese hi-tech takeovers
Domestic intelligence head says Chinese investment in German firms could pose security risks and lead to loss of key technologies
The head of Germany’s domestic intelligence agency has urged vigilance about increased moves by Chinese companies to invest in and acquire hi-tech German companies, warning that the loss of key technologies could harm the German economy.
Hans-Georg Maassen said intelligence officials had been puzzled initially by a sharp drop in Chinese cyberespionage activities about two years ago, but then realised Beijing was simply using other, legal tools such as direct takeovers, to gain access to German know-how.
“Industrial espionage is no longer necessary if one can simply take advantage of liberal economic regulations to buy companies and then disembowel them or cannibalise them to gain access to their know-how,” he told a cyber conference.
Maassen said Germany remained open to foreign investment, including from China, but steps were needed to safeguard key technologies.
He said he had been particularly concerned about the takeover of German robotics maker Kuka by a Chinese firm in 2016 given the sensitive technology involved.