Technological independence key focus in Germany’s China strategy

Germany’s first-ever China strategy puts technology at the heart of its efforts to lessen dependence on Beijing in areas from raw materials supplies, critical infrastructure protection, and cybersecurity, to counter-espionage and fighting disinformation.

The strategy that German Foreign Minister Annalena Baerbock presented on Thursday (13 July) states that “key technologies such as semiconductors, Artificial Intelligence and green technologies are becoming ever more crucial for prosperity and security.”

Although German Chancellor Olaf Scholz tweeted that his government’s aim is not to decouple from Beijing, the German strategy takes a more assertive stance on China regarding technology.

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The German government is expected to release its long-awaited China strategy on Thursday to reshuffle its relationship with the eastern giant that is increasingly perceived as a rival and competitor.

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Raw materials

The German strategy acknowledges its dependencies on China for “various metals and rare earths” crucial to chipmaking, as 94% of the EU’s rare earths come from China.

This dependency already caused headaches for Berlin last week after China announced import controls on Gallium and Germanium – two critical raw materials essential for producing semiconductors.

The strategy thus seeks to diversify its imports in a win-win manner, suggesting to support its partners extracting raw materials “in keeping more value creation” than just extraction in their own countries, thus promoting “prosperity” and economic growth.

Berlin is already at the centre of Europe’s effort to bring the production of semiconductors back to the Old Continent, with Intel planning to build two mega fabs in Saxony-Anhalt.

Critical infrastructures

The strategy lists telecommunication infrastructures as critical infrastructure for national security and states that “public 5G mobile telephone networks” have already been protected by specific laws.

Moreover, it assures that the Act on the Federal Office for Information Security “stipulates that operators of critical infrastructures have an obligation to disclose the planned first use of a critical component”.

However, Germany has often been singled out for dragging its feet in disposing of equipment provided by high-risk vendors such as Huawei, which has been accused of being at the mercy of Beijing’s authoritarian regime.

The strategy does not suggest a dramatic change of approach, but that Berlin will assess sector-by-sector based on their criticality level. For instance, the Federal Network Agency will publish a list of critical functions for the energy sector in 2023.

Why Germany keeps dragging its feet on the Huawei ban

There is growing concern in Brussels that national governments are too slow in excluding Chinese components, with the German government being particularly hesitant on the issue.

Technological sovereignty

Berlin furthermore wishes to “not become dependent on technologies from third countries that do not share our fundamental values”.

To keep pace with China, the German government plans to invest more in “emerging key technologies in good time” and use “strategic foresight” methods to identify them, boost Research & Development funding and enhance the protection of patents.

On this note, the Federal Government reiterates its commitment towards the EU regulations on technology, mainly the EU Chip’s Act, the AI Act, the Data Act and the Data Governance Act.

Cybersecurity & espionage

The German Federal government notes that cybersecurity is not different from analogue security, writing that they are “two sides of the same coin”.

The document further warns against “Chinese cyber actors [that] are engaged in economic and academic espionage in an attempt to gain access to German corporations’ trade and research secrets.”

Berlin said that it will contribute to the EU Cyber Diplomacy Toolbox, which is currently being revised, and work with like-minded partners to build international certification regimes to assess information technology security.

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Disinformation

Reiterating Germany’s commitment to Ukraine, the strategy highlighted the need to fight disinformation campaigns and false narratives.

Berlin warned that the German “democracy can also be harmed by the covert promotion of interests at the behest of Chinese authorities”, quoting an act introducing a Lobby Register for the Representation of Interests to the German Bundestag and the Federal Government intended to create more transparency in lobbying efforts.

Interference

The report demands that German schools, universities, teachers, and researchers ensure that Confucius Institutes uphold “the principle of the freedom of science, research and academic teaching” and are wary of maximum transparency of activities, “particularly when government funding is employed for cooperation with China”.

Eventually, Berlin wishes to ensure that the country’s sovereignty is not violated by “acts of transnational repression targeting Chinese citizens”. The German Federal government promises to take “countermeasures to tackle overseas police stations”.

To achieve this, it states clearly that it will target specific cells and organisations linked to the Communist Party of China in Germany.

German National Security Strategy leaves out cyber counter-attacks

After months of delay, the German government adopted its National Security Strategy on Wednesday (14 June), in which they rejected the controversial issue of ‘hackbacks’, a form of active cyber defence.

[Edited by Luca Bertuzzi/Oliver Noyan/Nathalie Weatherald]

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