BDI warns of security risks in research collaborations with China

Berlin. The Federation of German Industries (BDI) warns of growing security risks from research collaborations with China. “China is pursuing access to key technologies and know-how systematically, over the long term and with a broad range of instruments,” said Kerstin Petretto, senior advisor for innovation, security and technology at the BDI, to the Handelsblatt.

“Scientific collaborations and supposedly civilian contacts can also be used for this,” said Petretto. "This can be particularly critical for technologies that are not only economically relevant, but also militarily relevant."

The background is known deficits in security precautions at the Helmholtz Center for Information Security (Cispa). According to external auditors, the center inadequately protected data and business secrets and "cooperated and published with risky individuals and institutions from the People's Republic of China."

The audit by the auditing firm KPMG was initiated after reports in the Handelsblatt about possible security deficiencies in cooperation with China in June. The Cispa case is not the only one to intensify the debate about research security.

In Saarbrücken it became clear that there are connections to China and Chinese military universities even in highly sensitive areas of cybersecurity. There are also close collaborations with China in research fields that affect national security at other German universities and non-university research institutions.

In May, the Federal Prosecutor General also had two German citizens with Chinese roots arrested who were said to have spied for China at the Technical Universities of Munich and Aachen. At the same time, it was announced at the Technical University of Munich that the university cooperates closely with Chinese military-related partners in drone research.

As a consequence, politicians are calling for other German research institutions to also be checked for espionage risks. The Office for the Protection of the Constitution warns that China could use scientific cooperation to gain technology and know-how. The authority cites, among other things, legal gray areas and a lack of risk awareness as weak points. The Chinese embassy in Berlin did not respond to a Handelsblatt request for comment.

“The BDI takes the warning from the Office for the Protection of the Constitution very seriously,” said Petretto. "We're not just talking about formal review mechanisms, but also about a fundamental attitude towards our partner China, which today is above all a systemic competitor."

Companies, universities and research institutions must therefore “examine cooperation in sensitive fields on a risk-based basis, consistently limit access to data and knowledge and make their staff more aware,” said Petretto. “Close and trusting cooperation with the security authorities” is also of great importance.

The German Chamber of Commerce and Industry (DIHK) calls for clear guidance. Germany benefits from international cooperation in research and development as well as knowledge transfer. “In order to maintain this and at the same time enable better risk protection, companies need appropriate framework conditions,” said Sebastian Bolay, DIHK department head for energy, environment and industry, to the Handelsblatt.

“From a business perspective, awareness-raising measures and practical guidelines on research security are complementary, useful support tools,” said Bolay. These could support companies in assessing and managing risks and cooperation partners.

The German Industrial Research Association Konrad Zuse points out the problems in dealing with research results. In the case of tax-financed projects, the approximately 80 institutes organized in the Zuse Community are required to publish the results and thus document them for the taxpayer.

This enables the outflow of knowledge abroad and is difficult to avoid, explained Zuse managing director Klaus Jansen. Other states, however, have regulations as to how and when results in sensitive research fields may be published.

It is different when an institute conducts research exclusively for a company, said Jansen. Then contracts regulated the protection of intellectual property. The agreements would be taken very seriously.

DIHK expert Bolay nevertheless advocates that companies and research institutes “basically continue to be able to decide for themselves how they diversify their research and supply chain partners and reduce risks on their own responsibility.”

The protection of one's own know-how and the strengthening of innovative strength are elementary for the competitiveness of Germany as a location. However, a high degree of risk awareness in research and development is part of “everyday business life,” said Bolay.

“Early indications, reliable situation information and a reliable exchange of information help to evaluate cooperation partners and possible risks in a well-founded manner,” said BDI expert Petretto. Freedom of research is a valuable asset. "But it does not release us from the responsibility to protect our knowledge, our innovative strength and our technological sovereignty."

The federal government has been working on a national platform for research security for almost a year. The federal, state and scientific organizations agreed on the project in December after months of dispute. The platform is currently intended to advise universities and research institutions. It should “primarily assume a coordinating and integrating function” and help “to assess issues and reduce risks,” said the Federal Ministry of Research upon request.