German officials said Wednesday that the country’s intelligence services have determined that Chinese state-sponsored hackers were responsible for a “severe” cyberattack on a federal agency in 2021 for the purpose of espionage.
Using an obfuscation network designed to hide their true identity and motives, the China-linked cyber-intruders compromised a range of personal and work devices to infiltrate a portion of the BKG network for the purpose of spying, the ministry alleged.
“This severe cyberattack on a federal agency highlights the significant threat posed by Chinese cyberattacks and espionage,” Nancy Faeser, Germany’s minister of the interior, said in a statement, adding that the German government “strongly condemns this cyberattack by state-sponsored Chinese actors.”
The German ministry also alleged that state-directed Chinese cyber actors have intensified their malicious activity in recent years.
In 2023, Chinese state-sponsored hackers carried out a series of targeted attacks on companies, government agencies, private individuals, and political institutions, the ministry alleged. The aim of these attacks was to gather information on political decision-making processes and the German government’s positions on foreign policy issues affecting China.
German intelligence services expect a further intensification of state-sponsored espionage and influence activities by China, which the ministry accused of pursuing an “aggressive” cyber strategy with the aim of stealing intellectual property to bolster China’s industry and its geopolitical aims.
The ministry said it believes that China plans to pour “enormous” resources into such cyber actions, which it expects to be increasingly sophisticated and dangerous.
Changing Strategy Toward China
Germany’s attribution of the 2021 attack reflects growing tensions between Berlin and Beijing on matters of security.In April 2024, German authorities arrested three individuals and accused them of spying for China and facilitating the transfer of technology with potential military applications.
Several weeks ago, Germany announced plans to phase out the use of critical components from Chinese companies Huawei and ZTE in key parts of its 5G networks. The ban is set to go into effect in 2026.
“This is having an impact on European and global security,” the document states, which calls for a change to Germany’s approach to dealing with China. It calls for continued engagement with China but “without endangering Germany’s free and democratic way of life, [its] sovereignty and prosperity, as well as [its] security.”
For years, China was Germany’s top trading partner, but the United States assumed that role in the first quarter of 2024.
German imports of goods from China fell by nearly 12 percent year-on-year in the first quarter, while exports of goods to China fell by just more than 1 percent, according to Juergen Matthes, an economist at the German economic institute IW.
The United States now accounts for about 10 percent of German goods exports, while China’s share has fallen to less than 6 percent, according to Matthes, who said this is a reorientation “away from system rival China and towards transatlantic partner U.S.”
