German economy loses $297 billion over cyber attacks from China – Study

Admin I Wednesday, August 28, 2024

 

BERLIN – A survey of German businesses on Wednesday revealed almost half have suffered cyber attacks or other methods of industrial espionage from China.

Bitkom, a trade association for Germany’s IT sector, said that 80% of companies reported cases being affected by the theft of data or IT equipment, industrial espionage or sabotage in the last 12 months, causing damage to the German economy of up to €267 billion ($297 billion).

Bitkom President Ralf Wintergerst said the figures show “how conflict-ridden and tense today’s world is.”

Of more than 1,000 companies surveyed, 45% said they were able to trace attacks back to China, up from 42% in 2023, while 39% implicated Russia, down from 46%.

China – a vital economic partner for Germany – has attracted negative headlines in recent months after revelations that Chinese hackers spied on the auto giant Volkswagen for years. Wintergest said that, in a globalized economy, German companies are heavily entangled with Chinese partners.

“What has been built up over several decades in terms of supply chains, joint ventures and other structures cannot be reversed within a few years. It’s simply impossible,” he said.

Sinan Selen, vice president of Germany’s Federal Office for the Protection of the Constitution, an intelligence agency, said businesses must be aware of Chinese state involvement in the economy.

“It is simply a matter of not only seeing the opportunities, but also the risks. You have to categorize China as a partner for what it is,” he said. “And this gives rise to certain risks.”