German companies are facing rising cyberattacks from China, with almost half of the companies hit in some capacities by attacks coming from the Asian country, according to a survey by German trade association Bitkom.
A whopping 80% of companies told Bitkom that within the past 12 months they were victim of data or IT theft, industrial espionage or sabotage. Around 45% of the companies said that they traced back those acts to China.
Industrial espionage was responsible for up to €267 billion in damages for German companies, according to the survey. The damages are up 29% compared to the previous year, indicating a heated international context.
Chinese cyberattacks grew 3% compared to 2023, while Russia was responsible for 39% of them, down from 46% of the previous year. Nevertheless, the rise in attacks prompted companies to put more funds in their digital security to 17% of the budget from 14% in the previous year. Despite the raising attention, the survey found out that only over a third of German companies has emergency plans to counter possible disrupts in the supply chain.
Commenting on the survey, Bitkom President Ralf Wintergerst urged companies to invest more in cyber-protection and countering measure against industrial espionage.
There is a growing unease about Chinese industrial practices in German industrial circles, also following revelations that Chinese hackers have been spying Volkswagen for years. The government has been warning about operating with caution when dealing with China. However, investments have been steadily growing.
Wintergerst commented that Chinese and German companies are more and more intertwined and that it’s not about to change. He added that “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.”
