Chinese Espionage targets Dutch high-tech industries to boost military capabilities.

The latest annual report from the Dutch Military Intelligence and Security Service (MIVD), released on April 19, 2024, has disclosed significant cyber espionage activities by China aimed at bolstering its military capabilities through unauthorized access to key technologies in the Netherlands. This revelation is part of China's broader efforts to become independent from Western technological influence and to develop a military that rivals the world's leading powers.
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The MIVD highlighted that China employs a variety of methods to obtain these technologies, including state-supported cyber espionage, collaboration with insiders within companies, strategic acquisitions, circumvention of export restrictions, and reverse engineering (Picture source: Army Recognition)

sAccording to the report, Chinese intelligence systematically targeted Dutch industries, including the semiconductor, aerospace, and maritime sectors, as part of its strategy to acquire advanced technologies. The MIVD highlighted that China employs a variety of methods to obtain these technologies, including state-supported cyber espionage, collaboration with insiders within companies, strategic acquisitions, circumvention of export restrictions, and reverse engineering.

Dutch intelligence agencies have been closely monitoring these activities and publicly accused China of cyber espionage for the first time in February, after discovering that Chinese cyber spies had infiltrated a Dutch military network. Furthermore, the Netherlands has coordinated with the United States to restrict exports of specific chip-making technologies to China. This includes limitations on the export of deep ultraviolet (DUV) equipment by ASML, a leading Dutch manufacturer, to Chinese customers. The United States has also pressured the Netherlands to stop servicing certain tools for ASML in China earlier this month.

The annual report also notes an increase in the scope, intensity, and technical sophistication of Chinese cyber espionage activities over the past year. Additionally, it mentions that Chinese universities play a pivotal role in these espionage efforts, with scientists often working in tandem with China's security services and state enterprises to gather intelligence.

Over the past few years, Europe has become a prime target for Chinese espionage operations aimed specifically at strengthening China's military capabilities by appropriating sensitive technologies and information. These espionage activities have often targeted high-tech companies and military institutions that are crucial to European defense and technological advancement.

China's objective through these incursions is clear: to gain a competitive advantage by breaking free from dependency on Western technologies and developing a sophisticated military arsenal. The methods employed include cyber espionage, infiltration by insiders, strategic acquisition of European firms in key sectors, and sometimes direct manipulation or circumvention of Western export restrictions.

In response to this growing threat, European countries have taken significant steps to bolster their cyber defenses. This includes expanding economic intelligence capabilities, strengthening national security legislation, and implementing stricter barriers against foreign investments in vital sectors. Intelligence agencies such as Germany's BfV and France's DGSI have increased their surveillance and collaboration with businesses to better detect and neutralize espionage attempts.

Additionally, initiatives at the European Union level have emerged to coordinate cybersecurity efforts among member states. Projects such as the European Union Agency for Cybersecurity (ENISA) aim to establish common standards and share resources to defend against cyber attacks and industrial espionage. This transnational cooperation is essential to effectively counter the threats posed by adversarial state actors, notably China, which continues to develop its technological and military espionage capabilities on a global scale.

Defense News April 2024