China targeting German tech ‘through back door’ with licenses – report

BERLIN  – China is going after licenses to boost its access to German technology as investment regulation makes company acquisitions in the sector increasingly difficult, the Handelsblatt newspaper reported on Wednesday, citing a study.

The study conducted by the IW economic institute found German license revenues from China more than tripled in 2022 compared to 2014. Compared with 2020, the increase was about half.

“There is a clear early indication that Chinese companies are looking for a new way to get access to German technology,” said Juergen Matthes, head of IW’s global and regional markets research unit.

Tech licenses are one way for China to try to get in “through the back door”, he told Reuters.

The German government is pursuing a “de-risking” policy on China as it warns of over-dependence but acknowledges the importance of economic relations with the world’s second-largest economy.

IT and telecommunications, considered part of Germany’s critical infrastructure, are seen as particularly sensitive areas.

Classed as part of Germany’s critical infrastructure, the IT and telecommunications sector are considered particularly sensitive. The government is currently planning tougher rules to protect critical infrastructure from foreign influence.

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