Partnerships open up Chinese market for EU companies, but data experts and intelligence services warn that consortia represent a security gap, according to Handelsblatt.
For a long time, this “enter at your own risk” principle applied to European companies that wanted to open up to the Chinese market and thus put themselves at risk of industrial espionage.
But what if the business risk of losing corporate secrets becomes a national security risk? When knowledge of critical technologies flows into China’s defense?
For a long time, Europeans have not been confronted with these questions, but they are likely to be preoccupied with them in the future. The focus is on joint ventures established by European companies in China with local partners.
There is, for example, the Dax Infineon group, which has entered into a joint venture with the Chinese state-owned company Shanghai Automotive Industry Corporation in the sensitive chip area.
There is also the example of the US server provider Supermicro, which is affiliated with the Chinese company Fiberhome through a branch in the Netherlands and thus avoids US sanctions.
And there is the French armaments group Safran, which produces electronics for the Chinese C919 aircraft with Shanghai Aircraft Manufacturing Company, a subsidiary of the state-owned Commercial Aircraft Corporation.
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Source From: Capital
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