Germany warns of Chinese and Russian ‘hi-tech spies’

Germany's domestic intelligence agencies say Russia and China are increasingly spying on British and German firms in a bid to gain the economic edge.

The German reports mirror MI5 concerns that first surfaced two years ago when it was estimated at least 20 foreign powers were spying on British hi-tech companies such as BAE and Rolls-Royce.

In 2007 MI5 wrote to 300 British companies, including Shell, warning them of the threat as computer networks are hacked for information. The agency believes that "at least 20 foreign intelligence services are operating to some degree against UK interests", and say the Chinese and Russians concern them most.

German officials said the Chinese have become supreme opportunists, hoovering up information on the "grains of sand" principle, picking up the smallest pieces of information and closely analysing them.

Officials of the Office for the Protection of the Constitution warn companies of being wary of inviting large delegations from China or Russia to visit plants in a bid to boost business; chances are they will contain spooks.