Specifically, the VDMA criticizes the fact that the planned regulations on national Chinese crypto standards would not be compatible with international standards. From the perspective of mechanical engineering companies in Germany, this would be a painful misguided development. China would run the risk of not being able to jump on the digitalization bandwagon in the first place. The VDMA is therefore calling for the planned legislative initiative to be brought into line with industry requirements.

According to Steffen Zimmermann, VDMA expert for industrial security, foreign companies have already been struggling for years with the susceptibility of their Internet access in China to disruptions or with difficulties with VPN connections to headquarters in Europe. In addition, the partially mandatory disclosure of software source codes, which serve to protect trade and business secrets, has repeatedly led to discussions in China. "As a result, the VDMA believes that the integrity, quality and reliability of digital services required for Industry 4.0 are not yet in place in China," says Zimmermann.

D/CN 2015 agreement on cybersecurity just a fig leaf?

In July 2015, Federal Minister of Economics Sigmar Gabriel met with his Chinese counterpart, Minister of Industry and Information Technology (MIIT) Miao Wei. A joint declaration of intent was signed on cooperation between the two countries in the area of "Industry 4.0". The aim of the German government is to strengthen the innovation partnership with China and create improved framework conditions for industrial digitalization.

Both sides agreed on the following principles in the declaration of intent:

• effective protection of intellectual property
• voluntary nature of technology transfers
• Transparent standardization procedures
• Ensuring the security of companies' data
• Improving the framework conditions for entrepreneurial activities

According to the VDMA, the planned Chinese cybersecurity law is contrary to these agreements. In fact, the measures and requirements presented in the draft law weaken the current position in all respects.

In view of this situation, the VDMA is calling for no new market access restrictions to be created and for the use of internationally recognized standards to be promoted. If products are introduced to the Chinese market, no additional barriers to market entry should be created through the exclusive use of "standards" that are only recognized locally in China, as provided for in the draft law.