China's interest in the Dutch space sector has raised concerns over the possible circumvention of export restrictions, according to a report by the Netherlands' military intelligence agency, MIVD. 

Reuters tells us that a report points to China is looking to acquire equipment and knowledge from the Dutch space sector, specifically "launchers with intelligence, surveillance, reconnaissance (ISR), and communication satellites." 

The MIVD also discovered cover companies used by Chinese entities to obtain military-relevant technology outside of export restrictions.

China's Relentless Space Program Efforts

According to Global Times, the white paper "China's Space Program: A 2021 Perspective" published by the Chinese State Council Information Office in January 2022, clearly states that China has always advocated the peaceful use of outer space and opposes any attempt to turn outer space into a weapon or battlefield or to start an arms race in outer space.

China intends to become a major space power by 2030 by developing cutting-edge quantum communication networks with global coverage. However, the recent MIVD report suggests that China's interest in the Dutch space sector is not solely for peaceful purposes.

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According to the MIVD report, China's satellite launch capacity will increase to 100 launches per year in the coming years, raising concerns that China may acquire technology that could be used for military purposes.

China's Growing Threat to Dutch Economic Security

On Monday, April 17, the Dutch general intelligence agency, AIVD, warned of China's growing threat to Dutch economic security. 

According to the report, China posed "the greatest threat to Dutch economic security" because of its efforts to acquire knowledge and technology from Dutch firms. 

"The Chinese use cyber as a weapon, cyber as a way to commit espionage, but they also send people to us - students, but also scientific persons of all kind to especially steal knowledge from very vulnerable places," the agency's director-general, Erik Akerboom said.

In response, China's embassy in the Netherlands rejected the AIVD's remarks, calling the accusations of Chinese firms spying false and stating that Chinese firms followed Dutch laws and regulations instead.

The report raised concerns about China acquiring Dutch technology, such as advanced ISR and communication satellites, which could be used for military purposes. 

The MIVD report highlights that China's interest in the Dutch space sector may allow them to gain knowledge and expertise that will help them develop and improve their space program.

The Netherlands announced earlier this year that it would impose additional restrictions on exporting machines that manufacture advanced processor chips, APNews reports.

The Dutch have joined a US-led effort to restrict China's access to materials used to make such chips amid concerns that they could be used in weapons, to commit human rights violations, or to improve the speed and accuracy of military logistics.

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