Giving evidence at the Higher Regional Court in Dresden, Alternative for Germany (AfD) lawmaker Krah said he first learned from media that a former staffer from his previous role as a member of the European Parliament, Jian Guo, was suspected of spying.
"At no time was I warned by any public authority, whether from the Federal Republic (of Germany) or the EU, of any danger," Krah said in the witness stand.
Security checks at the European Parliament were "very thorough", he added, meaning that he assumed "everything would be fine".
Prosecutors allege that Guo, a German national, worked for Chinese intelligence from 2002, including while working in the Brussels office of Krah when he was an MEP between 2019 and 2024.
Guo, who denies the charges, is accused of passing on to Beijing more than 500 documents, some deemed highly sensitive, as well as information about decisions and debates at the European Parliament.
Krah said he had employed Guo in his office because of his language skills as well as his experience running an import-export firm.
As an MEP, Krah served on the committee on international trade.
Guo is also accused of being the handler for a second alleged operative, a Chinese national identified as Yaqi X., who is accused of spying on German defence companies.
At the start of proceedings, Yaqi X. admitted passing on information to Guo about flight schedules and cargo movements at Leipzig-Halle airport, where she worked in logistics.
The trial is expected to run through September. If found guilty, Guo faces up to 10 years in jail while Yaqi X. could be imprisoned for up to five years.
Separately, Krah is under investigation on suspicion of money-laundering and bribery during his time as a member of the European Parliament.
He has previously denied the allegations and said they were "politically motivated".
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