Chinese fast-fashion giant Shein is looking to expand its supply chain throughout the United States — and experts warn its plans may pose serious cybersecurity risks. The mostly-online retailer – known for cheap, trendy clothing items and valued at $66 billion in March – plans to sell supply-chain technology to global companies. US security experts have warned that Shein may be able to spy on the supply chain through these software deals and creep on customer data.
Shein’s involvement could present a risk of espionage, Dewardric McNeal, a senior policy analyst at Longview Global, told CNBC . “Given the intricate nature of the US and global supply chains, the potential for espionage or data gathering is a significant risk,” McNeal said. “Shein’s software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws.
” Chinese law requires companies to cooperate with handing over data, and despite Shein’s efforts to distance itself from the country, its supply chain and warehouses are still located in China. Shein moved its headquarters from China to Singapore in 2022 to ease scrutiny on the company – a tactic Lee Kair, a former TSA top official and current head of transportation at The Chertoff Group, called “Singapore washing.” “Even with a headquarters based in Singapore, company supply chain data could be subject to seizure by the Chinese,” Kair said.
“This is a clear vulnerability o.
