Beijing’s aggressive industrial policy goals have resurfaced in the midst of a controversy involving alleged espionage activities linked to a subsidiary of Alibaba at Liège Airport in Belgium, which is Europe’s fifth-largest cargo airport hub.
As investigations are underway, the Belgian Security services are looking into possible espionage and interference activities carried out by Chinese entities, including Alibaba’s logistics spin-off called Cainiao. Cainiao oversees the shipment of goods sold to European customers through Aliexpress, an e-commerce platform. The Belgium State Security Service has reportedly been monitoring Alibaba’s operations for two years due to a Chinese regulation that requires companies to share their data with Chinese authorities and intelligence agencies.
According to Carlos Perez, the research practice lead at TrustedSec, this law empowers the government to request the cataloging or modification of items passing through the hub, which could potentially be utilized for cyber warfare in the future.
Economic espionage refers to the targeting or acquisition of confidential information concerning trade, technology, or financial data. It is suspected that Alibaba may be employing its equipment at the airport hub to collect proprietary data related to transactions between companies and countries purchasing goods. John Vecchi, the chief marketing officer at Phosphorus Cybersecurity, highlights the possibility of Chinese authorities being able to exploit the companies involved in these transactions by gaining access to data such as company and personnel details.
These concerns arise from China’s ambition to dominate global markets through its rapid expansion in the e-commerce industry. Cargo hubs and warehouses are crucial for efficient and prompt delivery of goods, but they also provide an opportunity for sophisticated technology to be used as a tool for espionage.
Vecchi explains that Chinese technology can be shipped with pre-installed malware, and once the devices are connected to a network, the malware can spread. As a result, the US Federal Communications Commission (FCC) has taken measures to prohibit the import of various Chinese telecommunication devices and equipment as a step towards mitigating spying risks.
However, despite these measures, the question remains concerning existing devices and the apps already downloaded onto them. For example, popular Chinese social media platform TikTok has recently launched online shopping services in the US and has started establishing fulfillment centers. Similarly, Chinese online fashion retailer Shein has significantly gained market share in the US, raising concerns over the potential for spying.
Vecchi warns that simply deleting the TikTok app is not enough to eliminate spying risks, emphasizing the importance of consumer awareness regarding these potential risks.
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