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Asian fast fashion retailer Shein plans to sell its proprietary supply chain technology and services to outside companies, prompting concerns from U.S. cybersecurity firms and national security experts. According to CNBC, these experts warn of the potential for a company with close ties to China spying on the supply chain as the nation seeks to grow its global logistics footprint.
CNBC reports that Shein logistics software is in beta testing with select supply chain customers, according to a person familiar with its plans.
Cybersecurity experts and policy analysts say the supply chain of vendors is constantly changing, and the potential to gain data access is as simple as identifying the weakest link in a company’s data network. Typically, small companies have more vulnerable back-office systems, with weaker cyber protocols.
In 2022, Shein moved its corporate headquarters from China to Singapore, where TikTok is based, to lessen regulatory scrutiny, a practice critics call “Singapore washing.”
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