Shein Wants To Be Supply Chain Giant, But Privacy Concerns Continue

( – Amazon is on high alert when looking at Shein because of its Asian fast fashion, but its recent plans to become a supply chain giant, selling proprietary technology to other companies, is another concern.

United States National cybersecurity firms and national security experts are warning of a potential risk for a company that has close ties with China. There have been concerns with spying and security regarding China already, but the desire to grow their global logistics footprint now has security experts worried.

Shein logistics software is currently in beta testing with some supply chain customers. Companies of all sizes are connected by the supply chain, and the application programming interfaces, or APIs, are what keeps everything running smoothly.

Lee Kair, principal and head of the transportation and innovation practice at The Chertoff Group, said, “The APIs in the logistics infrastructure are very interconnected, often without cybersecurity being contemplated.”

Cybersecurity experts have said that the supply chain of vendors is changing all the time and so the potential to gain data access is extremely easy. Said Kair, “There is a tremendous amount of logistics integration in the world of fast fashion. These integrations can be compromised for nefarious purposes to expose customer data or compromise other connected systems.”

Exiger, a supply chain intelligence company used by the U.S. government, has a complex web of entities that are connected to Shein already, which proves that the supply chain is more diversified than many might think.

There are parts of the supply chain that intertwine with Shein already, such as those that are connected to major U.S. companies like Forever 21, which announced a partnership with Shein last year. Allowing Shein to embed their technology into U.S. supply chains could violate regulatory standards, undermine the competitive landscape, and bring in a ton of risks for cybersecurity.

Dewardric McNeal, managing director and senior policy analyst at Longview Global, said, “Given the intricate nature of the U.S. and global supply chains, the potential for espionage or data gathering is a significant risk.”

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