Alibaba Accused of 'Possible Espionage' At European Hub

An anonymous reader quotes a report from the Financial Times: Belgium's intelligence service has been monitoring Alibaba's main logistics hub in Europe for espionage following suspicions Beijing has been exploiting its growing economic presence in the west. European governments have been increasing scrutiny of the alleged security and economic risks posed by Chinese companies, which has been part of a wider reassessment of the EU's traditional openness to trade with China. In specific reference to Alibaba's logistics arm at the cargo airport in Liege, Belgium's security services told the Financial Times they were working to detect "possible espionage and/or interference activities" carried out by Chinese entities "including Alibaba". Alibaba, which denies any wrongdoing, signed an agreement with Belgium in 2018 to open the hub in Liege, Europe's fifth-largest cargo airport, ploughing 100 million euros of investment into the ailing economy of the French-speaking Walloon region. But almost two years on from the site being opened, the Belgian State Security Service (VSSE) has continued monitoring Alibaba's operations following intelligence assessments, said people familiar with the matter. One area of scrutiny includes the introduction of software systems that collate sensitive economic information. The security service said the presence of Alibaba "constitutes a point of attention for the VSSE" because of legislation forcing Chinese companies to share their data with Chinese authorities and intelligence services. "China has the intent and capacity to use this data for non-commercial purposes," the agency said. Concerns about potential espionage at the site were first raised before the hub was built, including in the Belgian parliament. At the time China strongly denied the "unprovoked insinuations" over exaggerated "so-called security risks of Chinese companies." The VSSE's statement to the FT indicate its concerns over espionage still remain after the opening of the hub. [...] The main concern is that this platform, alongside a couple of other logistical platforms that the Chinese have been proposing to European countries, is giving them a lot of insights into supply chains and into eventual vulnerabilities," said Jonathan Holslag, a professor at the Vrije Universiteit Brussel. According to a person familiar with Alibaba's relations to China's government, the logistics centers are expected to pass on information about local sentiment and report data about European trade and logistics to Beijing's authorities. "The site in Liege is the only European logistics center run by Alibaba's logistics spin-off Cainiao," reports the FT. The company is reportedly able to access data about merchants, products, transport details and flows. It may also be able to access information about final customers.

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