Amazon's Asian rival Shein wants to be supply chain giant, but some fear Chinese cyber spying inside global trade links

The rise of Asian fast fashion retailer Shein already has Amazon on alert, but its plans of selling proprietary supply-chain technology and services to companies around the world has attracted attention from another corner: U.S. cybersecurity firms and national security experts who warn of the potential for a company with close ties to China spying on the supply chain as it seeks to grow its global logistics footprint. According to data from Exiger, a supply chain intelligence intelligence company used by the U.S. government and critical infrastructure industries for risk management, there is a complex web of entities connected to Shein which indicates the company's supply chain is more expansive and complex than most people realize. Exiger data shows that while Shein has 44 direct relationships, such as with its parent company Zoetop, and discloses over 5,000 suppliers, an analysis of all of its materials producers shows a supply chain connectivity map that expands substantially. "Shein's software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws. This exposure poses a direct threat to U.S. supply chain integrity, making it vulnerable to exploitation and manipulation." Ram Ben Tzion, co-founder and CEO of Publican, a digital vetting platform for global trade, tells CNBC it is possible for Shein, and the Chinese government, to misuse supply chain and consumer data. Shein's fast rise to dominance Shein's dominance lies in the company's hyper-flexible supply chain, according to a recent report from supply chain intelligence firm Zero100. "In a supply chain crisis, would Shein prioritize the supply chain fulfillment of a competitor or would they prioritize their own? In a retail world of razor-thin margins, more organizations see supply chain efficiency as a way to win the battle of the purse strings."Not only would Shein be able to knock off the product, but they would also be able to identify the region where it is selling and for how much," Fullerton said.