Shein, a fast-fashion retailer, intends to broaden its product line by supplying supply chain technology globally. However, there have been reports of potential cybersecurity dangers and Chinese government intervention.

Shein is under investigation by cybersecurity companies and national security specialists because to its strong ties to China, as they worry that private customer data and logistics may be compromised. This was revealed by CNBC on Monday.

According to the article, Shein's logistics software is presently undergoing beta testing with a limited number of supply chain clients.

Shein stated in the report that "we try to limit our data collection to the minimum amount of information necessary to process commercial transactions." "We have developed systems in compliance with industry-leading data protection frameworks, including standards 27001 and 27701 from the International Standards Organization."

According to the paper, there are millions of connection points in the U.S. supply chain, and integrating application programming interfaces (APIs) without appropriate cybersecurity safeguards carries a substantial risk. Experts in cybersecurity caution that hacked integrations may reveal client information and jeopardize linked systems.

The analysis claims that the intricacy of Shein's supply chain, which includes thousands of partners and suppliers, increases the likelihood of vulnerabilities. More than 10,000 businesses are part of Shein's vast supply chain network, which extends outside the retailer to more than 50,000 entities.

According to the article, there are worries over data access and possible espionage because of this interconnection. According to experts, Shein's software puts the integrity of the US supply chain at risk and leaves it open to manipulation and exploitation by giving the Chinese government access to previously unheard-of levels of sensitive data.

In 2022, Shein relocated its corporate headquarters from China to Singapore in an effort to break ties with China. According to the study, some, however, consider this to be a form of "Singapore washing" and doubt the measure's ability to lessen regulatory scrutiny. Chinese law mandates that businesses assist the Chinese government in obtaining sensitive data pertaining to U.S. residents.

Shein reportedly considered London as a potential location for its initial public offering (IPO) due to political pressure and other difficulties in the United States, despite the company's confidential filing for an IPO in the United States in November 2023.

In an effort to support its "charm offensive" and persuade lawmakers that it might go public in the US, the store has allegedly been rejected in its repeated bids to join the National Retail Federation (NRF).