Belgium's state security service, VSSE, is reportedly closely monitoring Alibaba's logistics hub in Europe amid concerns of possible espionage on behalf of the Chinese government. According to a report by the Financial Times, the VSSE is keeping a close eye on the activities of Alibaba's logistics arm, Cainiao, at the Liège cargo airport in Belgium. The VSSE claims that every Chinese company is legally required to provide data to Chinese security services upon request, which raises concerns that such data could be used for non-commercial purposes.
Cainiao has strongly denied these allegations, stating that it is in compliance with all laws and regulations where it operates. Furthermore, Alibaba has not responded to requests for comment on the matter. It's worth noting that Alibaba is currently preparing to spin off Cainiao through an initial public offering.
The VSSE argues that Belgian intelligence officers regularly monitor activities that could potentially involve spying or interference carried out by Chinese entities, including Alibaba. The Liège airport, which struck a deal with Cainiao in 2018 to become its European logistics hub, uses a collaborative data platform that allows real-time access to information for logistics partners, buyers, and sellers. The hub itself only opened earlier this year, in 2021.
This move by Belgian authorities comes as Western governments become increasingly cautious about granting access and opportunities to Chinese companies. Security concerns have prompted governments to scrutinize direct investments by companies from outside the European Union, especially in sensitive industries such as critical infrastructure, raw materials, energy, and defense.
In November 2020, the German government blocked the sale of a semiconductor factory to a Chinese-owned tech firm due to security fears. Additionally, concerns surrounding national security led to Germany's intervention in the purchase of a stake in a Hamburg port terminal by Chinese shipping giant Cosco, resulting in the reduction of the stake.
Alibaba recently announced plans to spin off and list Cainiao on the Hong Kong Stock Exchange. This development followed the e-commerce giant's decision, six months prior, to split its business into six separate units, each with its own CEO and board of directors.
In conclusion, Belgium's VSSE is reportedly monitoring Alibaba's logistics hub in Europe amid concerns of potential espionage. While Cainiao denies these allegations, Belgian intelligence officers continue to closely monitor activities that could potentially involve spying or interference by Chinese entities. Western governments have grown increasingly cautious about Chinese access to sensitive industries due to security concerns. These developments could have implications for Alibaba's future plans, including the spin-off and listing of Cainiao on the Hong Kong Stock Exchange.