UPDATED: Belgian intelligence service monitors Alibaba hub over ‘espionage’ worry – FT

Oct 5 (Reuters) – Belgium’s intelligence service has been monitoring the main logistics hub in Europe of China’s Alibaba Group Holding over concern about possible espionage, the Financial Times (FT) reported on Thursday.

Referring to the company’s logistics center at the cargo airport in the city of Liege, the security service said it was working to detect “possible espionage or interference activities” by Chinese entities including Alibaba, the newspaper said.

Alibaba denied any wrongdoing, it added. Alibaba and the Belgian State Security Service (VSSE) did not immediately respond to requests for comment.

Alibaba signed an agreement with the Belgium government in 2018 to open an e-commerce trade hub, run by its logistics arm Cainiao, that would include investment in logistics infrastructure.

The newspaper, citing people familiar with the matter, said the Belgian security service was monitoring the company’s operations “following intelligence assessments”, with one area of scrutiny being the introduction of software systems that collate sensitive economic information.

The Belgian security agency told the FT the presence of Alibaba “constitutes a point of attention” for it because of legislation forcing Chinese companies to share their data with Chinese authorities and intelligence services.

Alibaba last month filed to list Cainiao on the Hong Kong stock exchange, which would make the unit the first to be separated since the Chinese e-commerce giant said this year it would restructure and split its business into six units.

Belgian intelligence service scrutinising Alibaba’s presence at Liege airport

Belgian officials are looking into risks around the presence of China’s Alibaba Group Holding at a cargo airport in the city of Liege, the country’s intelligence service VSSE said in a statement on Thursday.

Referring to the company’s main European logistics centre at Liege Airport, the security service said it was working to “detect and fight against possible spying and/or interference activities carried out by Chinese entities including Alibaba”.

Belgian authorities are looking into Alibaba’s operations at the airport based on an analysis of China’s legal framework, the statement added.

The presence of Alibaba “still constitutes a point of attention” for the VSSE, it said, due to legislation which obligates Chinese companies to share data with Chinese authorities and intelligence services.