Belgian authorities are intensifying their scrutiny of China’s Alibaba Group Holding (BABA) amid concerns about potential security risks associated with the e-commerce giant’s operations at Liege Airport, according to a statement issued by the country’s intelligence service, the VSSE, on Thursday. The VSSE has raised concerns about “spying and/or interference activities” by Chinese entities, including Alibaba, at the airport, which serves as the company’s main European logistics center.
This development comes as the Belgian government conducts a comprehensive assessment of China’s legal framework to better understand the implications of Alibaba’s presence in Liege. The government aims to ensure that national security interests are upheld while maintaining the integrity of foreign business investments.
The Financial Times was the first to report on these security concerns, to which Alibaba responded by denying any wrongdoing. In 2018, Alibaba entered into a partnership with the Belgian government to establish an e-commerce trading hub at Liege Airport, leveraging the capabilities of its logistics subsidiary, Cainiao. This collaboration marked a significant milestone in Alibaba’s European expansion efforts.
Furthermore, Alibaba recently unveiled its plans to list Cainiao on the Hong Kong stock exchange, a move intended to separate the logistics unit from its core business operations. However, the VSSE’s announcement underscores the ongoing debate surrounding Alibaba’s presence in Liege, as it relates to legislation mandating that Chinese organizations share information with local authorities and intelligence agencies.
Despite repeated requests for comments, Alibaba has remained tight-lipped on the matter. This situation underscores the increasing scrutiny that Chinese companies face in Europe, with Belgian authorities at the forefront of assessing the potential risks associated with Alibaba’s operations in their country.
As Belgian authorities continue their evaluation of the presence of Alibaba Group at Liege Airport, the global community will be watching closely to see how this situation unfolds. Balancing economic cooperation with security concerns is a complex challenge, and its resolution may have far-reaching implications for future foreign investments in Belgium and beyond.
Source: Reuters
