House Intelligence Committee Sounds Alarm On Chinese Shopping App Temu

Authored by Jack Phillips via The Epoch Times (emphasis ours),

House Republicans on Sept. 25 requested a briefing by the FBI and U.S. Securities Exchange Commission (SEC) over shopping app Temu, whose owners reportedly have ties with the Chinese Communist Party (CCP).

The Temu logo is displayed on a laptop in San Anselmo, Calif., on Feb. 26, 2024. Justin Sullivan/Getty Images

Republicans on the House Intelligence Committee said they are concerned about the “growing national security and personal data concerns surrounding” Temu and its parent company, Pinduoduo, according to a statement. A letter noting their concerns, signed by every GOP lawmaker on the panel, was directed to FBI Director Christopher Wray and SEC Chairman Gary Gensler.

Those Republicans, led by Rep. Mike Turner (R-Ohio), said that they are flagging Temu and Pinduoduo for “possible trade, slave labor, and national security concerns.”

The letter highlighted their concerns about Temu and cited a New York Post report from June showing that senior executives at the company and Pinduoduo have an affiliation with the CCP. That report said that the firm’s top leaders include a former senior official in the CCP’s State Administration for Market Regulation and a former official with the regulation department of the Shanghai Administration for Market Regulation, among others.

Arkansas Attorney General Tim Griffin also told Fox Business in July that Temu is operated by Pinduoduo Inc., which is based in Shanghai and includes “former Chinese communist officials” in its ranks.

Other concerns include that the Pinduoduo app was suspended by Google last year because of malware concerns.

“Off-Play versions of this app that have been found to contain malware have been enforced on via Google Play Protect,” a Google spokesperson said in a statement last year.

When it was removed from the Google Play store, Pinduoduo said it was told by the tech giant that its “current version is not compliant with Google’s Policy,” adding that Google “has not shared more details.”

An Epoch Times review of the Google Play store shows that the Pinduoduo app currently isn’t listed, although Temu remains available and is one of the most widely downloaded apps on the Android platform.

“Due to the above cited incidents and many others, we are concerned about the protection of [Americans’] data,” the lawmakers wrote in their letter. “Analogous to Congress’ action on TikTok, the relationship between the Chinese Communist Party, Chinese national security laws, and [Americans’] data must be understood.”

The two federal agencies were asked whether the FBI has provided any intelligence to the SEC and whether the SEC has requested information regarding Temu or Pinduoduo relating to the companies’ reported ties with the CCP, malware concerns.

A report from research company Grizzly Research months ago said that it believes Temu has already illegally sold or intends to illegally sell “stolen data from Western country customers to sustain a business model that is otherwise doomed for failure.”

“Temu is estimated to be losing $30 per order. Its ad spending and shipping costs (1–2 weeks from China, expedited to U.S. delivery) are astronomical,” the report said.

The Epoch Times contacted Temu for comment on Sept. 25 about the House Republicans’ letter but didn’t receive a reply by publication time.

In July, the company told The Epoch Times that it rejected allegations made by Griffin in his lawsuit.

“The allegations in the lawsuit are based on misinformation circulated online, primarily from a short-seller, and are totally unfounded. We categorically deny the allegations and will vigorously defend ourselves,” Temu said. “We understand that as a new company with an innovative supply chain model, some may misunderstand us at first glance and not welcome us.”