US Think Tank Warns Temu Functions as Chinese Spyware
A US think tank reported that Temu, a Chinese e-commerce app, operates as spyware that collects user data and has connections to Chinese government entities. The report alleges the app requests excessive permissions, monitors user activity, and functions as both a surveillance tool and potential node for cyberattacks.
What happened
On October 24, 2024, the Center for Strategic and International Studies (CSIS) released a report warning that Temu, a Chinese cross-border e-commerce platform, functions as spyware designed to collect user data. The report states that Temu is coded as a 'digital parasite' that requests excessive access permissions at installation, allowing it to monitor all user activity and alter device settings in ways that are nearly impossible for users to remove.
CSIS warned that Temu has connections to Chinese government departments involved in data governance and propaganda, potentially making it a 'powerful covert surveillance tool' and possible node for distributed denial-of-service (DDoS) attacks. Market intelligence firm Grizzly Research similarly stated that Temu possesses all characteristics of malicious spyware, including hidden functions that enable data exfiltration without user knowledge.
Reported impact
CSIS noted that Temu has experienced explosive growth in the United States since its launch in 2022, spending $21 million on advertising during the 2024 Super Bowl and offering $15 million in giveaways, leading to widespread app downloads. The platform has faced allegations of selling products involving forced labor, potentially trafficking in fentanyl, selling dangerous products to children, and exploiting a customs exemption to avoid tariffs and inspections.
Index analysis
CSIS identified business connections between Temu's parent company Pinduoduo and People's Data, a company directly linked to the Chinese Communist Party's control of media and data. The report stated that while it is unclear what information Temu or Pinduoduo shares with People's Data, the e-commerce platform has demonstrated connections to the party's propaganda operations.
Governance controls
CSIS called for the Federal Trade Commission to investigate Temu's deceptive practices, including false advertising, fraud, and privacy violations, noting that the FTC has authority to take legal action against companies violating consumer protection laws. The think tank also recommended that the next government continue implementing President Biden's February 2024 executive order expanding measures to protect Americans' sensitive personal data from foreign adversaries including China.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.