Diane Rinaldo, a senior associate at the Center for Strategic and International Studies (CSIS), has raised concerns about the Chinese-backed app Temu, suggesting it poses a threat to the United States. In an October 24 commentary, she emphasized that apps beyond TikTok warrant Congressional scrutiny.
"The allure of ‘shop like a billionaire' and ‘fast fashion' delivered by Chinese e-commerce site Temu, which offers cheap prices with rapid delivery, masks significant underlying security risks and vulnerabilities," said Rinaldo. "While Congress's attention to TikTok is welcome and necessary, it is only the first among many Chinese-backed apps that require closer scrutiny and legislative and regulatory action. Temu, in effect, is an information-gathering spyware program masquerading as an e-commerce site."
According to CNN, President Joe Biden signed legislation in April that could lead to a ban on TikTok unless its parent company ByteDance sells the platform by January 19, 2025.
Rinaldo said that Temu has "introduced new risks and exposed existing vulnerabilities into the regulatory information security, and legal frameworks of the United States." She described Temu as offering "cheap prices" but warned of an "information-gathering spyware program" embedded within the app. The app is reportedly designed to be "extremely difficult to remove," retaining data even after users delete it.
She further noted that Temu uses "forced labor," which violates U.S. laws. A report from the Select Committee on the Chinese Communist Party found that Temu does not comply with the audit and report requirements of the Uyghur Forced Labor Prevention Act (UFLPA). This act aims to ensure ethically sourced labor. Rinaldo highlighted that Temu admitted it does not prohibit third-party sellers from sourcing labor from China's Xinjiang autonomous region. The UFLPA seeks to prevent goods made with Uyghur labor in Xinjiang from entering U.S. markets. Additionally, she pointed out that Temu exploits the "de minimus rule," allowing importers to bypass customs duties on packages valued under $800.
According to Business of Apps, Temu was the most downloaded app in the U.S. during late 2022 and has maintained this status throughout much of 2023. Its gross merchandise volume reached $15.1 billion in 2023, with over 80 million active users in September 2023. More than 40% of these downloads originated from the U.S.
Rinaldo's role at CSIS involves work with both the Strategic Technologies Program and Economic Security and Technology program. Her previous positions include Acting Administrator of the National Telecommunications and Information Administration (NTIA) and Acting Assistant Secretary of Commerce for Communications and Information.
