Chinese Authorities Threaten To Fine Walmart For Allegedly Violating Cybersecurity Laws, But That's Not The Real Problem

Walmart allegedly violated China's Cybersecurity Law. (photo: doc. Unsplash)

JAKARTA - The Chinese government recently warned Walmart for allegedly violating cybersecurity laws. This is the latest problem facing the US retailer, which has been a target for alleged abuses in the country. Local media reported that a series of allegations were allegedly related to their efforts to stop the sale of products from Xinjiang.

Police in the southern Chinese city of Shenzhen discovered 19 “vulnerabilities” in the Walmart network system in late November 2021. They even accused him of being slow to fix existing loopholes. China Quality News, backed by the country's market regulator, reported this on Wednesday, January 5.

Walmart had already been ordered to make the fix, the report said, without specifying the fine or details of the vulnerability. But the retail giant and Shenzhen police did not immediately respond to a Reuters request for comment on the matter on Friday, January 7.

This marks a new set of problems for Walmart in China, which in the last month faced criticism for what local media said was a deliberate removal of Xinjiang-sourced products from its apps and stores.

Xinjiang is a growing point of conflict between Western and Chinese governments, as UN experts and rights groups estimate more than one million people, mainly Uyghurs and members of other Muslim minorities, have been detained in camps there. In contrast, China has rejected accusations of forced labor or other abuses in this far western region.

While Walmart has seen a wave of membership cancellations at its branch, Sam's Club, in China since the Xinjiang issue emerged. China's anti-corruption agency also accused the retailer and Sam's Club of their "ignorance and pettiness".

Although Walmart has not publicly commented on this, Reuters reports that a Sam's Club executive told analysts over the phone that the matter was a "misunderstanding" and that there was no intentional removal of products originating from Xinjiang.

In December, Sam's Club was also fined 10.000 yuan (IDR 22.4 million) in Shanghai by the city's market regulator for violating a food safety law after they discovered that their frozen vegetable products had no production or expiration date, according to local media reports.