Republican Senator Tom Cotton has urged the US Department of Justice to take a closer look at a number of parcel delivery companies tied to China, saying their rapid expansion in the American market could raise concerns around national security and supply chain control.
In a letter sent on May 19 to Acting Attorney General Todd Blanche, Cotton argued that several foreign-backed logistics firms are aggressively growing their presence in the US through ultra-competitive pricing, extensive data collection, and financial support coming from overseas investors.According to the senator, these companies are increasingly positioning themselves inside the American e-commerce logistics chain while undercutting domestic operators.
Among the companies mentioned are Gofo, backed by Zongteng Group, SpeedX, UniUni, J&T Express, YunExpress, and Cirro Logistics. Several of them are closely connected to cross-border e-commerce platforms such as Shein, Temu, and TikTok Shop, which have dramatically expanded their US presence in recent years.
Cotton argues that these carriers are becoming deeply embedded in daily American commerce. Many operate through gig-economy drivers or independent contractors and handle growing volumes of residential deliveries across US cities and suburbs.
According to the senator, the concern goes beyond pricing competition. He claims that the large amount of operational data generated by parcel deliveries — including routes, addresses, delivery behavior, and consumer purchasing patterns — could become strategically sensitive if accessed by foreign interests.
“These companies move through American neighborhoods, commercial districts, and roads near critical infrastructure,” Cotton wrote in the letter. “They collect detailed data on routes, businesses and homes while undercutting American competitors on price.”
The debate comes as Chinese-backed logistics startups continue to expand aggressively in the United States, particularly after the pandemic-era boom in e-commerce. Over the last five years, new low-cost delivery networks have multiplied, fueled by massive growth in direct-to-consumer imports from Chinese online marketplaces.
Some analysts and industry executives believe the concerns are legitimate. John Zendejas, founder and CEO of regional carrier Hovership, said the issue is not only about pricing pressure but also about control of supply chain infrastructure and consumer data.
He noted that delivery operations generate highly detailed street-level information, including shipping habits and purchasing patterns, which could potentially be valuable at scale. Zendejas compared the situation to the broader concerns that surrounded TikTok and data ownership debates in the United States.
“The main issue, for me, is really the takeover of the supply chain itself and the leverage that could be had if you’re a foreign government owning big chunks of the US supply chain,” he said.
Others, however, believe the national security angle may be overstated. Some logistics consultants argue that most of the location-related information collected during deliveries is already publicly accessible through mapping services and public records. For them, the bigger issue lies in pricing practices and labor structures rather than espionage concerns.
Several industry observers point out that many of these startups are still operating at a loss and rely heavily on investor funding to continue expanding their distribution networks and parcel infrastructure.
Mark Waverek, managing partner at PlaidMark Management Consulting, said the pricing strategies used by some China-linked carriers are difficult for traditional operators to match. According to him, certain companies are offering delivery rates below actual operating costs, supported by outside funding and lower labor expenses.
He also questioned how some of these companies continue operating without adding fuel surcharges, even as diesel prices keep climbing, saying it points to a longer-term strategy focused more on winning market share than turning a profit.
At the same time, competition in the parcel delivery sector is becoming increasingly intense and fast-moving.Major players such as FedEx and UPS have increasingly shifted toward higher-margin B2B logistics and complex cross-border freight services, while low-cost delivery startups battle for e-commerce volume.
Meanwhile, Chinese online marketplaces including Shein, Temu, TikTok Shop, Alibaba and JD.com are continuing to expand their logistics footprint inside the US by leasing warehouses and building domestic fulfillment capabilities.
The trend accelerated after the US government tightened the de minimis import loophole that previously allowed many low-value Chinese shipments to enter the country with limited duties and paperwork.
Cotton is now asking the DOJ to investigate several issues, including ownership structures, data handling practices, possible access by Chinese authorities, alleged predatory pricing models, and whether any of the companies are involved in tariff evasion or customs fraud schemes.
Some critics see the investigation as part of the wider tensions between Washington and Beijing, but the conversation also reflects a growing unease over who is gaining control of critical logistics networks as global e-commerce becomes more connected and increasingly dependent on data.
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