The Committee on Foreign Investment in the US has launched a national security review of Shein's acquisition of clothing retailer Everlane, Bloomberg reported citing unnamed sources. The Treasury-led interagency panel began scrutinising the transaction after the $80m deal was finalised in May 2026, with Shein itself initiating the review process at that point—a departure from standard practice since companies usually obtain CFIUS approval before a deal closes. The central question is whether Shein's ownership of a business holding US consumers' personal data poses a threat to national security, and no outcome has yet emerged from the review. Despite relocating its headquarters to Singapore several years back, Shein continues to run substantial operations within China and remains bound by Chinese regulatory requirements. Following the completion of the Everlane acquisition, Shein appointed Phil Ludvigson, a King & Spalding attorney and former Treasury official, to oversee the CFIUS submission, and a source with knowledge of the deal said the filing came after closing because Everlane's precarious finances required the companies to move quickly, unrelated to any government prompting or interference. A Shein spokesperson stated the company is committed to complying with all applicable laws and regulations in the markets where it operates. In another development, Shein commenced its much-anticipated initial public offering on the Hong Kong exchange today, aiming to raise up to HK$13.9bn ($1.8bn) through the sale of 279.99 million shares priced in a range of HK$47.60 to HK$49.50 each, putting its market capitalisation at approximately $25.7bn to $26.8bn, with trading scheduled to commence on 1 September.
Shein faces national security review over Everlane deal, but also launches IPO; mixed impact.
US national security probe into Shein's acquisition of Everlane due to consumer data concerns.
