The Committee on Foreign Investment in the US (CFIUS) 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.
Shein itself initiated the review process at that point—a departure from standard practice, since companies usually obtain CFIUS approval before a deal closes rather than afterwards.
The central question is whether Shein's ownership of a business holding US consumers' personal data poses a threat to national security.
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.
According to a source with knowledge of the deal cited by the publication, the filing came after closing because Everlane's precarious finances required the companies to move quickly—and this timing was unrelated to any government prompting or interference.
A spokesperson for Shein, quoted in the report, stated the company is “committed to complying with all applicable laws and regulations in the markets where we operate”.
According to CFIUS specialists, national security issues in deals involving consumer businesses generally arise from the gathering of customer names and addresses, tracking cookies used to build customer profiles, or military discount programmes that might expose the identities of service members.
The precise factors behind the Shein review remain undisclosed.
In another development, Shein commenced its much-anticipated initial public offering on the Hong Kong exchange today (24 Aug 26).
The firm aims 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.
Trading on the Hong Kong exchange is scheduled to commence on 1 September.
