Shein finalized the $80 million purchase of American retailer Everlane in May 2026, expanding its footprint in the US fashion market [1, 2, 3]. Following the deal closure, Shein voluntarily initiated a national security review by the US Committee on Foreign Investment in the United States (CFIUS), a process that remains confidential and whose outcome is currently unknown [1, 2, 3, 4].
CFIUS is scrutinizing potential risks related to Shein’s access to Americans’ personal data through Everlane. The review focuses on national security concerns tied to data privacy rather than financial or operational matters [1, 3, 4]. Shein, originally founded in China but now headquartered in Singapore, maintains substantial operations in China, which has drawn regulatory attention in the US amid broader scrutiny of Chinese-affiliated companies [1, 4].
Shein faces multiple regulatory challenges in the US, including ongoing lawsuits and investigations into consumer protection and data privacy practices [4]. After closing the Everlane deal, Shein hired King & Spalding lawyer Phil Ludvigson, a former senior Treasury official with experience handling CFIUS filings, to manage the review process [1, 4]. A Shein spokesperson said the company is "committed to complying with all applicable laws and regulations in the markets where we operate" [1].
Shein stated the timing of the deal’s closure was driven by Everlane’s financial situation and not by government inquiries or intervention [1, 4]. However, the acquisition has drawn criticism from Everlane’s founder and some media commentators who argue it conflicts with Everlane’s sustainability and transparency values [4].
Reports about the CFIUS review surfaced publicly on August 24, 2026, prompting renewed scrutiny of the deal and Shein’s US operations [2]. The final decision on the national security review has not been announced, leaving the transaction’s regulatory status unsettled.
