US regulators are conducting a national security review of Shein Global Holdings Ltd.’s purchase of American clothing retailer Everlane completed in May 2026 for about $80 million [1, 2, 3]. The Committee on Foreign Investment in the United States (Cfius), an interagency panel led by the Treasury Department, is carrying out the investigation [1, 2, 3].
Shein voluntarily initiated the Cfius review after closing the deal, an unusual step since approvals usually occur before completion [2, 3]. The review centers on potential risks to national security tied to Everlane’s handling of Americans’ personal data [2, 3]. One source noted that such scrutiny often relates to how consumer data could be used to identify military personnel or other sensitive information [3].
Shein maintains significant operations in China despite relocating its headquarters to Singapore [2]. The company is preparing to raise up to HK$13.9 billion through an initial public offering in Hong Kong scheduled for September 1, 2026 [3]. Its estimated valuation at the IPO price range is around $27 billion, substantially reduced from $98.2 billion in 2022 [3].
A Shein spokesperson said the company is "committed to complying with all applicable laws and regulations in the markets where we operate" [2]. Cfius has authority to block, unwind, or impose conditions on transactions it determines threaten US national security [1, 2, 3].
The outcome of the Cfius review remains unclear as of today. Shein is set to proceed with its Hong Kong stock exchange listing on September 1, 2026 [3].
