CFIUS Launches National Security Review of Shein's Acquisition of Everlane
The U.S. Committee on Foreign Investment in the United States (CFIUS) has initiated a national security review into Shein’s acquisition of clothing retailer Everlane, according to Bloomberg. The $80 million deal was finalized in May 2026 and is now under scrutiny by Treasury-led agencies over concerns that personal data held by an American business owned by a Chinese firm could pose risks. This marks the first time such a review has been initiated after a transaction closed rather than before, as companies typically seek CFIUS approval prior to finalizing deals. Shein moved its headquarters to Singapore years ago but still operates significantly in China and is subject to Chinese regulations. The company appointed Phil Ludvigson, former Treasury official, to handle the submission for review. A Shein spokesperson affirmed compliance with all applicable laws. Concerns often arise from consumer data collection practices such as customer names, addresses, tracking cookies, or military discount programs. Separately, on August 24, 2026, Shein began its initial public offering in Hong Kong aiming to raise up to HK$13.9 billion ($1.8 billion) with a market capitalization estimated between $25.7 billion and $26.8 billion.
Topics: CFIUS data privacy foreign investment M&A