Shein completed the $80 million acquisition of American clothing retailer Everlane in May 2026 [1, 2, 3]. Shortly after closing the deal, Shein voluntarily requested a national security review from the Committee on Foreign Investment in the United States (CFIUS), an uncommon step since companies typically seek approval before finalizing such transactions [1, 2, 3]. The review focuses on potential risks tied to Shein’s acquisition of a U.S. company that handles Americans’ personal data [1, 3].
CFIUS is led by the U.S. Treasury Department. Shein engaged King & Spalding lawyer Phil Ludvigson, a former senior Treasury official, to handle the CFIUS filing after the deal closed due to financial urgency [1].
Although Shein has relocated its headquarters to Singapore, the company maintains substantial operations connected to China. It is also subject to Chinese regulatory approval for its Hong Kong IPO, which launched in the same week as the Everlane acquisition [1].
A Shein spokesperson said the company is “committed to complying with all applicable laws and regulations in the markets where we operate” [1]. The outcome of the CFIUS review remains unclear at this time [1, 3].
News of the ongoing review surfaced publicly on August 24, 2026 [1, 2, 3].
