Shein’s acquisition of Everlane faces US national security review
US authorities are conducting a national security review of Shein Global Holdings’ purchase of American clothing retailer Everlane after Shein sought approval for the deal, people familiar with the matter said, adding to a growing list of regulatory hurdles for the China-founded fast-fashion giant in one of its most important markets. The review by the Committee on Foreign Investment in the US…
US authorities are scrutinizing Shein Global Holdings' acquisition of American clothing retailer Everlane, adding to the growing regulatory challenges faced by the China-based fast-fashion giant in the US market. The Committee on Foreign Investment in the US (Cfius) initiated the review after Shein voluntarily notified them of the $80 million transaction, which closed in May.
Cfius, led by the Treasury Department, has the authority to block or impose conditions on transactions deemed to threaten US national security. While a Shein spokesperson affirmed the company's commitment to comply with all applicable laws and regulations, the Treasury has declined to comment on the matter. Shein, which maintains significant operations in China, continues to be subject to Chinese regulators for its long-awaited initial public offering in Hong Kong.
The Cfius review focuses on potential national security concerns associated with Shein's acquisition of a company handling Americans' personal data, an increasingly sensitive issue in the context of the US-China rivalry. The review, which began after the deal's closure, is unusual as companies typically seek Cfius approval before a transaction finalizes.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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