US scrutinises Chinese fashion retailer Shein's Everlane acquisition

Chinese e-commerce retailer Shein has come under regulatory examination by US authorities following its acquisition of American fashion brand Everlane, citing national security concerns centred on data protection. The review focuses on how personal information belonging to American consumers would be managed under Chinese ownership, a sensitive issue given mounting tensions over data privacy and security between Washington and Beijing.

Everlane, known for its direct-to-consumer model and transparency messaging, maintains a substantial customer database that the acquisition would bring under Shein's control. The move underscores growing wariness among US policymakers regarding foreign entities' access to Americans' personal and financial information, particularly from countries deemed strategic competitors.

The scrutiny reflects a broader pattern of heightened review of cross-border acquisitions in sensitive sectors. US regulators have increasingly wielded national security authority to block or impose conditions on deals involving data access, viewing such transactions through a geopolitical lens alongside commercial considerations.

Shein, which has rapidly expanded its operations globally and poses significant competition to established Western fashion retailers, has faced previous regulatory challenges in various jurisdictions. The Everlane review signals that even acquisitions in the traditionally permissive retail sector now face enhanced oversight when consumer data protection is implicated.