Shein's proposed acquisition of Everlane is currently facing a national security review by the U.S. government, according to a Bloomberg report from August 24, 2026. This scrutiny comes amidst growing concerns within the U.S. about Chinese companies' access to American consumer data and the broader geopolitical implications of foreign investments in domestic industries. The Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews foreign acquisitions of U.S. businesses for national security risks, is reportedly examining the deal.
The review adds a new layer of complexity to the already controversial merger between the fast-fashion giant Shein and the sustainability-focused Everlane. While the financial details of the deal, reportedly valuing Everlane at around $100 million, have been widely discussed, the national security aspect introduces non-financial considerations. Regulators are likely evaluating potential risks related to data privacy, especially given Shein's extensive customer base and data collection practices. The Biden administration has previously expressed apprehension regarding Chinese tech companies and their handling of U.S. user data.
The outcome of the CFIUS review could significantly impact the acquisition. The committee has the authority to approve, block, or impose mitigation measures on transactions it deems a national security risk. This review also highlights the increasing regulatory challenges faced by Chinese companies attempting to expand their presence in the U.S. market, particularly in sectors that involve substantial consumer data or have a perceived strategic importance. Both Shein and Everlane have not publicly commented on the ongoing national security review at the time of the Bloomberg report.
