Lokesh Choudhary · · 1 min readShein faces cybersecurity review in China amid US listing plans
Photo credit: Melissa Goh / Tech in Asia
Ultra-fast fashion giant Shein is currently undergoing review by the Cyberspace Administration of China (CAC) over data handling concerns, the Wall Street Journal reports.
The CAC is interested in the nature of data shared with US regulators in line with Shein’s upcoming public listing. The agency is also scrutinizing how Shein manages information about its partners, suppliers, and staff in China, and whether the company could protect such data from overseas leaks.
The move comes as US politicians ramp up their focus on Shein, which might delay the company’s IPO plans. Known for quickly replicating trending styles at low prices, Shein’s business model has long raised concerns such as labor exploitation and intellectual property violations.
Indeed, Fast Retailing – the parent firm of Japanese fast-fashion giant Uniqlo – has sued Shein in Tokyo. The lawsuit alleges that the Chinese online retailer sold imitations of a bestselling Uniqlo bag.
Shein discreetly filed for an IPO in the US in November 2023. In 2022, the company raked in US$23 billion in revenue, marking a 36.9% increase from the previous year.
See also: US regulator’s approval could trigger bitcoin rush among SEA investors
Editing by Putra Muskita and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
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