- China probes Shein over data handling before US IPO.
- The probe questions whether Shein properly protects internal data from foreign access.
- Despite controversies, Shein discretely filed IPO paperwork after boosting 2022 revenues to $23 billion.
Chinese ultra-fast fashion juggernaut Shein faces a cybersecurity investigation in its home country based on data sharing concerns tied to its forthcoming US stock listing. The Wall Street Journal reports China’s internet regulator is auditing if Shein properly protects internal data on staff, suppliers, and partners from foreign access.
An opaque operation
The rare scrutiny coincides with escalating criticism in America over Shein’s opaque operations enabling alleged labor exploitation and intellectual property theft. Fast Retailing, Uniqlo’s parent company, sued Shein for selling knockoffs.
Despite controversies shadowing its business, Shein discretely filed IPO paperwork in November after boosting 2022 revenues to $23 billion. But cyber probes and political barriers could hamper listing plans on top of market instability.
A public offering windfall
For a company expanding globally at breakneck speed on trend replication powered by shadowy supply chains, Shein always invited a backlash. Concerns appear to be reaching critical mass as founders eye a public offering windfall.
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Between data handling questions in China and cries to investigate Shein’s practices in the US, the once high-flying startup now sees its skyrocketing trajectory threatened from both sides.
Addressing critiques proves essential to float in turbulent times.
