China Launches Data Review Into Shein Ahead of US IPO, WSJ Says

China’s prime cybersecurity watchdog is probing how Shein handles information because the fast-fashion firm is looking for Beijing’s approval for its preliminary public providing within the US, Wall Avenue Journal reported.

The Our on-line world Administration of China is trying into whether or not Shein can defend information on its China-based employees, suppliers and companions successfully and stop the data from leaking abroad, the Journal mentioned, citing unnamed individuals accustomed to the matter.

The Chinese language company can also be making an attempt to be taught what information Shein wants to supply to US regulators as a part of its preparations for a list in New York, based on the report.

It took CAC months to analyze related circumstances previously, the Journal mentioned, and the continuing probe may lead to delays to Shein’s inventory sale within the US.

Shein could possibly be pressured to fully scrap the IPO plan ought to Chinese language cybersecurity officers discover any severe fault with its information dealing with, based on the report.

Shein and CAC didn’t instantly reply to requests for remark.

CAC has grown more and more highly effective beneath Chinese language President Xi Jinping as his administration has tightened management over the hoard of data produced by the nation’s tech firms as a part of broader efforts to place China as a frontrunner in huge information. Beijing has been pouring cash into information centres and different digital infrastructure to make digital info a nationwide financial driver and assist shore up the Communist Occasion’s legitimacy.

Because of this, Beijing has scuppered the efforts by a number of Chinese language corporations to checklist abroad and compelled some to retreat from the US capital market.

Beijing-based ride-hailing start-up Didi World Inc. delisted from the US months after Beijing launched a probe into the corporate in July 2021. TikTok’s mum or dad ByteDance Ltd. additionally reportedly suspended plans to go public after Chinese language regulators advised it to deal with information safety points.

By Sarah Zheng

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