According to a report by Bloomberg, the China-founded, Singapore-headquartered ultrafast-fashion giant's plans for a US IPO could be scuppered as it comes under scrutiny over its operations in Xinjiang.
Rubio alleges that Shein reached out to Chinese regulators for approval of its IPO, scrutinising a possible deception of US authorities and regulators about the business and associated risks of the company’s functioning in China.
He further claimed that the fast-fashion company presents itself as a “global” company to hide its ties with the People’s Republic of China (PRC) and the Chinese Communist Party (CCP), accusing Shein of being a “China-based company” instead.
In addition, the company is facing a cybersecurity probe from the Cyberspace Administration of China (CAC) as it is acquiring a US IPO.
According to the Wall Street Journal, the CAC launched an investigation into how Shein stores and uses information it holds on partners in China.
It said that despite not selling in China, the company was founded in the country before moving its headquarters to Singapore and retains close ties with its clothing suppliers.
At the end of last year, speculation surfaced Shein was weighing a UK public listing.
Shein is now in the early stages of exploring a London listing application, after reportedly holding talks with senior figures at the London Stock Exchange, the Bloomberg report claims, adding it is now also looking at Hong Kong and Singapore as alternative stock markets.
Shein is thought to be seeking a valuation of as much as $90bn, propelling it into the top-10 biggest companies on the FTSE 100.
The company has also been rumoured to be in talks with British Chancellor Jeremy Hunt. Sky News reports that Shein's executive chairman Donald Tang met with Treasury officials this month as the government attempts to persuade the company to list in the UK.
Shein did not return a request for comment when approached by Just Style.
