The news: Shein is moving forward with plans to shift its IPO to London as the Chinese fast-fashion giant struggles to win over US lawmakers and industry trade groups.

• The company could file to go public on the London Stock Exchange as early as this month, sources told Reuters.

How we got here: Shein’s US IPO seems likely to be a casualty of simmering geopolitical tensions between China and the US, even as the company tries to downplay its ties with the former and head off scrutiny into its supply chain.

• Shein is increasing its efforts to ensure compliance with US forced labor laws, according to The Information. That includes growing both its in-house compliance team and its spending with supply chain vetting firms by 50% by 2026, as well as pushing US-based managers to report potential issues as they arise without fear of retribution.
• The company has also repeatedly sought to become a member of the National Retail Federation (NRF) to boost its standing in Washington—although the group has so far rebuffed its advances.

The difficult road ahead: While Shein’s appeal to shoppers is unabated, that may not be enough to convince US lawmakers, who have shown that they are willing to take a hard line on companies with ties to China regardless of how popular those companies are with consumers.

• The difficult regulatory landscape is driving competitor Temu to limit its reliance on the US​​—a strategy that Shein may be forced to adopt should its charm offensive continue to fall on deaf ears.