Shein, the fast fashion behemoth and rival to Alibaba's online fashion arm, reportedly filed for an initial public offering (IPO) in London. This move comes amid the company's ongoing struggles with its U.S. IPO filing.

What Happened: Shein's confidential filing for a London IPO follows its U.S. IPO filing last year, CNBC reported on Monday. The company's attempts to expand globally have been marred by allegations of forced labor in its supply chain and its use of a specific U.S. tax law exemption.

The National Retail Federation has repeatedly rejected Shein's membership applications, and IPO experts suggest that a U.S. offering is becoming increasingly unlikely. As such, a London offering could help Shein bypass some of the anticipated challenges. The story is still unfolding, and more updates are expected.

Why It Matters: Last year, Shein, along with other Chinese-owned e-commerce platforms like Alibaba (BABA  ), TikTok parent company ByteDance, and Temu (PDD  ), was scrutinized by U.S. lawmakers for data privacy practices and its relationship with the Chinese Communist Party. This scrutiny came as Shein was preparing for a U.S. IPO.

In February, reports emerged that Shein was considering shifting its IPO from the U.S. to London due to regulatory obstacles. The company was also reportedly exploring other potential venues, including Hong Kong and Singapore.

In May, Chinese firms began rebranding and setting up U.S.-based businesses to circumvent the Biden administration's intensified restrictions on Chinese companies operating in the U.S.