Topline
Chinese social media app RedNote has become a leading alternative for TikTok users concerned about the latter app’s ban set to take effect on Jan. 19, though, according to multiple outlets, RedNote could potentially face its own ban in the U.S. not long after.
RedNote topped multiple app store charts this week. (Photo by VCG/VCG via Getty Images)
Key Facts
The language in the law against TikTok, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, prohibits all apps developed by foreign adversaries like China from being hosted in American app stores or by internet hosting services, spelling trouble for RedNote, which is headquartered in China and owned by Shanghai-based Xingyin Information Technology.
An unnamed U.S. official told CBS News that RedNote “appears to be the kind of app that the statute would apply to and could face the same restrictions as TikTok if it’s not divested.”
Rep. Mich McCormick, R-Ga., told nonprofit news outlet NOTUS that lawmakers will target RedNote like they did with TikTok, saying, “We will legislate against them. I mean, we have to.”
Even if RedNote is not directly impacted by the TikTok ban, lawmakers are keen on curbing alternative apps; Rep. Beth Van Duyne, R-Texas, told NOTUS if TikTok alternative apps like RedNote are presented in a way to avoid the TikTok ban, “then obviously we’re going to have to look at creating more legislation to close that loophole.”
Anthony Michael Kreis, a constitutional law professor at Georgia State University, said in a post on X, formerly known as Twitter, that if enough users flee to RedNote from TikTok, a certain amount of user traffic could trigger “another mandatory divesture,” meaning RedNote would also be required to sell to an American company or face a ban in the U.S.
If it finds itself in a similar situation to TikTok’s, RedNote could presumably challenge the federal government in court, though the app’s chances would likely be dim, as TikTok was not able to successfully convince multiple courts to intervene against the law forcing its ban.
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Forbes Valuation
Qu Miranda, the president of RedNote, has an estimated net worth of $1.3 billion. She founded the company alongside CEO Charlwin Mao, helping the company secure funding from firms like Tencent and Alibaba in 2021. Qu and Miranda own an estimated 10% of RedNote.
Key Background
RedNote, owned by Shanghai-based Xingyin Information Technology, was established in 2013 with an initial valuation of $3 billion and has since raised its valuation to $17 billion following a July funding round, the Financial Times reported. The app, known as Xiaohongshu in China, climbed to the top of the App Store and Google Play Store on Monday and has maintained the No. 1 spot as of Friday, placing it above Lemon8, another social media app created by TikTok developer company ByteDance. Some American users on RedNote have referred to themselves as “TikTok refugees,” according to The Verge, which noted the app contains content such as short-form videos, pictures and text posts that have been likened to the format of Instagram. RedNote has 300 million active daily users and was slated to surpass $1 billion in profit as of mid-December, according to Bloomberg.
What Led To Tiktok’s Likely Ban?
President Joe Biden signed the bill forcing TikTok’s sale or ban back in April after bipartisan concern over the app’s data privacy measures and its potential impact on national security. ByteDance has denied allegations it has spied on the American public while the federal government has yet to publicly disclose the evidence behind the claims about TikTok’s alleged national security threats. However, TikTok has admitted to spying on Forbes journalists and was found to have mishandled user data. The Supreme Court ruled against TikTok on Friday, shooting down its argument that the ban violates its First Amendment rights. The court heard oral arguments over the law against TikTok on Jan. 10 and appeared skeptical of TikTok’s argument, with Chief Justice John Roberts arguing Congress had no issue with speech on the platform and instead was concerned with a “foreign adversary” gathering user data.
What Is Tiktok Alternative App Lemon8?
Lemon8, an app also developed by ByteDance, is a sister app to TikTok and has similar features. It reached the top of the App Store early this month as the potential TikTok ban grew closer and was championed as an alternative to the app despite also being subject to a ban if the ban against TikTok goes into effect.
When Will The Tiktok Ban Go Into Effect?
The law forcing TikTok to divest from Bytedance or be removed from the U.S. goes into effect on Jan. 19. However, President Joe Biden said he will not enforce it on his last day in office and President-elect Donald Trump, who publicly supported TikTok in the leadup to the ban, has indicated he may take action against the law.
What Can Tiktok Users Do If The App Is Banned?
Aside from migrating to alternative social media apps, it appears TikTok users will be able to use the app even after it is pulled from app stores and internet browsers under the law. However, the app would not be able to be downloaded by new users in the U.S. and will likely become increasingly defunct without software updates and new operating systems on users’ phones. TikTok can still potentially be accessed on internet browsers by way of VPNs, virtual private networks that hide users’ locations.
Further Reading
Here’s What TikTok Users Can Do If The App Becomes Unavailable In The U.S. (Forbes)
What To Know About TikTok Alternative Lemon8—And Whether It Could Be Banned, Too (Forbes)
Supreme Court Upholds TikTok Ban—Here’s What To Know (Forbes)
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