A looming TikTok ban in the United States has triggered a wave of uncertainty, prompting social media users to seek alternatives. The app poised to benefit is Xiaohongshu, known as RedNote in English, which has climbed to the top of Apple’s free app chart as the 19 January ban deadline approaches.
RedNote, a hybrid of Instagram, TikTok, and Pinterest, boasts over 300 million monthly active users—modest compared to TikTok’s numbers but impressive in its own right.
Launched in 2013, RedNote has become a sensation in China, valued at approximately RM80 billion (USD17 billion) following a secondary share sale in 2024, with nearly RM4 billion (USD917 million) in venture funding from backers like Tencent, Alibaba, and Sequoia China.
Its rise coincides with TikTok’s legal battles against a bipartisan U.S. Congressional bill that demands the app’s American operations sever ties with its Chinese parent company, ByteDance, due to national security concerns. Federal officials allege that TikTok could unlawfully share U.S. user data with the Chinese government—claims TikTok and ByteDance vehemently deny.
Supreme Court Showdown
As TikTok challenges the ban at the Supreme Court, justices expressed doubts about the company’s First Amendment claims.
“Congress doesn’t care about what’s on TikTok,” Chief Justice John Roberts noted during oral arguments. “They’re saying the Chinese have to stop controlling TikTok.” Justice Elena Kagan concurred, pointing out that the law targets ByteDance as a foreign entity without First Amendment protections.
President-elect Donald Trump, who previously attempted to ban TikTok in 2020, has also entered the fray, seeking a politically mediated resolution upon taking office.
The Role of Xiaohongshu as a Search Engine
What sets RedNote apart is its transformation into a search engine for consumer decision-making. According to its COO, 70% of users search daily, and 42% use the search function on their first day. The platform has a vast repository of user-generated content (UGC), making it ideal for authentic reviews and recommendations.
Key insights from Xiaohongshu’s 2023 Search Engine Marketing White Paper reveal:
• 88% of searches are active, reflecting user autonomy in finding information.
• 80% of users use Xiaohongshu for initial research, trusting its authenticity over ads.
• 75% of users search for travel recommendations before making decisions.
This shift highlights consumers’ desire for human-to-human (H2H) marketing, where trust in relatable content drives decision-making.
The Human Cost of a Ban
Experts warn that a ban could devastate TikTok’s creator economy, which supports countless small businesses and influencers.
“A TikTok ban would be absolutely catastrophic for the creators and the small businesses who rely on it,” said Jess Maddox, Assistant Professor at the University of Alabama, in an interview with CNN. While creators may adapt, Maddox noted the financial and logistical struggles they would face.
Many influencers have begun transitioning to other platforms, such as Lemon8, also owned by ByteDance.
ByteDance Layoffs in Malaysia
TikTok’s parent company, ByteDance, has faced challenges elsewhere, including in Malaysia. In October 2024, ByteDance reportedly laid off more than 500 Malaysian employees, primarily involved in content moderation, citing a shift towards AI-driven moderation and restructuring efforts.
For users, creators, and even app developers, the impending TikTok ban signifies a seismic shift in the social media landscape.