Rednote Gains 700K Users in 2 Days as US Downloads Surge 200% Amid TikTok Ban Talks

As ByteDance-owned TikTok faces a complete ban in the US on 19th January, many of the 170 million Americans who use the app are switching to the lifestyle-sharing RedNote social media app as an alternative.

The RedNote app, popularly known as Xioahongshu in China, meaning "Little Red Book," is developed by Shanghai-based Xingyin Information Technology.

RedNote is a venture capital-backed startup with several similarities to TikTok, where users can curate photos, short videos, and text documenting their lives.

The social media app was valued at £16.37 billion ($20 billion) in a 2021 funding round and is a strong IPO candidate in China. It is backed by tech giants and venture capital funds like Alibaba, Tencent, and DST Global. Bloomberg reported last year that RedNote was projected to generate over £818.93 million ($1 billion) in profits for 2024.

Meanwhile, the US Supreme Court has yet to intervene on a law mandating TikTok to be divested from ByteDance by 19th January or face a ban in the country. The impending ban was imposed due to national security concerns over ByteDance's connection to the Chinese government.

RedNote Overwhelmed With Strong Influx From The US

RedNote is a popular social media app in China with over 300 million active monthly users. It is the go-to platform for millions seeking travel tips, restaurant recommendations, and an influencer culture similar to TikTok.

Research firm Sensor Tower estimated that RedNote app downloads in the US jumped over 200% year-over-year this week and a staggering 194% from the week prior. A person with knowledge of the development said the app added over 700,000 users in only two days.

The massive influx of American users has RedNote developers scrambling to devise ways to moderate content in the English language and build translation tools as the app offers a Mandarin-dominated interface.

Unlike TikTok, which has two versions of the app, Duoyin in China and TikTok for the rest of the world, RedNote has only one version, which is rare among Chinese social media apps.

Hence, RedNote has to abide by Beijing's strict moderation and censorship rules. Forbes reported that RedNote would subtly influence conversations and even flag or remove posts that addressed politically sensitive topics.

Elon Musk TikTok's New Owner?

Although the Chinese government has vehemently opposed the forced sale of TikTok's US assets to American buyers, the latest reports from Bloomberg and The Wall Street Journal indicate they could offload parts of the app's US version to Elon Musk's X platform.

The newly signed law requires ByteDance to sell TikTok to a US-based owner to avert a ban, and the Supreme Court recently hinted it would uphold the legislation, given the national security concerns.

The fast-approaching deadline and the US Supreme Court's stance could push ByteDance to hand over TikTok US to an American buyer before the app loses access to the American market. In that case, the Chinese government could approve a sale to Elon Musk, given his massive business outreach in the mainland. China is Tesla's second-largest market. Furthermore, Musk already has a Shanghai Gigafactory and is proceeding to build a major battery factory in the city.

The wealthiest person on the planet has also recently held several meetings with Chinese officials. In a meeting last year, he told Chinese Premier Li Qiang in Beijing, "Tesla is willing to further deepen cooperation with China and achieve more win-win results." Note that the Tesla owner also has the ear of President-elect Donald Trump, a connection that China could leverage in tariff negotiations.