Investing.com -- As the proposed U.S. ban on the popular social media app TikTok approaches, Chinese social media app RedNote has seen a surge in new users. The app, known as Xiaohongshu in China, has been attracting American and Chinese users, with more than 50,000 joining a live chat titled "TikTok Refugees" on Monday. Topics of conversation ranged from food to youth unemployment, with occasional questions about the differences in laws between China and Hong Kong.
The app's sudden popularity has been driven by American social media users looking for an alternative to TikTok, owned by ByteDance, in the days leading up to its possible ban. In just two days, over 700,000 new users joined Xiaohongshu, according to a source close to the company. The app's U.S. downloads increased by more than 200% year-over-year this week, and 194% from the previous week, as per estimates from app data research firm Sensor Tower.
Another social media app owned by ByteDance, Lemon8, saw a similar surge in downloads last month, becoming the second most-popular free app on Apple (NASDAQ:AAPL)'s App Store list on Tuesday. The app's downloads increased by 190% in December, reaching approximately 3.4 million.
RedNote, however, was caught off guard by the sudden influx of users, with sources indicating that the company is now working to moderate English-language content and develop English-Chinese translation tools. The company, unlike many Chinese social apps, maintains only one version of its app, subject to domestic moderation rules.
RedNote, valued at $17 billion, allows users to curate photos, videos, and text documenting their lives. The app has grown to become a search engine for its 300 million-plus users, offering travel tips, anti-aging creams, and restaurant recommendations. The app's sudden popularity has led to a 20% surge in the share prices of some China-listed companies that do business with RedNote, such as Hangzhou Onechance Tech Corp.
The increase in U.S. users comes ahead of the Jan. 19 deadline for ByteDance to sell TikTok or face a ban in the U.S. due to national security concerns. TikTok is currently used by about 170 million Americans, approximately half of the country’s population, and is especially popular among young people and advertisers looking to reach them.
Some users have joined RedNote as an alternative to Meta Platforms-owned Facebook (NASDAQ:META) and Instagram, and to Elon Musk’s X. Despite doubts about rebuilding their TikTok follower base on these apps, users like Brian Atabansi, a business analyst and content creator based in San Diego, California, appreciate the organic community-building aspect of TikTok.
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