Lemon8, a photo-sharing app from Bytedance, and RedNote, a Shanghai-based content sharing platform, saw Increase in popularity In the US where “TikTok refugees” are migrating to alternative platforms ahead of a potential ban.
A law that could lead to TikTok being shut down in the US now threatens to ensnare these Chinese social media apps, and others are gaining traction as TikTok alternatives, legal experts say.
As of Wednesday, it's RedNote — known as Xiaohongshu in China — It was the top free app on the US iOS Store, with Lemon8 taking second place.
The US Supreme Court is scheduled to rule on its constitutionality Protecting Americans from Foreign Controlled Applications Actor PAFACA, could lead to TikTok being banned in the United States if its Beijing-based owner, ByteDance, does not divest it by January 19.
While the legislation explicitly mentions TikTok and ByteDance, experts say its scope is broad and could open the door for Washington to target additional Chinese apps.
“Chinese social media apps, including Lemon8 and RedNote, could end up being banned under this law,” Tobin Marcus, head of US politics and policy at New York-based research firm Wolfe Research, told CNBC.
If the TikTok ban is upheld, the law is unlikely to allow potential alternatives to emerge from China without some form of divestment, experts told CNBC.
Marcus said PAFACA automatically applies to Lemon8 because it is a subsidiary of ByteDance, while RedNote could fall under the law if its average monthly user base in the US continues to grow.
The legislation prohibits the distribution, maintenance, or provision of Internet hosting services for any “foreign adversary-controlled application.”
These apps include those linked to ByteDance, TikTok, or a social media company controlled by a “foreign adversary” and identified as posing a significant national security threat.
The language of the legislation is “very expansive” and will give incoming President Donald Trump latitude to identify entities that pose a significant national security threat, said University of Richmond Law Department Chair Carl Tobias.
Xiaoming Lu, director of geotechnology at political risk advisory group Eurasia Group, told CNBC that the law is likely to prevail, even if its implementation and enforcement are delayed. Regardless, it expects Chinese apps in the US to remain the subject of increased regulatory action in the future.
“The TikTok case has set a new precedent for Chinese apps being targeted and potentially shut down,” Lu said.
She added that other Chinese applications could be affected Increased scrutiny This year includes popular Chinese e-commerce platforms Temu and Shein. US officials accused the apps of Subtract data risksallegations Similar to those imposed on TikTok.
The fate of TikTok rests with the Supreme Court after the platform and its parent company foot Sued the US government, saying that enacting PAFACA violated constitutional protections for free speech.
TikTok's argument is that the law is unconstitutional as applied to them specifically, not that it is unconstitutional per se, said Cornell University law professor Gautam Hans. “So, regardless of whether TikTok wins or loses, the law can still be applied to other companies,” he said.
Hans said the scope of the specific law is broad enough that it could apply to a variety of Chinese apps deemed a threat to national security, beyond traditional social media apps in the TikTok mold.
Meanwhile, Trump did just that The US Supreme Court urged To postpone the implementation of PAFACA so that he can pursue a “political solution” after taking office. Democratic lawmakers also urged Congress and President Joe Biden to do so Deadline extended to January 19.
