When Chinese student at Stanford University, Charlwyn Mao, was thinking of a name for his startup in 2013, he settled on the name Xiao Hongshu, which translates to “little red book.”
He was referring to the color of his prestigious alma mater and his former employer, Bain Capital, both bastions of American capitalism.
But this week, his choice of name became the focal point of the Internet Conspiracy theory The app is named after a collection of Chairman Mao Zedong's quotes, which some translate as “The Little Red Book.”
Xiaohongshu, a popular social media app in China, wasn't well known outside the country until the impending ban on TikTok in the US prompted an unexpected change. Increase in US users. They call Xiaohongshu, which has no official name in English, RedNote.
Last year, US lawmakers passed legislation that would ban TikTok unless its Chinese owner, ByteDance, stripped control of it, saying it threatened national security. Supreme Court decision on Adherence to the law It means TikTok will face a ban in the US on Sunday, cutting off access to 170 million Americans who spend billions of dollars on the app.
The irony is that a Chinese social media app, with strict content control regulations and under the scrutiny of Beijing's powerful internet censors, became the beneficiary of Washington's efforts to ban another Chinese-owned app, much to the delight of netizens.
But for Mao, having nothing to do with Chairman Mao, it is no laughing matter. It operates in a sensitive regulatory environment where regulators do not look kindly on any breach of the Great Firewall – the digital divide that separates Chinese internet users from the outside world.
Xiaohongshu has responded to its newfound popularity in the United States by racing to update its content moderation controls. The company's co-founder and CEO, who has been thrust into a media spotlight he vehemently avoids, has remained silent.
Mao is part of the second generation of Chinese Internet entrepreneurs who emerged in the mid-2010s to challenge the dominance of corporate giants such as Baidu, Alibaba and Tencent.
While still at Stanford Business School, he pitched a lifestyle-focused Internet company to investors.
Early funding came from American and Chinese backers, such as ZhenFund, GSR Ventures, and what was then called GGV Capital. He and co-founder Miranda Zhu, a Wuhan native and marketing executive, tested a few ideas, including a travel guide for Chinese tourists.
They finally settled on a photo-sharing app that focuses on lifestyle content. Mao later gained the support of both Tencent and Alibaba, a rare feat from arch rivals. They both invested To prevent the other From getting a start.
According to figures provided to investors, Xiaohongshu has more than 300 million active users who rely on it for restaurant tips, travel ideas, and beauty tips. This number will be higher after this week. It's an essential channel for consumer brands to reach shoppers via sponsored posts and influencers.
Those close to Mao describe him as a smooth operator, good at managing Chinese and American businesses – skills he honed during his time at Bain Capital.
“There are two types of typical Chinese tech entrepreneurs. One is the geek type who wears T-shirts and sneakers and feels shy when speaking in public. The other is the hardened wolf warrior type who barks orders at the people around him,” one employee said a while ago. Long.
“Mao is not that. He has the best fashion sense of all the Chinese tech founders. He speaks with the clarity of the Wall Street elite,” they added.
Visitors to Xiaohongshu's Shanghai headquarters encounter a physical manifestation of its online community. In contrast to most strict Chinese corporate offices, it is filled with glamorous houseplants, trendy coffee carts, and a platform for influencers to shoot videos.
On Fridays, employees bring dogs and cats into the office, part of a long-standing tradition encouraged by Mao to “create a feeling of home,” as one employee said. The use of corporate titles enhances the informal atmosphere. Mao adopted the nickname Seiya, the Japanese anime hero, while Chu was named after the historical folk heroine Mulan.
Despite the trappings of a progressive work environment, Xiao Hongshu still has the kind of extreme work culture common to Chinese tech companies. Mao is known to interview potential employees late at night, indicating the commitment he expects. Some point to high employee turnover as evidence of burnout.
This week, employees worked harder than ever. Besides the challenge of ensuring sufficient data center capacity, there is a unique exchange hosting sensitivity between American and Chinese users.
Many are happy to see the good relationship at a time when geopolitical relations are deteriorating. The interest has also attracted interest from those looking to buy a stake in Xiao Hongshu at a boosted valuation of $20 billion, according to two investors.
However, others point out that Beijing is unlikely to tolerate Chinese internet users being exposed to more Western content. While in the US, the same lawmakers who want to ban TikTok could make Xiaohongshu their next target. Given the tense relations between the two countries, Xiao Hongshu's moment of global popularity may be short-lived.
eleanor.olcott@ft.com, zijing.wu@ft.com
Additional reporting by Wenjie Ding and Nian Liu in Beijing
