Lemon8, a photo-sharing app by Bytedance, and RedNote, a Shanghai-based content-sharing platform, have seen a surge in popularity within the U.S. as “TikTok refugees” migrate to various platforms forward of a possible ban.
Now a legislation that might see TikTok shut down within the U.S. threatens to ensnare these Chinese social media apps, and others gaining traction as TikTok-alternatives, authorized specialists say.
As of Wednesday, RedNote — often called Xiaohongshu in China — was the highest free app on the U.S. iOS retailer, with Lemon8 taking the second spot.
The U.S. Supreme Court is ready to rule on the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, that might result in the TikTok app being banned within the U.S. if its Beijing-based proprietor, ByteDance, would not divest it by Jan. 19.
While the laws explicitly names TikTok and ByteDance, specialists say its scope is broad and will open the door for Washington to focus on extra Chinese apps.
“Chinese social media apps, together with Lemon8 and RedNote, may additionally find yourself being banned beneath this legislation,” Tobin Marcus, head of U.S. coverage and politics at New York-based analysis agency Wolfe Research, advised CNBC.
If the TikTok ban is upheld, it will likely be unlikely that the legislation will permit potential replacements to originate from China with out some type of divestiture, specialists advised CNBC.
PAFACA routinely applies to Lemon8 as it is a subsidiary of ByteDance, whereas RedNote may fall beneath the legislation if its month-to-month common consumer base within the U.S. continues to develop, stated Marcus.
The laws prohibits distributing, sustaining, or offering web internet hosting providers to any “overseas adversary managed utility.”
These purposes embody these linked to ByteDance or TikTok or a social media firm that’s managed by a “overseas adversary” and has been decided to current a big menace to nationwide safety.
The wording of the laws is “fairly expansive” and would give incoming president Donald Trump room to resolve which entities represent a big menace to nationwide safety, stated Carl Tobias, Williams Chair in Law on the University of Richmond.
Xiaomeng Lu, Director of Geo‑expertise at political threat consultancy Eurasia Group, advised CNBC that the legislation will possible prevail, even when its implementation and enforcement are delayed. Regardless, she expects Chinese apps within the U.S. will proceed to be the topic of elevated regulatory motion shifting ahead.
“The TikTok case has set a brand new precedent for Chinese apps to get focused and probably shut down,” Lu stated.
She added that different Chinese apps that might be impacted by increased scrutiny this yr embody widespread Chinese e-commerce platform Temu and Shein. U.S. officers have accused the apps of posing data risks, allegations similar to those levied against TikTok.
The destiny of TikTok rests with Supreme Court after the platform and its guardian firm filed a go well with towards the U.S. authorities, saying that invoking PAFACA violated constitutional protections of free speech.
TikTok’s argument is that the legislation is unconstitutional as utilized to them particularly, not that it’s unconstitutional per se, stated Cornell Law Professor Gautam Hans. “So, no matter whether or not TikTok wins or loses, the legislation may nonetheless probably be utilized to different firms,” he stated.
The legislation’s outlined purview is broad sufficient that it might be utilized to a wide range of Chinese apps deemed to be a nationwide safety menace, past conventional social media apps within the mildew of TikTok, Hans stated.
Trump, in the meantime, has urged the U.S. Supreme Court to carry off on implementing PAFACA so he can pursue a “political decision” after taking workplace. Democratic lawmakers have additionally urged Congress and President Joe Biden to extend the Jan. 19 deadline.
