Charlwyn Mao, founder of Red Note welcomes ‘TikTok refugees’

Chinese Stanford student Charlwyn Mao

He cited the university’s venerable colors and his former employer, Bain Capital, both foundations of American capitalism.

This week, however, his choice became the focus of attention online Conspiracy theory The app is named after a collection of quotes by Chairman Mao Zedong, which some interpret as the “Little Red Book”.

Xiaohongshu, a popular social media app in China, was not well known outside the country until it was unexpectedly banned by the US TikTok. Increase in US users. They call it Xiaohongshu, which has no official English name, RedNote.

Last year, US lawmakers passed a law banning TikTok until its Chinese owner, ByteDance, poses a national security threat. The decision of the Supreme Court Enforce the law That means TikTok was banned in the US on Sunday, cutting off access to the 170 million Americans who spend billions of dollars on the app.

A Chinese social media app that has strict content control rules and is controlled by Beijing’s powerful internet censors has benefited from Washington’s efforts to block another Chinese-owned app.

But Mao has nothing to do with Chairman Mao, it’s no laughing matter. It operates in a regulatory environment where regulators don’t take kindly to any breach of the Great Firewall – the digital divide that separates China’s online population from the outside world.

Xiaohongshu responded to the new American popularity by rushing to update content moderation controls. His co-founder and CEO stepped in, the media spotlight he actively avoids, silent.

Mao is part of the second generation of Chinese Internet entrepreneurs who emerged in the mid-2010s to challenge the dominance of 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 US and Chinese backers, ZenFund, GSR Ventures and then GGV Capital. He and co-founder Miranda Ku, a Hanhan native and marketing executive, have tried a few ideas, including a travel guide for Chinese tourists.

Finally settled on a photo sharing app that focuses on lifestyle content. Mao later secured the backing of both Tencent and Alibaba, a rare feat from alliance rivals. Both have invested To protect the other From getting the start.

According to figures provided to investors, Xiaohongshu has more than 300 million active users who are trusted for restaurant recommendations, travel ideas and beauty tips. This figure will be higher later this week. It is an important conduit for consumer brands to reach consumers through sponsored posts and influencers.

Those close to Mao call him a smooth operator fluent in Chinese and American business — skills he mastered during his time at Bain Capital.

“There are two types of typical Chinese tech entrepreneurs. One is the nerdy type who wears a t-shirt and trainers and is embarrassed to speak in public. Another is a battle-hardened wolf warrior type who shouts orders at those around them,” said a longtime employee.

“Mao is not like that. He has the best fashion sense of all the Chinese tech founders. He speaks with the clarity of the Wall Street elite,” he added.

Visitors to Xiaohongshu’s Shanghai headquarters will encounter the physical manifestation of the online community. Unlike most austere Chinese corporate offices, it’s filled with beautiful indoor plants, hip coffee carts and a stage for influencers to shoot videos.

On Fridays, employees bring dogs and cats into the office, part of a long-standing tradition that Mao encouraged to “create a sense of home,” one employee said. The use of corporate nicknames reinforces the informality. Mao adopted the Japanese anime hero moniker Sei, while Q was named after the historical folk hero Mulan.

Despite the trappings of a progressive work environment, Xiaohongshu still has an extreme work culture typical of Chinese tech companies. Mao is known to interview recruits late at night, showing his commitment to waiting. Some point to high employee turnover as evidence of burnout.

This week the crew worked harder than ever. Along with the challenge of ensuring adequate data center capacity, there is the sensitivity of playing host to special exchanges between US and Chinese users.

At a time when geopolitical ties are on the decline, many are happy to see a good-natured connection. Attention has attracted interest from people looking to buy shares in Xiaohongshu at a high valuation of $20 billion, two investors said.

However, others have suggested that Beijing is less tolerant of Chinese internet users being exposed to Western content. In the US, the same lawmakers who want to ban TikTok may make Xiaohongshu their next target. Given the tension between the two countries, Xiaohongshu’s period of international popularity may be short-lived.

eleanor.olcott@ft.com, zijing.wu@ft.com

Additional reporting by Wenjie Ding and Nian Liu in Beijing