Charlwin Mao, founder of RedNote that welcomes ‘TikTok refugees’

When Stanford Chinese student Charlwin Mao was thinking of a name for his startup in 2013, he settled on Xiaohongshu, which translates to “Little Red Book”.

It was about the color of his famous university and his former employer, Bain Capital, two places of US capitalism.

However, this week, his choice of name has been the focus of the internet conspiracy that the app is named after a collection of quotes by Chairman Mao Zedong, which some translate as the “Little Red Book”.

Xiaohongshu, a popular social media app in China, was not known abroad until the existing ban on TikTok in the United States led to an unexpected implementation. increase in American users. They call Xiaohongshu, which has no official English name, RedNote.

Last year, US lawmakers passed legislation that would have banned TikTok unless its Chinese owner, ByteDance, waived the regulation, saying it threatened national security. The decision of the Supreme Court to support the law It means TikTok faced a ban in the US on Sunday, limiting access for the 170 million Americans who spend billions of dollars on the app.

Ironically, the Chinese social media app, which is subject to strict content control regulations and policed ​​by Beijing’s powerful internet censors, has become the beneficiary of Washington’s efforts to block another social media app. China has made netizens happy.

But for Mao, there is no relationship with Chairman Mao, it is not funny. He operates in a sensitive regulatory environment where authorities do not look kindly on any breach of the Great Firewall – the digital divide that separates China’s online population from the outside world.

Xiaohongshu has responded to its newfound popularity in America by rushing to improve its content management system. The co-founder and chief executive, who has been in the news spotlight he actively 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 giants such as Baidu, Alibaba and Tencent.

While at Stanford Business School, he pitched to invest in an online lifestyle company.

The initial funding came from US and Chinese backers ZhenFund, GSR Ventures and what was then called GGV Capital. He and co-founder Miranda Qu, a fellow Wuhan native and marketing executive, tested several ideas, including a travel guide for Chinese tourists.

They eventually settled on a photo-sharing app focused on lifestyle. Mao later won the backing of Tencent and Alibaba, a rare achievement from a rival. Both invested to prevent another from start to finish.

According to figures provided to investors, Xiaohongshu has more than 300mn active users who rely on it for restaurant tips, travel ideas and beauty tips. That number will be higher after this week. It’s an important way for consumer brands to reach consumers through sponsored posts and influencers.

Those close to Mao call him a smooth operator, well-versed in Chinese and American business — skills honed during his time at Bain Capital.

“There are two types of typical Chinese tech entrepreneurs. One is the goofy type, who wears t-shirts and trainers and is shy when speaking in public. The other is the type of a hardened wolf warrior who barks orders at those around him,” said one veteran.

“You are not there. He has the best fashion sense among all the founders of Chinese technology. He is speaking in the eloquent manner of the Wall Street elite,” they added.

Visitors to Xiaohongshu’s headquarters in Shanghai are met with a reflection of the online community. Unlike many stiff corporate offices in China, it’s filled with fun houseplants, hip coffee carts and a stage for influencers to shoot videos.

On Fridays, employees bring dogs and cats into the office, part of an old Mao tradition that has encouraged “making people feel at home”, said one employee. The use of corporate domain names ensures informality. Mao adopted the moniker Seiya, a Japanese anime hero, while Qu was named after the fictional character Mulan.

Despite the trappings of a progressive work environment, Xiaohongshu still has the kind of extreme work culture common to Chinese tech companies. Mao is known to talk to prospective tenants late at night, showing his commitment. Some point to high employee turnover as evidence of burnout.

This week, the staff worked harder than ever. Along with the challenge of ensuring adequate data center capacity, there is the prospect of playing host to a unique exchange between US and Chinese users.

Many are happy to see better coordination at a time of fraying global political ties. The observation has also attracted interest from those who want to buy Xiaohongshu’s stake at an enhanced price of $20bn, according to two investors.

However, others point out that Beijing is unlikely to tolerate Chinese internet users being exposed to more western content. Although, in the US, the same lawmakers who want to ban TikTok may make Xiaohongshu their next target. Due to the strained relations between the two countries, Xiaohongshu’s time in the world is likely to be short-lived.

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

Additional reporting by Wenjie Ding and Nian Liu in Beijing