Chinese Social Media Apps Face Uncertain Future Amid U.S. Regulatory Scrutiny

Chinese Social Media Apps Face Uncertain Future Amid U.S. Regulatory Scrutiny

U.S. officials are increasingly concerned about Chinese social media apps, warning they pose significant data risks similar to those associated with TikTok. The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) could lead to a ban of TikTok in the United States if its owner, ByteDance, does not divest by January 19. Meanwhile, as "TikTok refugees" seek alternative platforms, two Chinese apps, Lemon8 and RedNote, have risen in popularity within the U.S. market.

Lemon8 and RedNote have quickly climbed the ranks in the U.S. iOS store, with RedNote claiming the top spot among free apps and Lemon8 securing second place as of Wednesday. Despite their success, Lemon8 automatically falls under PAFACA's jurisdiction as a ByteDance subsidiary. RedNote could also be affected if its average monthly user base in the U.S. continues to grow. This burgeoning popularity has caught the attention of regulators who may view these platforms as potential national security threats.

"Chinese social media apps, including Lemon8 and RedNote, could also end up being banned under this law," – Tobin Marcus, head of U.S. policy and politics at New York-based research firm Wolfe Research

The U.S. Supreme Court is slated to determine the constitutionality of PAFACA, a decision that could significantly impact the future of these apps. Even though the law explicitly names TikTok and ByteDance, experts assert that its wide-ranging scope might allow Washington to target other Chinese applications as well.

"The TikTok case has set a new precedent for Chinese apps to get targeted and potentially shut down." – Xiaomeng Lu, Director of Geo‑technology at political risk consultancy Eurasia Group

If upheld, a TikTok ban would set a challenging precedent for Chinese replacements, requiring them to undergo divestiture or face exclusion from the U.S. market. Furthermore, increasing regulatory actions against Chinese apps are anticipated, with possible repercussions extending beyond TikTok due to the expansive nature of the legislation.

Democratic lawmakers have called upon Congress and President Joe Biden to consider extending the January 19 deadline for ByteDance to divest from TikTok. In contrast, former President Trump has urged the U.S. Supreme Court to delay implementing PAFACA, expressing his desire to pursue a "political resolution" if he returns to office.

"So, regardless of whether TikTok wins or loses, the law could still potentially be applied to other companies," – Cornell Law Professor Gautam Hans

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