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It referenced the color of his prestigious college and his former employer, Bain Capital, each bastions of US capitalism.
This week, nonetheless, his selection of title grew to become the focus of an internet conspiracy theory that the app was named after a compilation of Chairman Mao Zedong’s quotations, which some translate as “Little Purple E-book”.
Xiaohongshu, a preferred social media app in China, was not well-known outdoors the nation till an impending ban on TikTok in the US led to an surprising surge in American users. They’re calling Xiaohongshu, which doesn’t have an official English title, RedNote.
Final 12 months, US lawmakers handed laws that might ban TikTok except its Chinese language proprietor, ByteDance, divested management, saying it threatened nationwide safety. The Supreme Court docket’s choice to uphold the law means TikTok faces a ban in the US on Sunday, chopping off entry for 170mn Individuals who spend billions of {dollars} on the app.
The irony {that a} Chinese language social media app, with strict content material management laws and policed by Beijing’s highly effective web censors, has turn into the beneficiary of Washington’s effort to ban one other Chinese language-owned app has delighted netizens.
However for Mao, no relation to Chairman Mao, it’s no laughing matter. He operates in a delicate regulatory setting the place regulators don’t look kindly on any breach of the Nice Firewall — a digital divide that separates China’s on-line inhabitants from the outdoors world.
Xiaohongshu has responded to its newfound US reputation by racing to replace content material moderation controls. Its co-founder and chief govt, thrust right into a media highlight that he actively avoids, has remained silent.
Mao is a part of a second era of Chinese language web entrepreneurs who emerged in the mid-2010s to problem the dominance of giants corresponding to Baidu, Alibaba and Tencent.
Whereas nonetheless at Stanford Enterprise College, he pitched to traders an web firm that centered on way of life.
Early funding got here from US and Chinese language backers, ZhenFund, GSR Ventures and what was then known as GGV Capital. He and co-founder Miranda Qu, a fellow Wuhan native and advertising and marketing govt, examined out a number of concepts, together with a journey information for Chinese language vacationers.
They lastly settled on a photo-sharing app specializing in way of life content material. Mao later gained the backing of each Tencent and Alibaba, a uncommon achievement from the arch-rivals. Each invested to prevent the other from buying the start-up.
Based on figures offered to traders, Xiaohongshu has greater than 300mn energetic customers who depend on it for restaurant suggestions, journey concepts and wonder recommendation. That determine can be larger after this week. It’s a necessary conduit for shopper manufacturers to succeed in buyers through sponsored posts and influencers.
These near Mao name him a clean operator, fluent in Chinese language and American enterprise — abilities honed throughout his time at Bain Capital.
“There are two sorts of typical Chinese language tech entrepreneurs. One is the nerdy sort, who wears T-shirts and trainers and is shy when talking in public. The opposite is the battle-hardened wolf warrior sort who barks orders at individuals round them,” stated one longtime worker.
“Mao is neither. He has the finest vogue sense amongst all Chinese language tech founders. He speaks with the readability of a Wall Avenue elite,” they added.
Guests to Xiaohongshu’s Shanghai headquarters are met with a bodily manifestation of its on-line neighborhood. In distinction to most austere Chinese language company workplaces, it’s stuffed with luscious houseplants, hip espresso carts and a stage for influencers to shoot movies.
On Fridays, employees convey canines and cats into the workplace, a part of a long-standing custom Mao instigated to “create a house feeling”, stated one worker. Using company nicknames reinforces the casual ambiance. Mao adopted the moniker Seiya, a Japanese anime hero, whereas Qu was named after the historic people heroine Mulan.
Regardless of the trappings of a progressive work setting, Xiaohongshu nonetheless has the form of excessive work tradition widespread to China’s tech firms. Mao is understood to interview potential hires late at night time, indicating the dedication he expects. Some level to excessive employees turnover as proof of burnout.
This week, staff labored tougher than ever. Together with the problem of making certain enough information centre capability, there may be the sensitivity of taking part in host to a singular trade between American and Chinese language customers.
Many are delighted to see the good-natured connection at a time of deteriorating geopolitical ties. Consideration has additionally attracted curiosity from these trying to purchase a stake in Xiaohongshu at a boosted $20bn valuation, based on two traders.
Nonetheless, others level out that Beijing is unlikely to tolerate Chinese language web customers being uncovered to extra western content material. Whereas, in the US, the similar lawmakers that need to ban TikTok might make Xiaohongshu their subsequent goal. Given tense relations between the two international locations, Xiaohongshu’s second of worldwide reputation could also be temporary.
eleanor.olcott@ft.com, zijing.wu@ft.com
Further reporting by Wenjie Ding and Nian Liu in Beijing
