"TikTok, owned by Chinese tech giant ByteDance, may have just figured out how to keep its platform operating in the U.S. Yet the next frontier for China's tech platforms will likely be closer to home. Xiaohongshu-known internationally as RedNote-is gaining traction across Southeast Asia as a new generation of Chinese tech firms try to expand beyond their home market. The Southeast Asian country of Malaysia is the platform's second-largest market outside of China."
"Southeast Asia has become one important testing ground for China's tech companies, offering young, mobile-savvy consumers and lighter regulatory pressure than Western markets. Experts told Fortune the country's tech firms will likely adopt a more low-key approach in Western markets like the U.S., where officials are more wary of Chinese platforms, due to concerns about data privacy and national security."
"This is most clear in the long saga over TikTok, as U.S. officials argued the platform could send U.S. user data back to Beijing, and interfere with recommended content to spread disinformation. Last month, TikTok finalized a deal to create a new U.S.-based entity of the social media app, ending the threat of a ban that has loomed over the platform since 2024."
Chinese tech firms are shifting expansion efforts toward Southeast Asia, where younger, mobile-savvy populations and lighter regulation create growth opportunities. Xiaohongshu (RedNote) is gaining users across the region, with Malaysia as its second-largest market outside China. ByteDance and Tencent are enhancing local offerings in e-sports, e-commerce, and artificial intelligence. China's digital services trade surplus rose to a record $33 billion in 2025. Concern about data privacy and national security in Western markets is spurring a quieter commercial approach there, including structural changes to address regulatory and political scrutiny.
Read at Fortune
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