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. Other Chinese tech giants, like ByteDance and Tencent, are also boosting the nation’s digital offerings in the realms of e-sports, e-commerce and artificial intelligence.
In 2025, China’s trade surplus from digital services jumped to a record high of $33 billion, according to data from the State Administration of Foreign Exchange.
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.
