Xiaohongshu’s biggest shareholders are in talks to sell shares in the Chinese Instagram-like service at a valuation of at least $20 billion, drawing interest from Tencent Holdings Ltd. and other big names as a potential TikTok US ban approaches.

Ahead of the possible TikTok ban, "TikTok refugees" are flocking to the Chinese social media app Xiaohongshu, or Red Note, with strange and fascinating consequences.

According to a report by IThome on Tuesday, major shareholders at Xiaohongshu (also known as RedNote) are in talks to sell part of their holdings. The

(Reuters) -Backers of China's Xiaohongshu are looking to sell a part of their stake to the likes of Tencent, among others, in a deal that could value the TikTok-rival at at least $20 billion, Bloomberg News reported on Thursday.

On the heels of TikTok's looming shutdown on January 19 over its ownership in the U.S. (unless the Supreme Court intervenes), it looks like another American users are flocking to a Chinese app called Xiaohongshu as people become less optimistic that TikTok can overturn U.

The US Supreme Court is due to rule on Protecting Americans from Foreign Adversary Controlled Applications Act that stipulates TikTok must be divested from its Chinese parent company ByteDance by Sunday or face a ban in the US on the pretext of "national security" concerns.

While the United States decides whether to ban the platform, China must manage the flood of Western users on its alternative, the Little Red Book where there’s fun to be had with cultural crossover

RedNote was launched in China in 2013 and has registered 300 million monthly active users.The RedNote app is currently valued at $17 billion.

As TikTok’s days appear to dwindle in the United States, a chunk of the platform’s audience is flocking to the Chinese social media app, Xiaohongshu, known in English as RedNote. The migration has pushed the platform to the top of U.S. app download charts.

Americans have shown that they won’t take national security threats at face value. They want the details. Lawmakers reportedly gathered for a top-secret briefing on the risks posed by TikTok before voting in favor of the bill back in March. At the time, the protestors outside Capitol Hill who opposed the ban were not made privy to its findings.

With a possible TikTok ban just days away, many U.S. users are looking for alternative social media platforms to help them keep up with pop culture or provide the type of entertaining videos that popularized the short-form video app.