Introduction: The TikTok Refugee Movement and the Emergence of a New Digital Opportunity
Recent developments surrounding TikTok in the United States have sparked an unexpected and intriguing shift in digital user demographics. In January 2025, the potential ban of TikTok’s service in the U.S. led to a significant migration of American users seeking alternative platforms. Among these, China’s domestic lifestyle social media app, Xiaohongshu (Little Red Book), stood out as an unexpected haven. Thousands of American users, identifying themselves as TikTok Refugees, embraced the platform, forging a cultural connection that few anticipated. Although TikTok’s service was eventually restored in the U.S., this movement opened a new gateway. For the first time, a considerable number of Western creators experienced the dynamic and interactive nature of China’s digital ecosystem firsthand.
For many, what started as a temporary exploration may develop into a sustainable business opportunity. China’s expansive consumer market, coupled with the high engagement levels on platforms like Xiaohongshu, offers a promising landscape for foreign artists, influencers, and brands. However, transitioning from a casual user to a commercial operator in China involves more than just switching platforms; it means entering one of the world’s most intricate and strictly regulated legal frameworks.
Unlike the relatively open digital environments common in the West, China’s internet space is governed by a comprehensive set of regulations aimed at safeguarding national security, cultural integrity, and economic stability. For foreign creators and businesses eager to capitalize on the TikTok Refugee momentum and establish a presence in China, a thorough understanding of the legal landscape is essential—it is the foundation for success. This guide seeks to clarify the primary legal considerations for foreign entities involved in live streaming and content creation in China, with particular emphasis on intellectual property rights, immigration compliance, and content regulation.
I. Regulatory Requirements: Licensing and the Distinct Status of Foreign Performers
The first essential step for any entity aiming to engage in online performance activities in China is obtaining the necessary administrative licenses. Under Chinese law, live streaming is classified as network performance business activities, which subjects it to regulatory oversight as outlined in the Interim Provisions on the Administration of Internet Culture. For domestic performers, the entry process is relatively straightforward. Typically, individuals need only to register their real identity with the platform and comply with its community guidelines. The platform itself, acting as the network performance business unit, is responsible for holding the Network Culture Operation License and overseeing content management.
In contrast, foreign performers face a more stringent regulatory framework. Chinese authorities exercise tighter control over non-domestic artists due to concerns about cultural influence and the management of foreign content within domestic networks. According to Article 10 of the Measures for the Administration of Online Performance Business Operations, network performance business units must obtain prior approval before opening performance channels for foreign performers, including those from Hong Kong, Macao, and Taiwan. This means foreign artists cannot simply register on an app, verify their passport, and start broadcasting commercially. The hosting platform is legally required to apply to the Ministry of Culture and Tourism for approval before the foreign performer’s channel goes live. This application involves a thorough review of the performer’s background, planned content, and the platform’s compliance measures.
For foreign enterprises or independent artists wishing to broadcast on platforms such as Xiaohongshu, this creates a dependency on the platform’s compliance processes. Without the platform securing the necessary approval, any commercial activity by the foreign artist is unauthorized and may lead to the immediate suspension of the channel. Unlike domestic performers, who have a ten-day grace period to register after beginning their activities, foreign performers must obtain approval in advance—there is no option for retroactive authorization.
II. Immigration Considerations: Work Visas and Employment Permits
A common and risky misconception among foreign influencers is the belief that earning income online while physically present in China does not constitute work and therefore does not require employment visas. This misunderstanding can have serious consequences. Chinese immigration law broadly defines work. The Exit and Entry Administration Law of the People’s Republic of China states that any foreigner engaging in income-generating activities within China—including live streaming for profit, brand endorsements, e-commerce sales via broadcast, and receiving fan donations—is considered to be working.
If a foreign artist enters China on a tourist (L) or business (M) visa and engages in commercial live streaming, they are violating the visa terms and engaging in illegal employment. Penalties can be severe, including fines, detention, deportation, and bans on re-entry for five to ten years. Additionally, the organizations facilitating such illegal employment—whether Multi-Channel Network (MCN) agencies, Chinese trading companies, or platforms—may face substantial administrative fines and potential criminal charges.
Therefore, foreign artists intending to reside in China for live streaming must obtain a Work (Z) Visa along with the corresponding Work Permit and Residence Permit. This process generally requires sponsorship from a legally registered Chinese entity, such as an MCN agency or media company. The sponsor must demonstrate that the foreign artist has unique skills or qualifications not readily available in the local labor market, often evidenced by international recognition or specialized expertise in digital content creation. For foreign companies sending employees to China to manage live streaming operations or serve as brand ambassadors, it is critical to ensure these individuals have the appropriate visa classification. Relying on short-term business visas for ongoing broadcasting activities poses significant compliance risks, and Chinese immigration authorities are increasingly enforcing these regulations.
III. Content Governance and Expression Boundaries
China’s digital landscape operates under a stringent content compliance framework. The internet is regarded not only as a commercial platform but also as a public space with significant social and political importance. As a result, the range of prohibited content is considerably broader than in many Western countries. Foreign artists must carefully navigate a complex set of red lines. According to the Cybersecurity Law and the Provisions on the Governance of the Online Information Content Ecosystem, content is prohibited if it:
- Contradicts the fundamental principles of the Constitution;
- Threatens national security, reveals state secrets, subverts state power, or undermines national unity;
- Promotes terrorism or extremism;
- Incites ethnic hatred or discrimination;
- Spreads rumors, disrupts economic order, or disturbs social stability;
- Contains pornography or obscenity; or
- Violates the legitimate rights and reputation of others.
For Western creators accustomed to free speech norms, this requires a significant adjustment. Topics that might be considered standard political commentary or social satire in the U.S. or Europe can pose legal risks in China. This includes not only direct political criticism but also discussions of sensitive geopolitical or historical matters. Additionally, the Code of Conduct for Online Anchors, issued by the National Radio and Television Administration and the Ministry of Culture and Tourism, places positive responsibilities on anchors. They are expected to promote socialist core values, spread positive messages, and contribute to a healthy online environment.
When live streaming involves e-commerce—selling products directly to consumers—regulatory oversight intensifies. The Advertising Law and the E-Commerce Law strictly prohibit false advertising and consumer deception. Foreign brands and artists must ensure that any product claims made during broadcasts are supported by evidence and comply with Chinese national standards. Exaggerated claims common in Western infomercials (such as miracle cure or best in the world) can result in substantial fines and suspension of broadcasting rights.
IV. Intellectual Property Protection: Opportunities and Challenges
Intellectual Property (IP) is a critical focus area for foreign businesses and creators entering the Chinese market, presenting both risks and opportunities. While there has been a longstanding perception in the West that China is a wild west for IP infringement, this view is outdated. China’s legal environment has evolved significantly, and today it is one of the most active jurisdictions globally for IP litigation, with courts increasingly safeguarding intellectual property rights. Foreign artists face two main challenges: avoiding infringement of others’ rights and protecting their own creations.
Risk of Infringement
During live streams, the temptation to use popular music, movie clips, or famous artwork is strong. However, under China’s Copyright Law, using such content without proper licensing constitutes infringement. Chinese platforms employ advanced audio fingerprinting technology to detect unlicensed music in real time. Consequently, a foreign streamer who plays copyrighted music without authorization may have their stream interrupted or their account muted. Moreover, copyright protection in China now includes the online communication rights. This means that even if a Western song was legally purchased abroad, broadcasting it publicly to a Chinese audience online requires separate synchronization and performance licenses.
Protecting One’s Own IP
On the other hand, China offers robust legal mechanisms for foreign creators to safeguard their brands and content. Unique personas, logos, or catchphrases can be registered as trademarks in China. Copyright registration is also available for videos, graphic designs, and literary works. A key concern in live streaming is the issue of cloning, where unscrupulous parties create fake accounts using a foreign artist’s image and name to sell counterfeit products. To address this, foreign creators should proactively register trademarks in relevant categories, such as Class 35 for advertising and Class 41 for entertainment services. Additionally, the E-Commerce Law holds platforms partially accountable for IP infringements. If a rights holder submits a valid takedown notice regarding counterfeit accounts, platforms are required to act promptly or face joint liability.
The rapid cross-border flow of digital content—illustrated by the TikTok Refugee phenomenon—means that videos created in the U.S. can be copied, re-uploaded, and monetized by unauthorized users in China within minutes. Therefore, establishing a clear IP strategy before entering the Chinese market—including registering copyrights with the National Copyright Administration and trademarks with the China National Intellectual Property Administration (CNIPA)—is essential. This proactive approach is not only defensive but also a prerequisite for effective monetization. Without proper registrations, it is challenging to compel platforms to act against infringers or to seek damages through Chinese courts.
V. Taxation Responsibilities: Understanding Global Income in China
Many foreign creators may not realize that income earned within China is subject to Chinese taxation, regardless of their nationality. According to the Individual Income Tax Law of the People’s Republic of China, individuals are classified as either resident or non-resident taxpayers. A tax resident is typically someone who has stayed in China for 183 days or more within a tax year and is taxed on their worldwide income. Conversely, non-residents are taxed only on income sourced from China. For long-term content creators, such as those often referred to as TikTok Refugees, becoming a tax resident is a real possibility.
For foreign live streamers, income from platform revenue, fan gifts, and brand sponsorships is considered China-sourced income and is subject to Individual Income Tax (IIT). Tax rates are progressive, ranging from 3% to 45%, depending on the income level. Platforms like Xiaohongshu and Douyin typically serve as withholding agents, meaning they are legally required to deduct taxes before paying streamers. However, how this income is classified—either as remuneration for personal services (labor income) or business income (operating income)—can affect allowable deductions and the applicable tax rate. Failure to accurately report income or to declare earnings from direct commercial agreements conducted outside the platform but performed in China may be considered tax evasion. Chinese tax authorities have intensified audits on prominent creators to ensure compliance with tax regulations.
For foreign companies employing foreign artists, it is vital to ensure proper tax withholding and reporting. Arrangements commonly classified as Independent Contractor agreements in Western countries may be reinterpreted by Chinese tax authorities as Employment relationships, which could trigger payroll tax obligations for the employer. Given the complexity of China’s tax treaties and Double Taxation Agreements (DTAs) with various countries, seeking professional tax advice is essential to optimize tax liabilities and maintain compliance.
VI. Cross-Border E-Commerce: Entering the Chinese Market
Many foreign artists and influencers are not only content creators but also entrepreneurs aiming to sell products from their home countries to Chinese consumers. This introduces the regulatory framework of Cross-Border E-Commerce Retail Import. Unlike traditional trade, where goods are imported in bulk and cleared through customs before sale, cross-border e-commerce allows consumers to purchase products directly from overseas platforms. However, strict regulations apply. Products must be included on the Positive List of approved imports, and sellers—who may be foreign artists operating through overseas entities—must register with Chinese Customs.
The Measures of the Customs on the Supervision and Administration of Cross-Border E-Commerce Retail Imports impose significant responsibilities on sellers, including liability for product quality and safety. For example, if a foreign influencer sells cosmetics or food supplements that violate Chinese safety or cosmetic regulations, they may face administrative penalties, product destruction, and potential bans from selling on the platform. Additionally, sellers must provide clear consumer information, disclosing that products are imported directly without traditional Chinese labeling and may differ from domestic products in ingredients, labeling, or standards. The foreign artist acts as the Cross-Border E-Commerce Retail Import Operator and must implement a robust quality traceability system.
VII. Jurisdiction and Dispute Resolution
Foreign entities operating in China should be aware of potential legal disputes. Whether involving contract disagreements with Chinese MCN agencies, intellectual property infringement claims, or regulatory sanctions, understanding jurisdiction is critical. China asserts jurisdiction over acts occurring within its territory or having effects there. Under the Civil Procedure Law, Chinese courts may exercise jurisdiction over foreign defendants if contracts are performed in China or if torts occur within China. For live streamers based in Beijing, Chinese courts will almost certainly have jurisdiction over disputes related to their activities.
Enforcing foreign judgments in China can be challenging due to the absence of broad reciprocal enforcement treaties with most Western countries, though some recent exceptions exist for commercial judgments. Similarly, enforcing Chinese judgments abroad can also be difficult. Consequently, the primary forum for dispute resolution for foreign entities is typically the Chinese legal system. The Beijing Arbitration Commission (BAC) and other major arbitration bodies are popular venues for resolving commercial disputes involving foreign parties. Arbitration awards are generally easier to enforce internationally under the New York Convention compared to court judgments. Therefore, foreign entities should carefully draft dispute resolution clauses in contracts with Chinese partners, favoring arbitration seated in neutral jurisdictions or reputable Chinese arbitration commissions, rather than agreeing exclusively to foreign court litigation, which Chinese courts may not recognize.
Conclusion
The growing presence of TikTok Refugees on platforms like Xiaohongshu reflects the increasing integration of the global digital economy. China offers foreign artists and businesses access to an audience of unparalleled size and purchasing power. However, success in this market requires a thorough understanding and respect for its legal framework. Transitioning from a passive observer to an active commercial participant in China demands a strategic legal approach. From obtaining the appropriate visas and performance licenses to navigating intellectual property registration and tax compliance, the margin for error is narrowing. The era of move fast and break things has given way to one of comply and thrive.
Intellectual property protection is especially crucial, serving both as a defense and a competitive advantage. Respecting IP rights is not only ethical but foundational to building a sustainable business. China’s legal system is increasingly sophisticated, offering robust protections for those who adhere to the rules. For those considering entering the Chinese market, it is essential not to rely on assumptions or experiences from other jurisdictions. The Chinese digital landscape is unique, and professional legal counsel is not merely an expense but a vital investment in the venture’s success. By proactively engaging with the legal system—registering trademarks, reviewing contracts, and ensuring compliance—foreign creators can confidently navigate this dynamic market and transform the TikTok Refugee phenomenon into a lasting and lawful success story within the world’s most vibrant internet economy.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change and depend on specific circumstances. Foreign individuals and entities are strongly encouraged to consult qualified legal professionals specializing in Chinese law before taking any action based on the information provided.