The Red Note nonsense is just a meme, somewhat fittingly. First, because the only place you see coverage of all the "kids flocking" is... on TikTok itself. It's always a red (heh) flag when your source for big important events comes only from the affected parties.

But secondly because Red Note is subject to exactly the same regulation as TikTok, for exactly the same reason. There's no protection or loophole there, this app is just a district court injunction away from a ban too. Literally no one cares, they just love to meme.