In a decisive move on Thursday, Taiwan declared a one-year ban on the Chinese social media platform Xiaohongshu, citing significant fraud risks associated with the app.

The interior ministry issued a statement announcing the prohibition, highlighting the platform’s potential as a “high-risk area for online shopping fraud.” Xiaohongshu, also known internationally as Rednote, will be blocked from access within Taiwan.

According to the ministry, Xiaohongshu has been implicated in approximately 1,700 fraud incidents, leading to financial damages exceeding 247.7 million New Taiwan dollars, or about $7.9 million, since 2024. The platform reportedly has a user base of over 3 million in Taiwan.

Taiwanese officials have expressed concerns over the challenges faced by local law enforcement in gathering crucial information, given Taiwan’s lack of jurisdiction over the company.

The interior ministry noted that Xiaohongshu failed all 15 cybersecurity criteria established by the National Security Bureau, which further prompted the ban.

During a press conference on Thursday, Deputy Minister of the Interior Ma Shih-yuan confirmed that Taiwan’s internet service providers have been directed to block access to the app.

The ministry also urged international platforms such as Google to “completely cease publishing Xiaohongshu advertisements.”

Authorities reminded the public not to download the app or stop using it if already installed.

In a Facebook post, Cheng Li-wun, chairwoman of the opposition Kuomintang party, said the move “significantly [restricts] Internet freedom,” and described the ban on Xiaohongshu as “a starting-point for building the Great Wall of the Internet,” by the ruling Democratic Progressive Party.

Xiaohongshu, Apple and Google did not immediately respond to CNBC’s request for comments.

In 2022, Taiwan banned Xiaohongshu from government devices, calling it a “united front” for Chinese propaganda.

Earlier this year, Taiwan sent a letter to Xiaohongshu’s parent company, Xingyin Information Technology (Shanghai), seeking “concrete improvement measures,” but the company did not reply.

Xiaohongshu is widely used in China and saw renewed interest in the U.S. earlier this year after a proposed ban on its competitor TikTok. That prompted TikTok users to flock to Xiaohongshu, adding roughly 700,000 new users to the platform, according to Reuters.

— CNBC’s Anniek Bao contributed to this report.