Imagine blocking TikTok for being a competitor in a so called free market under the guise of national security and privacy
They didn't blink an eye when Facebook had to testify about blatantly abusing COPPA and doing the exact same thing.
And not even the platform itself, just the company so it can be liquidated or sold to an American megacorp so it can make money for the poor shareholders and let the NSA do their funny PRISM plugin.
Americans are the most propagandized people on earth. They'll kick and scream about Chinese Censorship, then accuse a Singapore CEO of being a Chinese Communist and pass legislation to Censor an American company because it took money from Chinese investment group ages ago.
The company is allowed to operate under different ownership. It's pretty simple, and makes a lot of sense for the nation's interests given the amount of hostility from China.