Keep in mind Australia dropped Huawei over security concerns for their national broadband network back in 2012. China is a totalitarian regime that suppresses speech and is reeducating an entire ethnic group, possibly even forcing them into factory jobs.
So the legal argument from ByteDance actually has merit in that respect, regardless of the political debate.
To counter the parent’s comment, this sounds like something a totalitarian state would do
Maybe we should just stop doing business with Saudi Arabia too, is that your point? No more Saudi Arabia oil for the U.S. or even all of the western world? In fact they're still treated as a U.S. ally.
The foreign aid of high income countries (US, EU, etc.) is always used to prop up autocratic governments for resource extractions. It's how high income states enforce autocratic policies outside their borders, in order to keep their citizens happy with cheap oil and cheap plastic crap.
Failing that, however, considering the two options for global social networks are precisely limited to
a) there are no global social networks b) there are global social networks but only ones that are directly controlled by the CCP
I'm pretty alright with a).