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Re:ByteDance plans TikTok IPO to win U.S. deal as deadline l... by nightski on Friday September 18, 2020 @06:19PM (#24522429)
It was discovered the TikTok app was specifically gathering a lot more data from your phone than was relevant to the service at hand. This was a big thread on HN a little while back.

I do agree with your second point however.

Re:ByteDance plans TikTok IPO to win U.S. deal as deadline l... by viscanti on Friday September 18, 2020 @11:55PM (#24524871)
Sure. My point is that the data they collect isn't especially valuable given how much other data is easily accessible for a nation state. The value isn't zero but if the Chinese Government loses the data about what TikTok videos people watched they aren't going to lose any sleep over it.