Yes - there's a difference between a company operating in a liberal democracy (the west broadly defined) with the restrictions that entails, and a company operating under control of the CCP without such restrictions or even rule of law. There are no companies independent of the state in China.

The real threat from TikTok is not so much the collection of information (though that's a problem) - it's the way the CCP can leverage it to tune influence without users noticing (silencing Hong Kong or Uyghur related information for example).

https://stratechery.com/2020/the-tiktok-war/