What the law absolutely does do is make "Chinese Ownership" an existential risk to companies with software products with large numbers of US users. Riot, Epic et. al. will be strongly incentivised to get their PRC shareholders to divest, and in the future other companies will be disincentivized from accepting that kind of investment.
And surely that's intentional.
Abuse of power in a nutshell.
Anything they sell just gives them more money to buy more ownership.
Provided they have more than 1 million MAU (which they do, obviously). The president would also have to affirmatively ban it and report to Congress about the specific threat that company poses, and what assets need to be divested. TikTok is the only company written into the bill by Congress that doesn't require affirmative action by the president, or the report.
> the law very likely could be weaponized by the CCP to get things banned that they don't even own yet
Only if the president believes they should be banned.
It is much, much broader than a 'tiktok ban', it applies to any company that fits that criteria. So to put it bluntly, if the CCP bought 20% of reddit, reddit can't be distributed, maintained or updated by any US company. It's not just a ban, it simply won't exist on the internet for US users.
There are probably a bunch of companies that will be subject to this if it's upheld in court, and the law very likely could be weaponized by the CCP to get things banned that they don't even own yet. It'll also likely result in Chinese interests devesting down to >20% from US companies that they do not want banned, for much the same reasons.
Basically, this is the result of a bunch of tech-illiterate politicians who have no idea how any of this works, passing a law that looks good in news headlines without regard to the potential consequences. So business as usual on the hill.