That's a straw man argument and kind of a different thing entirely (moral / ethics / human rights vs corporations / entertainment) though.

Anyway while I do agree with your statement about censorship vs openness, I do think in the broader sense things need to be done about social media - that is, Tiktok is specifically singled out for being Chinese, but its target audience, addictiveness, usefulness as a propaganda tool, is very much not unique on the market. It was only after Zuckerberg and presumably the SV tech lobbyists raised the issue of Tiktok with Trump and the government that they pulled on the brakes.

But this is where the reciprocity argument comes in; US based services in China are under strict regulations and requirements, to the point where at best they can have a subsidiary in China under Chinese management. But while it's not trivial as a foreign entity to have a presence in the US either (e.g. you need to have or be a US company to be able to sell your software there), it seems more accessible and less restrictive than operating in China; in a sense this move levels the playing field.