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The US should simply mirror the types of controls placed on US-companies by the CCP, force them to promote anti-Chinese/pro-US content and censor pro-China/anti-US content, as well as to curb the reach of content discussing divisive/controversial topics that pit Americans against each other.

If they decide to close shop after that you would achieve the same goal while publicly demonstrating what their true motives have always been.

No, they should adopt tight privacy laws and fine the crap out of companies that violate them. Right to be forgotten etc.
When you are talking about adversarial state actors the incentives are completely different, the rules should reflect this.
Tiktok doesn't operate in a vacuum. They have US advertisers and pay US content creators. You can very well impose drastic fines and make it very difficult to make any money in the US if they violate privacy laws. You also have Google and Apple that are US based and have to ability to audit these apps.
I don't think privacy is the main concern, it's what kind of content is being pushed/censored, but even if it were even drastic fines are probably not enough to dissuade privacy violations if the CCP decides it wants the data. Plus, how are you ever going to even find out in the first place?
How is turning ourselves into the problem anything but bad.
More of a thought experiment/illustration of the problem. I am pretty sure even if they attempted this it would be struck down in court.
The bill's acronym is the ANTI-SOCIAL CCP act. Amazing name!
Who better than the US government to understand how social media can be used to manipulate the masses to support a specific agenda. Or maybe we're different :)