Because it’s bad if China has the information. It’s fine if “US entity” had the information. The ban is ultimately fake. No one banning the app cares about TikTok, they just hate that China is getting the information they want. What will happen is some US based company, Oracle last time, but someone like that will buy a sufficient enough stake in the company and the ban will not happen. It will be declared “safe” and the data will go to a US controlled entity, but also still secretly to China. (The later will be revealed years later, to the shock of no one.)
Because it’s bad if China has the information. It’s fine if “US entity” had the information. The ban is ultimately fake. No one banning the app cares about TikTok, they just hate that China is getting the information they want. What will happen is some US based company, Oracle last time, but someone like that will buy a sufficient enough stake in the company and the ban will not happen. It will be declared “safe” and the data will go to a US controlled entity, but also still secretly to China. (The later will be revealed years later, to the shock of no one.)
They already have a condition of “sell to an American entity or shut it down”