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Let’s be honest: It’s because no US company, and therefore no US politicians, get a dime.
It's because China is a hostile power who openly abuses its power to use tech to abuse its citizens, and the way their government works, has far more control over companies in their country than most of the rest of the world. Citizens are at much greater risk with their data on Chinese servers than they are with their data on US servers. It's not that complicated. China outright requires everything to stay in China in the reverse case.
Should they also regulate data collection generally? Absolutely. But TikTok is different.