Does this hurt the CCP? No. It only hurts ByteDance and its investors , which are mostly private entities; while the CCP gets to gloat that look told you, they are no better than us.
And decisions like this do help to hurt the CCP, it reduces the reach of Chinese tech companies.
In fact ByteDance already has blockbuster app killed by Chinese authorities.
And as the private investors, well, they will soon learn how the CCP works...