When such godfather-like extortion becomes part of the federal government, that country soon becomes untouchable for business.
That's probably not going to be an issue unless US starts banning apps for no apparent reason (eg. forcing spotify to sell their American operations). For now the administration (regardless of their actual motives) can plausibly say that it was done in retaliation, which makes it look more acceptable to third parties.
If you owned a coffee chain across the country and some counties police took extortion money to "protect" your assets or forced you to "sell" your operations to local goons, would any other business observing this ever open more businesses in those mafioso counties?
For a big country, it isn't so bad - most people's needs can be fulfilled mostly with local services.
TikTok is pretty mild as a propaganda/influence delivery mechanism when you have fully operating mills like RT and OAN operating the US with impunity.
If someone cared about "Chinese Communist Party controlled businesses", action would be taken to address the craven and obvious money laundering of commercial real estate. That's a far more subtle and dangerous threat, as people who control valuable real estate have more leverage to influence government on all levels.
Basically everyone is waiting for November. If Trump goes off, stuff will normalize again, and if the GOP gets flattened long-term confidence will rise. The really interesting scenario is Trump either winning outright, delaying the vote or refusing to leave office. At that point it's game over for the US on a global stage.
This is my biggest concern. I'm not sure this country can ever be a leader in anything with 4 more years of this low IQ leadership.
All the corruption news that we used to hear about third world countries are all prefixed with US now.