The US' international economic dominance is predicated on a (1) pronounced lead in certain industries and (2) a simply massive economy, which combine to (3) let the US set the rules of international "fair play." The US is where you find the thing you want to buy, and the people you want to sell to. You want access? Play by our rules - everywhere.
Tik Tok does not just threaten US data. It threatens our lead in a critical industry (1), and comes from a country that minimizes the impact of US economic might (2), meaning that China can set their own rules of "fair play" (3). Banning Tik Tok isn't to protect US data; that's totally missing the point. It's to protect the American ability to set international norms.
From that lens, this is certainly hamfisted, and I certainly don't believe views it like this, but you can damn well bet the policy nerd drafting this EO is thinking this way.