Why is this law good? The US has a long history of corporations owning too much in banana republics and bringing the US into pro-dictator political positions.
IANAL but this is only partially true from what I understand. It's legal if the bribe is "grease money". (Grease money is paying a public official to do their job properly and promptly, while regular bribery is paying a public official to do something they shouldn't. But the distinction between the two seems subjective or ambiguous in many possible scenarios.)
Do you have a source for that? I have run across instances of US companies using various schemes to avoid the appearance of bribes (usually involving paying a "consultant" a large amount of money and paying no attention to how the consultant gets the business done), but I know of none getting rid of their businesses in other countries.
I think they should not consider operating in that fashion. They can push for regulation themselves if on their withdrawal they want to prevent an advantage to less ethical US competitors who stay.
On principle, I sort of reject this notion that a giant corporation(s) should be encouraged to meddle in the internal matters of other countries. I think these kinds of moves will be perceived very differently by the locals. The famous line "They will welcome us as liberators with open arms..." (paraphrased) comes to mind :)
I think it is far better to promote your ideas peacefully using other means, rather than by forcing a government to adopt your views because you threaten them with economic consequences by pulling out of the country.
US companies won't be running Uyghur reeducation camps in China even though that is lawful in China and may be their best way to source the right labor.
Is everything happening anyway and with more cost by keeping a separation between US companies/nationals and crimes under US law? Sure. Is it still better? Mercenaries that come back having done "legal" things in foreign countries are a social plague and their connections to groups the US considers criminal are problematic.
To not pick only on China, any US national who works with spyware for the Saudi regime is a criminal under US law, and that is important because they need to be watched when they return to the US to prevent them from assisting in assasinations in US/Canada. Does it matter if the crown prince made their actions in Saudi Arabia legal?
In any case, I think we're way off topic here, trying to solve the worlds problems in the comment section. The last word is yours :)