The US administration brazenly forced TikTok to move its US business to the US, it's fair play if the EU uses some subtle regulatory nudging to incentivize European companies to store their data inside the EU.
The Chinese government has forced plenty of US companies to move data local from apple to tesla. Also a vast majority of tiktoks revenue comes from the US to this day, they can’t afford to lose it. unlike with india and probably every other region they operate in outside of china. It’s also not brazen as the two countries aren’t on best terms atm.