That's not what they meant and probably you know that, it's more like coming up with a standard set of rules that applies for all the apps and TikTok can either choose to obey them or exit the US market. Exactly like how American companies exited China.
What the government perceives as a threat for apps from other nations must also apply to home grown apps. It's not like US based apps haven't been unethical, or didn't cause a crisis.