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>the obvious response will be that country will ban your apps in return

I agree in general, although in this particular most Western apps are banned in TikTok country of origin anyway.

TikTok is published by ByteDance, a public company incorporated in the Cayman Islands.

Can you tell which "western apps" are banned in Cayman Islands?

And Microsoft/Apple/Facebook sells stuff in Europe through a company incorporated in Ireland. Does that make those companies Irish?

It's a Chinese company. The location of incorporation is pretty tangential to the discussion of app censorship.