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> China doesn't allow foreign corporations to operate within their borders

It's not true, just to clarify it.

Many foreign corporations operating in China, only if they:

1. Keep all user data within the border. 2. Cooperate with censorship

TikTok meets the first condition in the U.S., and I think the issue lies with the second condition.

I could be wrong, but I thought you have to operate a subsidiary in China, which is majority Chinese-owned. for example, Azure China is operated by 21Vianet, who also owns all the infrastructure.
Yeah, that's the part 1, all data must be within the border

so Azure in China can only be ran by a Chinese entity

If you look at it from the other side, it's like Tiktok must be hosted by Microsoft/Amazon but not datacenters in China