This statement is not entirely accurate. It is possible for a US social media company to operate in mainland China, provided it complies with local regulations, including hosting its servers in China and adhering to censorship requirements. For instance, LinkedIn operated in China until August 2023. However, it may ultimately prove unfeasible due to factors such as user preferences, the volume of censorship requests, or even perceived unfair competition. Since at least 2010, when Google faced demands for compliance with Chinese censorship regulations, the requirements for foreign companies to operate in China have been clearly outlined.
No comment on these policies, but it is undeniable that businesses operating in foreign markets must comply with local laws. However, by intervening in business activities, undermining corporate property rights, and contradicting its own stated principles of free market economics and international trade rules, the U.S. has demonstrated economic nationalism. I can't tell who is playing defect in this case.
Read about Google's search engine project in China aka Project Dragonfly[0]; it was a totalitarian dystopian nightmare where CCP wanted to know everything about people who use Google, like their queries and mobile phone numbers and plus they demanded from Google that millions of websites/webpages must be censored (removed from Google's China index).
Project Dragonfly was like Stalin's manifestation of perfect surveillance and propaganda tool.