They aren't demanding a sale. They are just saying they can't operate in the country if they don't sell.
They have a choice to leave the country or follow the rules.
Let us cannibalize your app because it's so successful at doing X that we can't compete with you. It's a bizarre ultimatum for the owners of the app.
Seems like the policies used by the Chinese government for decade are becoming more internationally popular (for better or for worse..).
I can’t really feel bad about when it’s the same deal they offer Western companies. Well.. to be fair Google or FB couldn’t even get anywhere close to where TikTok is.
Where you launch in a place where the government actually controls your company, well, that's a decision you made.