This isn’t correct. The US law only applies to the services provided within the US.
ByteDance could spin out the US userbase while retaining the rest of the userbase. Many US companies already have to do exactly this for their Chinese userbase. Spin it off to a JV with a Chinese partner.
I’m not aware of anyone doing this, but you could even have a content syndication model whereby the global TikTok and the US TikTok share a common pool of content and username reservations so that both services appear global to their users, but with separate companies controlling distribution of their own apps and the recommendation model used to serve content.
> No other country could get away with demanding this.
TikTok is already banned in India. Brasil banned Twitter for a while until they caved to Brasil's demands.
"Entitlement" in the context of nations is irrelevant. Nations exercise power in accordance with their interests.
It doesn't have to be the United States. It just has to be anyone other than Iran, North Korea, China, and Russia.
But this particular situation is not. A Chinese controlled company that operates in the US. If you want access to $CC market you are subject to $CC's rules. Other countries do exactly the same thing (aside from China, GDPR comes to mind) so it's unclear what the basis for your complaint is here.