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This is simply one of the first steps towards US-China decoupling.
The US knows that it cannot contain China, cannot stop China from technologically surpassing itself. But the US still controls the global tech industry market, and China is still distances from transitioning away an export-led economy.
That’s why the US is specifically targeting Huawei. These targets were very specifically and strategically chosen. They want Huawei to succeed in developing their native technology and architectures, so down the road the US can simply force the rest of the world to choose between Apple/Google ecosystems, or the Chinese Harmony ecosystem, citing technical incompatibility between the two (many US government agencies already have a strict requirement regarding technology use involving Chinese components).
The global tech sector has far too much invested in and have their entire operations built around the existing Apple/Google/Amazon ecosystems so it will become very painful and costly to make the switch even if a superior Chinese alternative is available. At the end of the day, if you want to earn dollars, as a business, you’d have to weigh how much you’d be willing to risk losing (especially against your competitors) when the US declares that use of native Chinese technology is no longer accepted in your business dealing with them.
This Tiktok debacle is really just setting up the legal precedences for what they actually intend to commit to in their strategic planning down the road.
To understand the landlord empire, you need to think like a landlord. Microsoft did not dominate the consumer market because they made the best products, but because they were the best at using legal means to stop their competitors from penetrating the market.
For consumers yes people are locked into google or apple ecosystems, but for large scale businesses often they either have their own infrastructure or they do multicloud. Sometimes they even use different vendor mixes per region because there may be local providers who can compete locally with the big boys. What I think would stop large businesses from using Chinese vendors is the US government saying they are not allowed to use Chinese vendors. Their lawyers at that point will simply not allow them to buy Huawei equipment or use Tencent cloud. I dont think these shell games are strictly necessary when it comes to companies doing business in the US. Politically though it may be problematic for them to do that right now.