We literally know for a fact that American companies do all the things the Trump administration is accusing TikTok of doing. We've known this since the Snowden revelations.
It's also a 100% different scenario because European and American companies actively decide to not operate in China. If they want to they have to comply with the local laws. Just like European companies in the US or US companies in Europe have to. The fact that the big tech companies are not there is the result of a decision by the companies.
All companies operating in the US have to follow US law. The fact that the government can just say "You can't operate anymore" without giving any evidence of what they're accusing you of is problematic.
Authoritarian regimes are not authoritarian because they don't have laws. They are because they have laws that cover all kinds of bullshit and if you look at the countries that are most authoritarian (Saudi Arabia, China, North Korea), you'll see that they argue "national security" all the time.