It doesn't matter where the headquarters is, it matters where they're doing business.

Unless Bytedance doesn't want to get any money from US advertisers and Alibaba doesn't want to do business with US customers.

A government rule that says anyone with market power can't have censorship power isn't so much picking winners and losers as preventing someone else from doing it.

And it isn't preventing useful filtering, because someone without market power can do it.

There are maybe better ways to fix this. Like get rid of DMCA 1201 and the other laws that cause tech markets to consolidate like this to begin with. But given the choice between this or nothing, this.