The “data privacy” argument is bullshit and the people pushing for this law know it. That’s what is being sold to people but it is not why this TikTok ban got passed. It got passed because American social media companies are pissed that TikTok is outcompeting them for the attention of young people, and because the US government has a heavy hand in what algorithms are allowed to push on Facebook and Google and others. A good portion of Facebook’s initial funding came from government sources.
“Data privacy” is just an excuse. Lobbying from the intelligence agencies and social media companies is why it’s really being enacted.