There's a bit more to it than that.

One of the high ranking members of TikTok's parent company, I think called ByteDance, is a sitting member of the CCP. TikTok CEO says that this person is only dealing with the Chinese side of the business, but that's a potential area of influence from the Chinese government.

Also, it has been suggested that the app itself is not just collecting data, but also an attempt to subvert American youth in a variety of ways. The algorithm that runs the app in America is very different from the one in China. One notable way is that the app in China, called Douyin, requires anyone under 14 to register as a youth, and it limits their access to 40 minutes per day between 6am and 10pm. They also receive mandatory pauses every 5 minutes, and are shown only "inspiring content" from fields like math and science. Compare that to American teen usage which is mainly sexual dances and NyQuil chicken.

This can become a chicken or the egg kind of conversation, where it's not China's fault that American teens are idiots and pursue this kind of stuff, but it is a bit suspicious that they limit usage for their own but not for us. Whether or not that means that it is an intentionally insidious attack against America is debatable.