The law only prohibits the operations of so-called "foreign adversary controlled applications" i.e. companies with Chinese investors.

I'm pretty sure if TikTok was controlled by American investors and sold data to China it would be fine - although there's also an executive action that bans selling data to foreign adversaries, it also hasn't actually been implemented by regulators and is pretty simple to work around anyway since a third-party can just buy data from American companies and then sell it to China.

I think a bill like this that targeted all companies that collect data would be good.

Targeting "foreign adversary controlled applications" doesn't really help anyone.