I don't think that the government cares much about whether a company is extracting information and using it to sell ads. I do think that they care about whether that company is using that information to target governments.
I think that that position is understandable.
What I am skeptical of is the solution. Is having ByteDance divest going to avoid other ways of accomplishing the same thing? How many popular phone apps are out there that could gather data? How many other media sources can be influenced?
And for that matter, the US only has jurisdiction to the extent that TikTok does business in the US. If something like it were to provide free service over the Internet, not sell ads or whatnot in the US, it doesn't fall under US jurisdiction.