If China is going prevent US companies from doing profitable business within its economic borders I don’t see why the US should allow Chinese companies to engage in profitable businesses ventures within its country.
Blocking a company from doing business in the US is not the same as the US Government infringing on citizens rights. The better way to do it imo would be to toss ByteDance on the Sanctioned Entities list and block any US financial institution from servicing their US subsidiary. ByteDance wouldn’t stay in the US market for long if they couldn’t get any ad revenue, then it’s their choice to pull out instead of the US Government kicking them out.
It’s really not an infringement of rights either way though.