They already do…
Almost everything foreign in China is 51% state owned. McDonald’s franchises, Costcos, Gucci stores, etc.
Those places entered into China while agreeing to those restrictions. That’s different than the US allowing foreign investment then rugpulling it and stealing the Chinese owned portion of a business after the fact.
In order to retaliate, China needs to seize or steal American capital.
In addition to that:
60% of ownership is by global hedge funds
so effectively half of bytedance is owned by westoids anyway