I wholly agree with you first paragraph.

But the 1% stake the Chinese government has in ByteDance is a golden share.

From The Economist:

More stunning are the terms of these investments. ciif’s 1% stake in a ByteDance subsidiary gives it the power to appoint one of three board members in a unit that holds key licences for operating its domestic short-video business.

To what extent the CCP will exert control or what ByteDance has agreed to is unclear. And who knows if any of that matters.