Xiaomeng Lu, Director of Geo‑technology at political risk consultancy Eurasia Group, told CNBC that the law will likely prevail, even if its implementation and enforcement are delayed. Regardless, she expects Chinese apps in the U.S. will continue to be the subject of increased regulatory action moving forward.
"The TikTok case has set a new precedent for Chinese apps to get targeted and potentially shut down," Lu said.
She added that other Chinese apps that could be impacted by increased scrutiny this year include popular Chinese e-commerce platform Temu and Shein. U.S. officials have accused the apps of posing data risks, allegations similar to those levied against TikTok.