To be clear, they're not banning the app, they're banning ByteDance from having offices in Canada
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ByteDance will keep no data in Canada, will not employ any Canadians, will not report any information to Canadian authorities, and will have no reason to comply with Canadian warrants or court orders. (Or even judgments.) At the same time, all Canadians can continue to use the app.
On balance, this seems bad for Canada and great for ByteDance.
This makes the most sense if Canada expects (or has) Canadian troops secretly deployed somewhere. And that is one sobering thought.