Not necessarily. The lawmakers are stating they are afraid of a hostile foreign government interfering or collecting sensitive data via the app. The "free market" will only regulate profitability and desire for a product. But if there's surreptitious data harvesting that won't be apparent to users.
There's also an imbalance in that a foreign command economy can drive tiktok development at a loss if needed or simply have access to funds a free market economy wouldn't.
I don't really believe in the free market but this is the stance the initial argument took.