If it was insignificant the US wouldn't be going after it like this and making a big deal out of it.
This is to fend off the possibility of TikTok being ubiquitous worldwide, then China using it as app to help spread its digital Yuan platform to directly challenge the dollar... This is way more than just dancing videos or " entertainment "... Think of it as WeChat payments but for the West/entire rest of the world and tied to digital blockchain Yuan.
Facebook started out as a online yearbook, Amazon for selling books for college, and Google as just a search engine...
Look at where they are all now? You are not seeing the much bigger picture here.