I still believe that the EU and aligned countries would rather have America to agree to much tighter speech controls, digital ID, ToS-based speech codes as apparently US Democrats partly or totally agree to. But if they have workable alternatives they will deal with them from a different position.
For some reason you forgot to mention "Like the US did with TikTok".
esp. when America already controls the main outlets through Android Play Store and Apple Store, and yep, they have proven to control them not just happen to host them as a country
arguably America did have valid security concerns with Huawei though, but if those are the rules then you cannot complain later on