Potential government action against China’s social media giant TikTok could lead to a damaging backlash against U.S. companies, according to traders and guests on CNBC’s “Fast Money.” TikTok CEO Shou Zi Chew testified before Congress on Thursday, taking heat from both sides of the aisle. Many members of Congress are calling for TikTok to be banned in the US or for some kind of sale of the company that would eliminate the data of American users. The TikTok ban could be a boost, at least in the short term, for social media competitors in the US, but the fallout from China could hurt US companies in the long term, according to Seymour Asset Management CIO Tim Seymour on “Fast Money. .” Shortly before the TikTok hearing, a spokesperson for China’s Ministry of Commerce said the country “will oppose” forced sales, the Associated Press reported. “The Chinese government has talked about it for the first time, and it’s not good,” Seymour said. Guy Adami, director of advisory advocacy at Private Advisor Group, said a possible blowback from China was the main thing he was looking for after the hearing. “It hasn’t happened yet, and I hope it won’t happen. But the companies in the crosshairs are clearly names like Starbucks, McDonald’s, and Apple at the top of the list. And I don’t think the risk. has been priced almost significantly enough,” said Adami. And government action against TikTok could pose a long-term threat to US social stocks like Meta Platforms, even if the ban creates a short-term bump, said Gene Munster of Deepwater Asset Management. “This is not just all good for Meta either. When you watch this, you see there is a huge concern about the addictive aspects of short format videos and social media. That Reels too. I think that at this time it seems to be clear. benefit in time that’s close, which I don’t think is worth it, we’re going to see a change,” Munster said.