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"Globalization brings more challenges for Chinese domestic companies than before," he said. "It is normal and inevitable. The point is how we prepare for that."

"Foreign investment is playing a key role in connecting the domestic and international markets. Once China establishes a unified, open and complete domestic market system, both domestic and foreign companies will be able to achieve greater efficiency and gain a key competitive edge in the global market, which will further prove China's capabilities to attract foreign capital and achieve better connectivity between the domestic and international markets," Cui said.

"For those of us who follow CFIUS on a regular basis, we're very surprised to see the executive order related to TikTok," said Justin Huff, former deputy director of the investment security office at the Treasury Department.

"Growth of China's app economy is accelerating, putting it within striking distance of economies like Japan and the United States, said Bertrand Schmitt, CEO and co-founder of App Annie, a mobile analytics institute.

"Given Japan is in the midst of a global pandemic, it's unlikely that whoever succeeds Abe can start putting out major policy changes. No one is expecting that from the next prime minister," Makihara said.