There's no such thing as a free market, regulations are everywhere. One such regulation that I think is perfectly reasonable is that if you want to sell us things we need to be able to sell you things. This is largely true with hardware (e.g. Apple, Tesla sell into China just fine) but most software companies and especially social media have been outlawed.

Just because we are a democracy with different values to the CCP does not mean we should be taken for fools.