Trump orders creation of US sovereign wealth fund, says it could buy TikTok
TikTok’s fate has been up in air since a law requiring China’s ByteDance to sell it on national security grounds or face ban
If created, the sovereign wealth fund could place the US alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.
The text of the executive order was sparse on details, and simply directed the Treasury and Commerce Departments to submit a plan for such a fund within 90 days, including recommendations on “funding mechanisms, investment strategies, fund structure, and a governance model”.
Typically such funds rely on a country’s budget surplus to make investments, but the US operates at a deficit. Its creation also would likely require approval from Congress.
“We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”
Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavours” including infrastructure projects such as highways and airports, manufacturing and medical research.