Title Donald Trump Issues Executive Order Establishing US Sovereign Wealth Fund

Donald Trump has issued an executive order to establish a U.S. sovereign wealth fund, which could potentially save TikTok from a potential takeover by Chinese competitors. This move aligns with his efforts to protect American businesses and interests in the face of perceived threats from abroad.

The establishment of such a fund is not without precedent, as Norway's $1.75 trillion fund is the largest in the world. These funds are state-owned investment vehicles that manage excess reserves generated by natural resource revenues or trade surpluses to generate long-term returns for their countries.

However, some experts have raised concerns about the potential for abuse of power associated with such a fund. While other countries may use these funds for economic gain, the United States is in a unique position due to its size and scope as one of the world's largest economies. Some fear that this could lead to unfair advantages or even corruption.

Nevertheless, Trump's Commerce Secretary Howard Lutnick has said that the extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens. Treasury Secretary Scott Bessent also noted that the fund would be set up within the next 12 months.

In terms of how this fund could be used, Trump cited TikTok as a potential example. The popular video-sharing app is facing down a U.S. law that orders it to divest from its Chinese owner ByteDance or be banned in the United States. This comes after concerns were raised about the potential for the app to be exploited by the Chinese government for spying on Americans or otherwise influencing U.S. public opinion.

While the details of how this fund would operate remain unclear, Trump has said that it could be used to facilitate transactions like the sale of TikTok to an American buyer. He mentioned talks with Elon Musk, Larry Ellison, and tech giant Microsoft about purchasing the app, but no deal has yet been announced.

Ultimately, establishing a U.S. sovereign wealth fund represents another move by President Trump to assert American interests on the world stage. Whether this will lead to increased economic gains for Americans or raise new concerns remains to be seen.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.