The president of the United States, Donald Trumpsigned on Monday a Executive order in which he orders the departments of the Treasury and Commerce to create a “sovereign fund” that could acquire the red social TikTok.
Tiktokwhich has around 170 million US users, maintained the activity briefly suspended after a law demanded to its Chinese owner byace the sale of the company for national security reasons. Trump, after assuming the position on January 20, signed an executive order that delayed the application of the law 75 days.
“We are going to launch this in the next 12 months. We are going to monetize the side of the United States balance assets for the American people,” he told reporters. “There will be a combination of liquid assets, assets that we have in this country while we work to bring them to light for the American people.”
Trump He had previously proposed a government investment vehicle of this type as a presidential candidate, saying that he could finance “great national efforts” as infrastructure projects such as roads and airports, manufactures and medical research.
Fund financing
The details about how exactly the fund would be operated and financed immediately, but Trump said previously that it could be financed with “tariffs and other intelligent things.” In general, these funds depend on the budget surplus of a country to make investments, but the United States operates with deficit. According to him International Sovereign Funds Forumthere are more than 90 funds of this type worldwide that manage more than eight billion dollars in assets.
Trump acknowledged a few days ago that he was in conversations with several people about the purchase of Tiktok and that he would probably make a decision about the future of the popular application in February.
Given the difficulty of a sales operation, the option that Trump now considers is the creation of a sovereign investment fund. The idea is to create a state -owned investment vehicle that controls a portfolio of financial assets with participation also of private investors or designated by the main shareholder, which is the State. The world’s largest sovereign fund is the ABU Dhabi Investment Authority (ADIA), which manages assets estimated at 875,000 million dollars.
