KUALA LUMPUR — US President Donald Trump has ordered the creation of a sovereign wealth fund which he said could potentially buy TikTok from Chinese parent ByteDance.
He signed an executive order on Monday for the sovereign wealth fund, ordering the Treasury and Commerce Departments to submit a plan within 90 days on its creation, including funding mechanisms, structure, governance and investment strategies, Reuters reports.
“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.”
He also suggested the fund could buy TikTok, which he gave a reprieve of 75 days from a Biden administration ban after taking office on Jan 20.
Trump said previously that he would likely make a decision on the short reel app’s future this month, after talking to several potential buyers.
Reuters meanwhile pointed out that a sovereign wealth fund normally utilises a country’s budget surplus but the US is currently at a deficit. Questions were also raised about the need for Congress’ approval.
In previous remarks about creating a US government investment vehicle, Trump has said it could be funded by “tariffs and other intelligent things.”
Former Treasury official Clemence Landers was quoted saying that such a fund cannot be established by executive order alone.
“More to the point is you can’t fund an institution by executive order,” she said in Reuters’ report.
The news wire also reported Treasury Secretary Scott Bessent saying that the fund would be set up within the next 12 months. – February 4, 2025