President Donald Trump has signed an executive order to create a new government investment fund. This fund could potentially buy the popular video app TikTok. The announcement came on Monday and it marks a significant shift in US government involvement in private business.
Establishing a Government-Owned Investment Fund
Trump has directed the US Treasury and Commerce Departments to set up this new fund. Treasury Secretary Scott Bessent said the plan is to set it up within the next 12 months. The goal is to monetise US assets to benefit the American people.
Bessent mentioned that the fund would include both liquid assets and other resources found within the country. The government aims to bring these assets forward to help the public.
Potential Funding and Purpose of the Fund
Trump had discussed the idea of a government investment fund during his presidential campaign. He suggested the fund could support national projects like infrastructure improvements. This includes building better highways, airports and investing in medical research.
Read more: Microsoft in Talks to Acquire TikTok, Says Trump
Details on how the fund will work are still unclear. However, Trump mentioned it could be financed by tariffs and other “smart” ideas. Normally, such funds rely on a budget surplus, but the US has a deficit.
TikTok’s Future and National Security Concerns
TikTok has over 170 million users in the United States. The app was almost banned in January due to national security concerns over its Chinese owner, ByteDance. A law was set to require ByteDance to sell TikTok or face a ban.
Trump took office on January 20 and signed an executive order to delay the ban. He extended the deadline by 75 days to allow more time for a decision.
Looking Ahead: TikTok’s Fate
Trump has said that he is in talks with several parties about purchasing TikTok. He plans to make a final decision on the app’s future in February. The outcome of these discussions could significantly affect TikTok’s operations in the US.
The creation of a government-run investment fund could change the way the US handles foreign-owned tech companies. If successful, this fund could impact future deals, including the purchase of TikTok, and offer new opportunities for the American economy.
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