On Monday, US President Donald Trump signed an executive order to create a sovereign wealth fund next year, speaking about the possibility of purchasing the “Tek Tok” application. The Ministry of Trade and Treasury directed a plan within 90 days.
It is expected that the establishment of the fund will be subject to approvals from Congress, as sovereign funds depend on the financial surpluses of countries while the United States suffers from a permanent deficit in its budgets.
“Other countries have sovereign wealth funds, which are much smaller, and they are not the United States,” Trump told reporters after the signing.
The sovereign wealth fund is a state -owned investment fund that manages surplus precautions that usually derive from natural resources or commercial surplus revenues, to generate long -term returns.
Why does Trump create a sovereign box?
Trump talked about the purchase of the Tech Talk app as an example of an agreement that can be facilitated via an American fund, but he did not provide details of what was going on in his mind.
He added: “We may put this in the sovereign wealth fund, whatever we do, or if we make a partnership with very wealthy people.”
Trump had threatened to prevent Tech Talk in the United States if the BYDANCE Mother’s Corporation did not give up this social network.
Trump gave the application a deadline until early April to comply with the law that responds to the United States’ concerns that the Chinese government may exploit the application to spy on Americans or surreptitiously influence American public opinion.
Trump said that with Tek Tok, “If we hold the right deal, we will do it. Otherwise, we will not do it,” noting that he is holding talks with many people about buying the application, including Elon Musk, Larry Ellison and Microsoft.
Trump’s executive order stipulates that the Treasury and Trade Ministries initiate the creation of a sovereign wealth fund, and this fund is a state -owned investment tool that usually invests in a variety of assets, including stocks, real estate, bonds and hedge funds, to collect a large group of capital.
The fund is designed to help the government reduce the impact of economic challenges or fluctuations, and the fund can also be used to support national interests, enhance the country’s economic flexibility and diversify government investments.
https://www.youtube.com/watch?v=qp-yiwptCa
How did the idea begin with Trump?
Last September, Trump raised the idea of creating a sovereign wealth fund during his speech at the Economic Club in New York, wondering why the United States did not have a fund already.
The Fund proposed as a way to invest in “great national endeavors” for the benefit of the American people, and suggested that the fund be established with large amounts of money, perhaps it comes from customs tariffs and other sources.
At that time, Trump was focusing strongly on customs tariffs as a major part of his economic strategy, after he actually implemented customs tariffs on China and Canada, and discussed the possibility of extending customs tariffs to Mexico, according to the American Forbes magazine.
Regarding Mexico, Trump stated in his announcement that he had spoken with Mexican President Claudia Shinbom and reached an agreement to delay customs tariffs for a month. On the other hand, Mexico agreed to increase its forces on the American border, which Trump described as a positive development in the Border Security Administration.
Another Trump advertisement was also followed by the suspension of the additional customs duties that his country imposed on Canada for 30 days. He said in a post on the “Truth Social” platform, yesterday, Monday – that the comment decision came after a phone call he had with Canadian Prime Minister Justin Trudeau.
This deal has been formulated as a means of managing international relations with the use of customs tariffs as a tool for financing the sovereign wealth fund, and this step comes within the framework of a broader vision of Trump to use economic strategies such as customs duties to finance national projects that can benefit the American economy.
Trump expressed his belief that the time has come to create a sovereign wealth fund for the United States, saying: “I think the time has come for this country to have a sovereign wealth fund.” He added that in a relatively short period, the United States can own one of the largest sovereign wealth boxes in the world.
This statement reflects its vision of the fund’s size and potential impact, which indicates that it can become an important economic tool for the country if it is managed effectively, and according to Trump, the establishment of such a fund would allow the United States to invest in national projects and assets, which may enhance the economy It provides financial flexibility in the face of economic pressures.
What are the largest sovereign wealth boxes in the world?
The Sovereign Wealth Funds Institute recently released its latest rankings for the largest global sovereign wealth funds in terms of assets, as follows:
1- Norwegian sovereign wealth fund
Assets: 1.73 trillion dollars
2- The Chinese Investment Corporation
Assets: 1.33 trillion dollars
3- The Chinese State Management Company for Foreign Investment
Assets: 1.09 trillion dollars.
4 – Abu Dhabi Investment Authority (Emirates)
Assets: 1.057 trillion dollars
5- Kuwaiti General Investment Authority
Assets: 1.03 trillion dollars
6- Saudi Public Investment Fund
Assets: 925 billion dollars
7- Singapore
Assets: 800 billion dollars
8- The Energy Investment Management Agency in Anata Nusantara (Indonesia)
Assets: $ 600 billion
9- Qatar Investment Authority
Assets: 526.05 billion dollars
10- Hong Kong Monetary Authority (China)
Assets: 514.35 billion dollars.
