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Through his executive order President Donald Trump authorized the U.S. to start coordinating the establishment of a government-run investment fund. Trump advocated that TikTok could join a new federal wealth fund under U.S. ownership through an agreement with an American company.

The executive order shows Trump remains dedicated to resolving issues about TikTok's Chinese control as well as its security implications for America. Under the executive order TikTok maintains until early April to discover a domestic partner before the United States might claim 50 percent ownership of the application. During his Oval Office statement Trump indicated that TikTok serves as an ideal case of assets for the United States to place within its sovereign wealth fund.

Trump proposed that the proceeds from TikTok could either go into the sovereign wealth fund or a partnership with wealthy individuals would be feasible among other options. The fund has the potential to include this venture as one of its strategic investments. The fund has ample options within its reach apart from the TikTok asset.

Government officials maintain sovereign wealth funds as investment entities which control stockholdings bonds and real estate assets. Budgetary surpluses serve as the funding source for these funds however the United States operates without such surpluses at present. Trump anticipated that American investment funds would eventually grow similar to the world's largest sovereign fund of Saudi Arabia which he vowed "we’ll catch it."

Statistics from The International Forum of Sovereign Wealth Funds demonstrate that worldwide sovereign funds now exceed ninety entities controlling more than $8 trillion worth of assets. Throughout the United States there exist over 20 state-level sovereign wealth funds funded by oil and gas and mineral revenue that operate in Alaska and Texas as well as New Mexico.

Trump appointed Scott Bessent as treasury secretary and Howard Lutnick as his choice for commerce secretary to create the fund and both individuals expected to need congressional blessing for its implementation. Bessent stated that the administration plans to establish the fund during the following year. Lutnick proposed that the fund should invest in revenue-making industries that produce vaccines.

A federal law enacted in April triggered the United States government to seek TikTok's ownership restructuring since it demanded ByteDance to separate its TikTok operations to avoid shutdown. The Supreme Court supported the federal law passed by President Biden even though different parties including TikTok companies and users filed legal challenges leading to its passage last month.

When he took control President Trump ordered the Justice Department to delay execution of TikTok enforcement for three-quarters of a year to enable negotiations for a settlement. The U.S. operations of TikTok have attracted investment interest from billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin among other prominent financiers. According to Trump many corporations including Microsoft approached him regarding the purchase of the platform.

Cloud-based artificial intelligence startup Perplexity AI created an offer for ByteDance allowing the American government to secure ownership between 50 percent and total control of a new joining venture between Perplexity and TikTok's USA operations. The proposed successful agreement would give the government control of a significant stake in the new entity that might enable an IPO worth more than $300 billion.