Trump Wants A Sovereign Fund To Buy TikTok : A Controversial Plan

In an unprecedented turn for American economic policy, Donald Trump signed a presidential decree that creates a national sovereign fund, a groundbreaking initiative in the United States. This financial instrument aims to stimulate economic growth, finance strategic infrastructures, and potentially facilitate the acquisition of TikTok. The platform, in the crosshairs of Washington for national security reasons, must imperatively separate from its Chinese shareholders to continue its operations on American soil. Drawing inspiration from the sovereign fund models of China, Norway, and Singapore, the Trump administration hopes to reduce U.S. dependence on borrowing and enhance its global economic influence. However, the establishment of such a mechanism raises many questions: how could a country with a massive budget deficit finance such a project? What would be the geopolitical implications of a direct intervention in a globally significant technology company? Balancing economic ambition and diplomatic stakes, this sovereign fund constitutes a major shift that could redefine the role of the American state on the international stage.

An Unprecedented Economic Project in the United States

Donald Trump defends the creation of the sovereign fund as a strategic response to the country’s economic challenges. He states he wants to “monetize the asset of the United States balance sheet” to finance major national projects and reduce dependence on debt. To realize this ambition, the government is relying on a combination of liquid assets and existing resources in the territory. “We will make these assets available to the American people,” assures Treasury Secretary Scott Bessent.

Unlike traditional sovereign funds, generally funded by oil, gas, or significant budget surpluses, this American fund could rely on customs duties and alternative forms of taxation. Moreover, this approach provokes intense questions, particularly regarding its financial viability. With a colossal budget deficit, the United States does not have the surpluses that enable nations like Norway, Singapore, or China to effectively manage their sovereign funds.

The idea of a state investor also provokes contrasting reactions in Congress. Some elected officials see it as an opportunity to strengthen the country’s economic autonomy, while others warn of the risk of politicizing the economy. The management of public assets raises concerns regarding transparency and potential abuses. Additionally, there is a major strategic issue: if this fund were to come to fruition, it would profoundly alter the economic role of the federal government, a topic that deeply divides the American political class.

A Strategic Lever for TikTok and American Influence

Beyond infrastructure projects, the American sovereign fund could serve to finance a stake in TikTok, an option that Donald Trump has mentioned several times during his presidential campaign. This initiative fits into a context of escalating tensions between Washington and Beijing, as the application is accused of being a spying tool for the Chinese government. U.S. authorities now require TikTok to separate from its Chinese shareholders to continue its activities in the United States. “We want to ensure TikTok remains in good hands, without interference from China,” Trump insisted, suggesting a possible acquisition by American actors supported by the state.

The U.S. government’s entry into TikTok’s capital, however, raises numerous legal and ethical concerns. Several experts warn against the risk of a state directly controlling an influential platform, especially in a country where freedom of expression and network neutrality are fundamental principles. This situation could set a dangerous precedent, opening the door to increased public intervention in the private sector and the social media market.

Diplomatically, such an acquisition could further deteriorate relations between Washington and Beijing. China could view it as direct interference in its economic interests, exacerbating the already distrustful atmosphere between the two powers. This confrontation goes beyond TikTok. It reflects a broader struggle for influence over digital technology mastery and data access. If this project succeeds, it could alter the balance of power in the Sino-American rivalry and redefine the rules of the game regarding the control of digital platforms.

With this project, Donald Trump aims to transform the United States’ economic policy and draws inspiration from sovereign fund models adopted by nations with significant financial reserves. However, the absence of budget surpluses and the scale of the American deficit pose a major challenge. The success of such a fund would depend on its governance and transparency, but also on its ability to attract capital and generate sustainable returns. If this mechanism is implemented, it could profoundly alter the role of the federal government, providing it with a unique financial lever on the international stage. It remains to be seen whether this vision will survive political resistance, budget constraints, and the geopolitical implications it is already triggering.