Let’s cut to the chase: Donald Trump has never been one to shy away from bold, headline-grabbing ideas. And his latest proposal—to create a U.S. sovereign wealth fund that could potentially purchase TikTok—is no exception. It’s a move so audacious it almost feels like something out of a Silicon Valley pitch meeting gone rogue. But here we are.
The idea surfaced in an executive order signed by Trump earlier this week, directing the Treasury and Commerce Departments to draft a plan for the fund within 90 days. If executed, this fund would essentially function as a government-run investment vehicle, pooling resources to buy stakes in companies or assets deemed strategically important to the United States. And according to Trump himself, TikTok might just be the first big-ticket item on its shopping list.
Now, let’s unpack why this matters. For months, TikTok has been caught in a geopolitical tug-of-war between the U.S. and China. The Biden administration had already banned the app, citing concerns over national security and fears that ByteDance, TikTok’s Chinese parent company, could use the platform for surveillance or propaganda. The ban was temporarily delayed, giving ByteDance until April 5 to sell TikTok’s U.S. operations—or face being shut down entirely.
Enter Trump’s Hail Mary: a sovereign wealth fund. Think of it as a government-backed piggy bank designed to invest in assets that serve the nation’s interests. These funds are common in countries like Norway and Singapore, where they’re used to generate long-term wealth through investments in stocks, bonds, real estate, and more. In theory, such a fund could allow the U.S. to take control of TikTok without relying on private buyers like Microsoft or Oracle, both of whom have expressed interest but haven’t sealed the deal.
But here’s the catch: ByteDance has repeatedly insisted it has zero plans to sell TikTok. The company argues that divesting TikTok’s U.S. operations is “technologically, commercially, and legally infeasible.” Translation? They’re digging in their heels. Even if the U.S. government waves stacks of cash (or taxpayer dollars) in front of them, ByteDance isn’t budging—unless forced to do so.
And then there’s the timeline issue. Setting up a sovereign wealth fund takes time, typically years, not months. While Trump’s team claims they can get it operational within a year, that’s still too late to meet the April 5 deadline for resolving TikTok’s fate. Extending the ban delay is possible, but it would require walking a fine political line—and convincing skeptics that the fund is more than just a pipe dream.
Still, the concept raises fascinating questions about the role of government in tech. Would a publicly owned TikTok operate differently than its current iteration? Could it become a model for regulating other foreign-owned platforms? Or would it simply trade one set of controversies for another?
For now, all we have are hypotheticals. Trump himself hedged his bets during recent remarks, saying, “We’re going to be doing something perhaps with TikTok, perhaps not.” He also floated the idea of partnering with wealthy individuals or corporations, leaving the door open for alternative solutions. But make no mistake: the mere suggestion of a U.S.-owned TikTok signals a seismic shift in how America approaches global tech competition.
Whether this plan succeeds or fizzles out remains to be seen. What’s clear, though, is that the battle over TikTok is far from over—and it’s shaping up to be one of the most consequential showdowns in the history of digital diplomacy.
FAQs:
Q1: Why does the U.S. want to ban TikTok?
A: The U.S. alleges that TikTok poses national security risks due to its ties to ByteDance, a Chinese company, raising concerns about data privacy and potential misuse for surveillance or propaganda.
Q2: What is a sovereign wealth fund?
A: A sovereign wealth fund is a state-owned investment fund used to manage a country’s surplus revenue by investing in assets like stocks, bonds, and real estate to build long-term wealth.
Q3: Has ByteDance agreed to sell TikTok?
A: No, ByteDance has consistently stated that selling TikTok’s U.S. operations is “technologically, commercially, and legally infeasible” and has shown no willingness to divest.
Q4: Which companies were interested in buying TikTok?
A: Companies like Microsoft and Oracle have expressed interest in acquiring TikTok’s U.S. operations, though negotiations have yet to result in a finalized deal.
Q5: When is the TikTok ban deadline?
A: The temporary delay on the TikTok ban expires 75 days after Trump’s inauguration, which falls around April 5, unless further extensions are granted.
