Donald Trump has signed an executive order that makes it possible for TikTok to acquire a US sovereign wealth fund. In a statement on Monday, Trump said the newly proposed US sovereign wealth fund could preserve the use of TikTok in the U.S.
“We’re going to be doing something, perhaps, with TikTok and perhaps not,” Trump said in a statement, per CNN. “If we make the right deal, we’ll do it. Otherwise we won’t. And we might put that in the sovereign wealth fund, whatever we make. Or if we do a partnership with very wealthy people. A lot of options.”
If the plan goes through, that would give the U.S. government a large ownership stake in TikTok. As a result, the government would have more power in restricting certain types of speech on the platform.
“This gets very complicated very quickly,” Alan Rozenshtein, a University of Minnesota Law School professor told CNN.
Several TikTok users are also saying that they would ditch the app if it becomes controlled by the government.
“I don’t know about y’all but I don’t think too many people want to be on a platform that is being owned by the government, that is obviously being monitored by the government. I don’t think nobody wants that,” one person said in a video, per CNN.
Another person expressed similar concerns, saying a government-controlled app could “change what we’re allowed to say, who we’re allowed to criticize.”
“It is absolutely f***ing dystopian to be saying out loud, that the US government, that we want the feds owning our social media,” the TikTok user said, per CNN. “Why is the government owning social media? This seems like a big no-no.”
According to CNBC, Trump’s executive order states that the fund would develop airports and highways and other infrastructure while also allowing the U.S. to have a strong influence in Panama and Greenland. The fund’s purpose, according to the executive order, the fund will “promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally.”
Trump said he wants the American wealth fund to be one of the largest in the world.
“I think in a short period of time, we’d have one of the biggest funds. And you know, some of some of them are pretty large,” Trump said, per the New York Times. “So, that’s a big deal, huh?”
Howard Lutnick, who was picked by Trump to lead the Commerce Department, said the government benefits greatly from owning a stake in certain companies.
“If we are going to buy two billion Covid vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people,” Lutnick said, per the Times.
Sovereign wealth funds are often used in countries like Norway and Saudi Arabia, nations with a large amount of natural resources and fiscal surpluses. The U.S., however, is facing large budget deficits. Supporters of Trump’s latest executive order say the country wouldn’t need to rely on Treasury debt to raise money if a sovereign wealth fund is established.
If the U.S. becomes a TikTok partner, ByteDance would not be allowed to own more than a 20% share in the app. Rozenshtein also told CNN that there “can be no operational relationship between TikTok and ByteDance going forward.”
The China-owned app was banned briefly in January as officials cited security concerns. However, TikTok was restored for users after Trump signed a signed a 75-day extension and allowed ByteDance more time to sell the app to an American company or be banned.
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