Trump plans to establish a sovereign wealth fund! Former Morgan Stanley executive Grimes will lead the fight against China's economic influence

US President Trump (Donald Trump) plans to establish a Sovereign Wealth Fund (Sovereign Wealth Fund), aiming to gain more influence in critical national security industries, and is expected to be led by former Morgan Stanley (Morgan Stanley) banker Michael Grimes.

Trump plans to set up a U.S. version of the sovereign fund to target minerals, manufacturing and defense technology

According to Bloomberg, Grimes has left Morgan Stanley, where he worked for 30 years, and is set to join the Trump administration to oversee this new fund. The Trump administration is said to be advancing the sovereign wealth fund program initiated by the executive order issued in February.

Currently, the fund is still in the early planning stages, with specific structures and funding sources still variable, but the goal is to promote investment in key areas in the United States, such as manufacturing, defense technology, medical research, and critical minerals, especially targeting industries where China currently holds an advantage to reduce national security risks.

The source of funding is uncertain, and it has been rumored to be linked to customs revenue.

The Trump administration once proposed during last year's election campaign to include some of the tariff revenue in the sovereign wealth fund as a source of funding for investment in American industries. However, sources revealed that the current plan does not involve tariff revenue, but aims to attract large institutional investors to participate through a public-private partnership model.

In addition, the US Department of the Treasury appointed JR Gibbens, who has extensive Wall Street and military qualifications, last month to assist in planning the strategic investment of the US sovereign wealth fund, showing that Trump is actively building a professional team for the fund.

Or cooperate with overseas investment institutions in the United States to strengthen the resistance to China's economic influence

The US government is currently considering partnering with the Sovereign Wealth Fund, the United States International Development Finance Corporation (DFC), and the Export-Import Bank of the United States (EXIM) to promote overseas investments related to national security, such as rare earth, semiconductor supply chain, military technology, and manufacturing.

The plan could extend to the Trump administration's previous diplomatic strategies, such as increasing its influence on Greenland's (Greenland) and Panama's (Panama). The U.S. government believes that the operation of such funds can prompt large Wall Street investment institutions to invest hundreds of billions of dollars, strengthening the economic dominance of the United States in the global market.

Drawing on the sovereign fund models of the Middle East and Europe, referring to the experiences of Arab and Norway

The structure of the US sovereign wealth fund will reference the Abu Dhabi Investment Authority, the Public Investment Fund of Saudi Arabia (PIF), and global prominent sovereign funds such as Norges Bank Investment Management in Norway.

Sovereign wealth funds in these countries currently mainly accumulate assets through 'oil, natural resources, or foreign exchange,' and then invest funds in infrastructure, technology, and global markets. The Trump administration hopes to create an investment institution that aligns with its national security strategy through a similar model. The White House and the U.S. Department of Commerce have not yet issued formal comments on this.

This article Trump is planning to establish a sovereign wealth fund! Former senior executive of Morgan Stanley, Grimes, will lead the team to counter China's economic influence first appeared on Chain News ABMedia.