Masayoshi Son of SoftBank proposed a joint Japan-U.S. sovereign fund with an initial size projected to reach $300 billion. Reports indicate this project is under discussion between Japan and the U.S., but it carries significant risks.

The greatest risk is that this fund may become a new means for U.S. allies, placing Taiwan in a precarious position. As reported by the Financial Times, the joint sovereign fund was mentioned multiple times in Japan-U.S. trade negotiations. The fund will predominantly be owned by the U.S. Treasury and the Japanese Ministry of Finance, with future opportunities for limited partner investments.

The purpose of this fund is to revitalize industries and generate profits, with Japan proposing to assist the U.S. in revitalizing its shipbuilding sector.

While Son is known for early investments in Yahoo and Alibaba, his recent investment performance has been poor, particularly following significant losses from WeWork, severely damaging his reputation. Countries that are compelled or voluntarily join this sovereign fund may face conflicts of interest.

Should this fund be established, it could serve as a model for the U.S. to build closer investment relationships with other nations. Taiwan must carefully evaluate the implications of establishing a similar sovereign fund.