Trump’s State Capitalism: An Overview of Selected Cases

by Nato Balavadze

In this paper, we discuss:

• The ad hoc, personalized nature of Trump’s industrial policy, driven by deals and political leverage rather than institutional strategy;
• The Pentagon’s partnership with MP Materials, an unprecedented “industrial policy by contract” blending equity stakes, subsidies, and price floors;
• Revenue-sharing arrangements with Nvidia and AMD, and the federal government’s new 10% stake in Intel, marking a turn toward partial state ownership;
• The Pentagon’s $1 billion stockpiling program and $7.5 billion allocation under the One Big Beautiful Bill Act, merging defense and industrial priorities;
• The contradictions of Trump’s strategy: assertive nationalism that secures short-term gains but undermines innovation, renewables, and long-term coherence.

Download PDF: Trump’s Capitalism November 2025