CEOs are learning to live with Trump’s turn to state capitalism

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🗞️ Driving the news: U.S. companies are adapting to President Donald Trump’s growing use of state capitalism, where government influence shapes corporate decisions
• Nvidia recently received approval to sell advanced chips to China, but the U.S. government will take 25% of the revenue, highlighting a new model of state leverage

🔭 The context: Trump’s administration is increasingly intervening directly in corporate strategy
• \its tactics include taking equity stakes or revenue shares, exerting pricing pressure, and steering business behavior without outright nationalization
• Some CEOs are learning to work within this system, and even profit from it, by aligning closely with government priorities

🌍 Why it matters for the planet: State capitalism can strongly influence climate and sustainability outcomes
• Expanded government involvement could accelerate clean-energy deployment, green industrial policy, and climate-aligned investment — if sustainability goals are prioritized
• Conversely, if state power favors fossil fuels or geopolitical competition over climate action, it risks slowing the energy transition

⏭️ What’s next: More companies may face trade-offs between market freedom and government partnership
• Investors and boards will need to assess how political alignment affects long-term resilience, innovation, and environmental responsibility

💬 One quote: Trump’s approach represents “a sort of state capitalism,” where government leverage steers corporate behavior without owning firms outright

📈 One stat: 25% — the share of Nvidia’s China chip-sale revenue claimed by the U.S. government

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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