Economist Branko Milanovic examines the emergence of national market liberalism across China and Europe, arguing that both regions are developing distinct state-guided economic models. Unlike classical liberalism, this approach combines market mechanisms with strategic government intervention in key sectors.

Milanovic traces how China's decades-long experiment with "socialism with Chinese characteristics" created a template where the state directs credit, owns strategic enterprises, and manages trade flows while allowing private competition. Meanwhile, Europe increasingly embraces industrial policy, strategic autonomy, and state subsidies — accelerated by pandemic supply shocks and energy crises — moving away from strict competition doctrine.

The convergence suggests a global shift where governments reclaim economic steering roles. Milanovic warns this fragmentation risks trade conflicts and technological decoupling, as each bloc defines "strategic sectors" differently. Yet he notes national market liberalism may offer resilience against financial volatility, providing an alternative to the Washington Consensus that dominated previous decades.