This article originally appeared in The Stanford Daily.

European Union (EU) High Representative for Foreign Affairs and Security Policy Josep Borrell M.S. ’75 visited the Hoover Institution on Monday for an event hosted by the Freeman Spogli Institute for International Studies (FSI).

In a keynote speech followed by a conversation with the institute’s director and former ambassador to Russia, Michael McFaul, Borrell delved Europe’s crucial role and responsibilities in addressing ongoing war in Ukraine and Gaza, as well as geopolitical security and emerging technology more broadly.

Borrell emphasized the need for EU countries to collectively adapt to the changing geopolitical landscape and increase their strategic responsibility. He stressed the importance of European unity in the face of challenges posed by Russia’s aggression in Ukraine and the ongoing Israel-Gaza war, noting that the security landscape has “dramatically changed.”

“Europe has to learn to speak the language of power,” Borrell said, emphasizing the need for Europe to increase its military capacities while utilizing all available tools to face global challenges.

Listen to Representative Borrell's full discussion with Michael McFaul below on a special episode of World Class podcast.

Follow the link for a transcript of "Strategic Responsibility in the EU, United States, and Beyond."

Regarding the Israel-Gaza war, Borrell called for a political process that would empower the Palestinian Authority and reach a solution for peace, describing the current state as “a stain on human consciousness.” He urged the international community to push for a ceasefire, secure the release of hostages, and ensure better access to humanitarian aid in the region.

“It is not a natural catastrophe what is happening in Gaza. It is not an earthquake, it is not a flood when you come and help people suffering the consequences. [It] is a manmade disaster, is a manmade catastrophe,” Borrell said.

Among the other global challenges Borrell called for Europe to address was the continent’s dependence on China for critical materials and technologies. He emphasized the importance of coordinating with the US to counter China’s growing influence in the global economic and political sphere.

“More coordination in front of China should be one of the most important things that the Europeans and the Americans should do in order to balance the challenges of this world,” Borrell said.

More broadly, Borrell spoke to the importance of coordination between the US and EU to work globally to protect “political freedom, economic prosperity, and social cohesion.”

Borrell acknowledged that the United States is a global leader in emerging technologies, particularly artificial intelligence, and stressed the importance of cooperation on trade and technological innovation. He expressed concern that regulatory hurdles may be hindering the EU’s ability to catch up with the U.S. in the technology sector and emphasized the significance of transatlantic collaboration in shaping the future of technology.

“I am happy to know that we are partners in building a responsible and human-centric technological innovation,” Borrell said.

The importance of partnership across countries was a throughline in Borrell’s speech, as he concluded with a reminder of the interconnectedness of global security and social well-being. “You cannot be secure at home if your neighbor is not eating dinner.”

Watch High Representative Borrell's full keynote remarks below. Video courtesy of the European Commission.

Allen began with an anecdote about a conversation with the governor of one of China's poorest agricultural provinces. When asked about his economic priorities, the governor cited advanced technologies such as semiconductors and biotechnology, mirroring the sectors highlighted in the Made in China 2025 plan. This response underscored China's government's relentless focus on technological advancement across all levels of government, which Allen described as a "techno-utopian quest."

Allen traced the roots of China's techno-utopianism back over a century ago to the May 4th Movement, which called for a new culture based on science and democracy. He argued that this vision aligns perfectly with Marxist ideology and the Communist Party's current policies. "China’s leaders have long believed in the transformative power of technology," Allen noted, "a belief that is deeply embedded in their political and ideological fabric."

Allen emphasized that China is not just an "innovation sponge" but has also become a leader in its own right. "China’s definition of innovation is tailored to its needs," he said, "differing significantly from the Silicon Valley model." He outlined five key points about the new productive forces that may distinguish Shenzhen from Silicon Valley:

1. China recognizes that it is facing an acute labor shortage and is thus focusing on factory automation and efficient production in mature industries.
2. China wants to spur innovation and create new industries at almost any cost.
3. There is an overwhelming mandate for self-reliance and import substitution. 
4. There is plenty of government money.  
5. China plans to turn “data” into the “fifth factor of production”, behind – land, capital, labor, and entrepreneurship. 
    

China’s innovation is evident in its ambitious industrial policies, which are supported by substantial government funding and a strategic focus on self-reliance and import substitution.

Allen continued to discuss the implications of the U.S. export controls aimed at decoupling from China, highlighting the unintended consequences for American companies. He pointed out that unilateral export controls often harm U.S. firms more than their intended targets by reducing their customer base and long-term competitiveness. "We must recognize that these controls can backfire, hurting our own industries while China accelerates its push for technological independence," Allen warned.

Another critical issue raised by Allen was the regulation of data flows. China's Cyber Administration has introduced stringent controls over cross-border data transfers. "The regulatory environment is becoming increasingly complex," Allen explained, "making it challenging for companies to maintain operational connectivity and compliance across borders."

From a corporate perspective, Allen urged companies to recognize the political realities and prepare for potential conflicts that could disrupt international trade. Many American firms are already scenario planning for severe sanctions, similar to those imposed on Russia, to ensure business continuity. "Strategic foresight is essential," he advised, "as geopolitical tensions between the U.S. and China show no signs of abating."

Craig Allen's remarks were a reminder of the far-reaching implications of the competition for technology leadership between the U.S. and China. His insights underscored the need for a nuanced understanding of China's ambitions and the strategic adjustments required for American businesses to navigate this complex landscape. As the world witnesses unprecedented techno-economic competition, the stakes for both nations and the global economy could not be higher.

All views Craig Allen shared are his own and do not reflect the positions of the US-China Business Council.
 

Watch the Recorded Event   

Discover more from the inaugural SCCEI China Conference which brought together over 20 expert panelists from around the world and from across Stanford’s schools and disciplines, as well as experts and business leaders from Silicon Valley and the Bay Area to share insights on China's economic prospects. 
 

The problem, Fayyad said, is that a two-state solution has never been defined with adequate precision. “Part of this is to be expected if something is going to be the product of negotiations,” as was not the case in prior years with proposals such as the Oslo Accords.

On Oct. 7, 2023, Palestinian militants led by Hamas attacked Israel, killing almost 1,200 people, and Israel responded by launching an invasion of Gaza that has killed more than 34,000 Palestinians as of April 2024. With the war ongoing for seven months now, the Palestinian-Israeli conflict goes back many decades to 1948, when Israel was established. The question now is, what does the future hold for Gaza, the Palestinian people, Israel, and stability in the Middle East?

Fayyad raised the issue of what the key organizing principle to determine a future State of Palestine and a peaceful solution with Israel could be.

He said, “That process must be preceded by formal recognition of our rights as a people, our national rights. It's very important. Oslo was not about that. Oslo was very transactional.”

‘Voices in these discussions’

Sallam, a moderator, said in an email prior to the event that “the ongoing war has caused a grave humanitarian catastrophe in Gaza with tens of thousands of deaths, a serious risk of famine, and a pressing public health crisis. It is important for us to advance as many conversations as possible about how we got to this reality and how we can find a peaceful exit out of it. And it is imperative to elevate and center Palestinian voices in these discussions.”

He added, “Dr. Fayyad’s visit to CDDRL’s Program on Arab Reform and Democracy promises to shed light on a host of pressing questions that the Stanford community has been grappling with since last year. It is a timely opportunity to learn, engage, and deliberate.”

Fayyad is an economist who served as minister of finance for the Palestinian Authority from 2002 to 2005 and as prime minister from 2007 to 2013. During his tenure, he introduced a number of economic and governance reforms. Afterward, he founded "Future for Palestine," a nonprofit development foundation. He also worked for the International Monetary Fund, including as the resident representative in the West Bank and Gaza Strip. Currently, he is a Visiting Senior Scholar and Daniella Lipper Coules '95 Distinguished Visitor in Foreign Affairs at the Princeton School of Public Affairs. He is also a distinguished statesman at the Atlantic Council and a distinguished fellow at the Brookings Institution.

Recognition of Rights

Fayyad said that the recognition of Palestinian rights is critical to any future negotiations. “One of the key lessons learned is that it's a mistake to engage in a problematic process that is not defined well in terms of outcome – what it is supposed to lead to if it is not based particularly from our point of view, or on recognition of our national rights as a people? Because so far, we have gotten none of that.”

He added, “I, like many Palestinians, would find it reasonable to engage in a process that could take us there in agreement and through negotiation.”

Fayyad said that if Palestinians' interests and those of all countries in the region are ultimately to live in peace and sustainable harmony, then the process must be recalibrated. “It has to be more principled.”

Asymmetry and Conflict History

Fayyad said that asymmetry exists between Palestinians and Israelis. “You see this everywhere, in terms of power relations, you see it everywhere, all facets of life. You see it on college campuses; you see it everywhere.”

For example, he said that Israel, over 75 years, has built a strong, vibrant economy with a strong military. “So, to deny people (Palestinians) the right to self-determination, which is a right that is absolute for us under international law, just like any other people anywhere in the world,” is asymmetrical.

He noted, “It is equally important, if not more important, for us Palestinians to understand that just because we are the weaker party in this balance of power … that we must actively assume full agency in the act of our liberation. We must.”

During the conversation, Diamond told Fayyad, “Everything you've talked about was challenging enough on Oct. 6.” But, he asked, how have the last seven months after a devastating terrorist attack affected everything, including the war in Gaza that has leveled much of the physical infrastructure of the country? “Where do we go from here?”

Fayyad described Oct. 7 as a “major shock” that has made a solution more difficult and distant than it already was. He added that Israel’s response to eliminate Hamas is likely impossible to extremely unlikely.

A Sisyphean Task

Our freedom is an inalienable right, Fayyad said about the Palestinian people, and it's an inseparable component of them as human beings. 

“As human beings and members of the human race, like everyone, we have that to share with everyone else. You have to have that kind of recalibration.”

Future conversations between Palestinians and Israelis have to begin from the recognition that two equal parties exist to this disagreement, he said. “Not the oppressor, not the oppressed, not the master and the slave. Not the master and the surrogate.”

Fayyad compared the Palestinian-Israeli conflict to a Sisyphean task of sorts. 

“But I never really understood Sisyphus to be an exercise in futility myself,” he said. “You learn something every time that boulder rolls back on. It's really about empowerment. That’s why it is most inspiring to try it. Even if you fail, even if you know you’re going to fail, you learn from it, you learn from it, and you keep pushing that boulder up the hill. There will come a point in time when the stars align for that which is just.”

The Program on Arab Reform and Democracy at the Center on Democracy, Development and the Rule of Law at Stanford University examines the different social and political dynamics within Arab countries and the evolution of their political systems, focusing on the prospects, conditions, and possible pathways for democratic reform in the region.