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.
 

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