Dame Susan Rice chaired the second panel on Middle Powers and Sovereignty: Redefining Influence Through Energy, Defence and Technology with Henri-Paul Rousseau, Québec’s Delegate General in Paris, Pauline Wood, Head of Inward Investment, UK Government Department for Business, Innovation, Science and Trade and Stanislas de Kertanguy, Head of ESG, LBO France.
As geopolitical competition between the United States and China intensifies, middle powers face growing pressure to strengthen their strategic autonomy while maintaining the international partnerships on which their economies depend. The discussion explored how cooperation between like-minded countries, particularly through trade, industrial policy and investment, could create the collective scale needed to exercise greater influence in an increasingly fragmented global order.
A central theme was that sovereignty does not require self-sufficiency. Rather, it depends on understanding strategic dependencies, diversifying supply chains and investing in capabilities across energy, defence and technology. The panel examined how resilience is becoming an increasingly important consideration for investors, even where it involves higher costs or longer investment horizons. Effective regulation, trusted partnerships and closer alignment between public policy and private capital were identified as essential to translating strategic ambitions into investable opportunities.
Exploring the Discussion
As geopolitical competition intensifies between the US and China, middle powers are reassessing how they can protect their interests and exercise greater influence. The discussion explored the potential for cooperation between like-minded countries to create a meaningful collective voice in international trade, industrial policy and investment. Rather than replacing existing global relationships, such partnerships could provide greater flexibility and reduce excessive dependence on any single major power.
Sovereignty does not require countries to produce everything domestically. Instead, strategic autonomy depends on identifying critical dependencies, diversifying supply chains and developing complementary capabilities through trusted partnerships. Energy security, technological capacity and defence preparedness are increasingly interconnected. Greater use of technology, transparency and traceability in international trade could also help countries manage dependencies without abandoning the benefits of globalisation.
Industrial strategy is becoming an increasingly important instrument for strengthening national capabilities and attracting investment. The discussion considered how cooperation between governments, businesses and investors can support innovation and competitiveness in strategic sectors. UK-France partnerships illustrated the potential for bilateral cooperation to reinforce industrial capacity and resilience. However, regulatory frameworks and strategic ambitions must be supported by practical investment opportunities, technological capabilities and access to capital.
The growing importance of resilience raises questions about how investors assess long-term value. Investments that improve energy security, maintain critical infrastructure or reduce resource dependence may create significant strategic benefits without necessarily generating immediate financial returns. The discussion explored how public-private cooperation, long-term investment and appropriate policy frameworks can help bridge this gap. Strategic autonomy requires balancing efficiency with resilience and determining how the additional costs of security should be financed.
Key takeaways
Sovereignty Through Cooperation
Strategic autonomy is not about self-sufficiency. Middle powers can strengthen their influence by managing dependencies, diversifying supply chains and building trusted international partnerships.
Industrial Strategy as a Strategic Tool
Investment in energy, defence and technology capabilities must be supported by coherent industrial policies, effective regulation and closer cooperation between governments and private capital.
Making Resilience Investable
Greater security and resilience may require higher costs or longer investment horizons, challenging conventional approaches to assessing financial returns and long-term value.
Collective Influence in a Fragmented World
Middle powers can exercise greater geopolitical and economic influence by combining complementary capabilities and strengthening trade, investment and technological partnerships.