President Xi Jinping’s tenure has been marked by growing state influence over all spheres of governance in China, including a marked tightening of control over the economy.

Curtis Milhaupt, the William F. Baxter-Visa International Professor of Law at Stanford Law School, addressed the hardening of Party controls over Chinese corporate governance. His lecture to the China Program on February 6 was based on research conducted by Milhaupt in collaboration with Yu-Hsin Lin of City University of Hong Kong, and examined the expanding role of the Chinese Communist Party (CCP) within both state-owned enterprises (SOEs) and privately-owned enterprises (POEs). The influence of the CCP within these enterprises, Milhaupt says, is not as straightforward as it might seem.

Milhaupt posits that the level of control exercised by the CCP on SOEs is lower than one might generally expect. At the same time, the CCP exercises a surprisingly higher level of control over POEs than we would typically assume. To draw these conclusions, Milhaupt uses a set of ten model provisions deemed to be dangjian, or “party-building,” measures that were developed and released by the Central Committee of the CCP. From data compiled between 2015 and 2018 from the charters of publicly-listed companies, Milhaupt shows that 10% of SOEs chose not to adopt any of the provisions distributed by the Central Committee. Meanwhile, 6% of POEs had at least a low level of adoption, despite the fact that the provisions were not directed at them. The reason for such variation, according to Milhaupt, can be explained by the characteristics of the provisions, the SOEs, and the POEs.

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Which enterprises adopted which provisions was highly correlated to those enterprises’ characteristics. SOEs were far more likely to amend their charters if they had direct state shareholding, but less likely to amend if they had large non-state shareholders, were further down in the state-ownership chain, or were cross-listed on international stock exchanges. POEs followed a similar structure, with enterprises being more likely to adopt provisions the more politically connected they were or the more direct state shareholding they had.

It remains unclear how the government can actually enforce the dangjian policy, and how these policies will affect the enterprises that adopt it. Despite the official rhetoric behind the dangjian policy, with claims that greater loyalty to the Party will lead to more economic success, Milhaupt expresses doubts:

“What’s [the danajian policy] going to mean for firm performance? Certainly, from a . . . straightforward economics or corporate governance perspective, one would not be optimistic that infiltrating corporations with political influence is going to do good things for firm performance.”

Milhaupt also has concerns about how the strategy will impact international investment, noting the already high levels of suspicion surrounding Chinese motivations: “This [emphasis on loyalty to the Party] would certainly seem to add fuel to the fire, and heighten concerns or suspicions with respect to Chinese outbound economic activity.” As SOEs and POEs continue to navigate both domestic and international markets with their amended charters, the future feasibility of the CCP’s reassertions over the economy is far from certain.

For the first time in the history of the Leonard M. Rieser Award, the Bulletin of Atomic Scientists gave an honorable mention. The honor goes to Ivan Andriushin, Cecilia Eiroa-Lledo, Patricia Schuster, and Evgenii Varseev for their essay “Nuclear power and global climate change.”  (Photo is of the authors.)

This essay, written by an a team of two Russian and two American young researchers sprung from a collaboration under the umbrella of the U.S.-Russia Young Professionals Nuclear Forum (YPNF), a project established by CISAC’s Siegfried Hecker to encourage dialogue on critical nuclear issues between the younger generations of nuclear engineers and scholars in the US and Russia.

The essay that received the Rieser honorable mention was one of a series of articles born out of the YPNF program. “Their articles are of interest because they represent the views of some of the younger generation of professionals working together across cultural and disciplinary divides,” said Hecker.  “We were particularly struck by the following comment in their essay reflects on the perceived urgency of the task at hand: ‘We are the first generation that is experiencing the dramatic effects of global climate change and likely the last that can do something about it.” 

Since its first meeting in 2016, the YPNF meets alternatively in Moscow and Stanford, with its agenda designed to promote an open-minded approach to consideration of technical and political challenges presented by the use of nuclear power in energy production and in the military realm. The participants represent not only two different countries, each a world leader in nuclear scholarship, research, and technology expertise, but also a range of disciplines from nuclear engineering to particle physics to international relations to anthropology. 

On the 4th YPNF in Moscow in November 2018, one forum exercise was on The Future of Global Nuclear Power. It was designed to have the young professionals take a close look at the benefits and challenges facing nuclear power globally and to examine and debate the role that nuclear power should play globally in this century. The backdrop for the discussion was the trend of the declining share of electricity produced by nuclear power plants in the world electricity. In the past few years, it dropped to only 11% of global electricity in spite of increasing concerns about the impact of burning fossil fuels on global climate change. This exercise was the start of the winning essay.

Read the Rest at Bulletin of Atomic Scientists

The sixth Young Professional Nuclear Forum (YPNF6), sponsored by the Center for International Security and Cooperation at Stanford University and the Moscow Engineering and Physics Institute (MEPhI), was held at MEPhI, Moscow, on November 4-7, 2019.

The mission of the forums is to foster collaboration between young professionals from Russia and the United States in the nuclear power and nonproliferation fields. The forum allows them to discuss and evaluate pressing global nuclear issues during times that the two governments are not cooperating and are not in serious dialogue. In recent years, the two governments have severely restricted opportunities and venues that previously used to be open to experienced nuclear professionals on both sides to cooperate with each other.  The benefits of nuclear cooperation were clearly demonstrated in hundreds of mutually beneficial collaborative projects by Russian and American nuclear professionals during the breakup of the Soviet Union and in the 20-plus years that followed.

These forums allow Stanford University and MEPhI to prepare the next generation to help rejuvenate cooperation once the governments realize that cooperation in the nuclear arena is essential. The young professionals participating in these meetings are upper level undergraduates, graduate students, postdocs, young faculty and junior specialists. They are the new generation who will be stepping in to solve the mounting challenges including nuclear security, nonproliferation, nuclear disarmament and how to mitigate the effects of climate change and toxic pollution of the planet.

The November 2019 meeting included two and a half days of lectures and group work on two exercises – one on a “World free of nuclear weapons” and the second on “The impact of nuclear accidents on the future of nuclear power.”

Most young professionals acknowledged – or came to realize – the enormity and complexity of Nuclear Zero as both a study area and a goal. At the same time, many noted that this very complexity provoked deeper thinking and the discussion opened new perspectives, especially for those on the engineering side. The young professionals also realized that they share more common ground on the issue of Global Zero than one might have thought.

The feedback on the nuclear accidents exercise also showed several notable takeaways. The aspects that appealed to the young professionals were: the comparative approach that pushed them to look beyond the known facts into similarities and specifics across the three accident cases; a perspective that integrated the technical, social, and cultural angles; and such examination being directly relevant to improved safety of nuclear energy, the objective close to heart to many of them who see their future as nuclear professionals.

It is also interesting that in this exercise the young professionals noted differences of perspective and opinion rather than similarities. As has been the case in all previous forums, these differences were valued and accepted as leading to a richer, more productive, discussions.

Their reports were sufficiently impressive that we have decided to follow the model of YPNF4 and have the young professionals turn the six short articles to be published in the Bulletin of the Atomic Scientists. We have the go-ahead from the editor of the Bulletin.

In addition to the working sessions, the forum provided the opportunity for personal interaction and connections. The young professionals rated their overall satisfaction of the meeting as 8.6 out of 10 expressed a strong preference to stay engaged between the forums working on collaborative projects.

On the whole, the response to the 6^th YPNF seems to show a growing engagement and sense of ownership by the young professionals on both sides. The forum presented various opportunities for the young professionals to learn about issues, each other, and each other’s countries. Young professionals approached many of the senior experts individually with questions both within and beyond the Forum discussion areas and exchanged contacts for future interaction.

The forum was supported by MEPhI, the Carnegie Corporation of New York and the MacArthur Foundation.

After decades of inaction and stalemate, there are small but significant signs that the U.S. government may finally be ready to meet its legal commitment to manage and dispose of the more than 80,000 metric tons of used nuclear fuel at 74 operating and shut-down commercial nuclear reactors sites in 35 states across the country. The signs of progress include:

• Only a few weeks ago, the House Energy and Commerce Committee approved bipartisan legislation to authorize the storage of used fuel at an NRC-licensed interim storage facility and provide funding for the development of a long-term repository.
• Similar legislation has had hearings and is pending in the Senate, and less than a week after the House committee action Sen. John Barrasso (R-Wyo.) introduced a parallel bill to the House legislation and called on his colleagues for bipartisan support.
• A comparable bill passed the House in the previous Congress by a vote of 340-72.
• Congressional leadership on this issue includes Sens. Lamar Alexander (R-Tenn.) and Dianne Feinstein (D-Calif.) in the Senate, as well as highly motivated members in the House.
• The Trump administration’s last two budget proposals included funding for a spent fuel interim storage site, in addition to funding for Yucca Mountain. 
• Two private entities have filed license applications with the Nuclear Regulatory Commission (NRC) to construct and operate consolidated interim storage facilities, and the NRC is moving forward to process these applications.

These actions reflect an increasing recognition that the management and disposal of used nuclear fuel is an issue that need to be addressed, particularly if nuclear power is going to have a role in the reduction of greenhouse gas emissions.

Read the Rest at The Hill

Americans show much less tolerance for war crimes than they did during the war in Vietnam.

Read the Rest at Washington Post

Interview with Colin Kahl

In May 2018, President Trump withdrew the United States from the Iran nuclear deal, and re-imposed crippling economic sanctions against Tehran. Iran responded by restarting elements of its nuclear program and sponsoring militant attacks against US interests and allies in the Middle East. Trump claims he will keep the pressure on until Iran agrees to a better nuclear deal, while Iranian leaders insist they will not negotiate under duress. Colin Kahl, Steven C. Házy senior fellow at the Freeman Spogli Institute for International Studies' Center for International Security and Cooperation and former national security advisor to the vice president of the United States, speaks with WorldAffairs CEO Jane Wales about Trump's Iran strategy and how it risks igniting war with the country.

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