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April 29, 2016

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China to regulate overseas NGOs

FROM January 1 next year, overseas NGOs will have to seek police approval before they can operate on the Chinese mainland, according to a new law adopted yesterday.

This applies whether they are planning to open permanent offices or operate temporarily.

The Ministry of Public Security and provincial police departments will be responsible for registration and regulation.

NGOs which want to operate temporarily will have to work with Chinese partners and file programs with the ministry or police departments.

NGOs have to meet several criteria to set up offices on the mainland. For example, they must have been legally founded outside the mainland, be able to bear civil liability independently and operate for at least two years.

Foundations and social service organizations operated by overseas NGOs, which are already registered with the civil affairs department, will be able to continue operating, according to Xu Xianming, deputy head of the National People’s Congress’ Law Committee.

The new law states that overseas NGOs on the mainland shall not undermine the country’s unity, security or ethnic solidarity nor harm the interests of the state, public or the legal rights of citizens and other groups.

They will be banned from engaging in or sponsoring commercial and political activities or illegally engaging in or sponsoring religious activities.

According to the new law, governments at all levels will be obligated to accommodate the legal operation of overseas NGOs, providing necessary assistance and services. NGOs will also enjoy preferential tax policies.

Although all NGOs founded outside the mainland are subject to the new law, exchanges and cooperation between Chinese and overseas colleges, hospitals and science and engineering research institutes will follow existing regulations.

Provisions in the original draft that limited offices on the mainland to one, and imposed a five-year operational limit on representative offices, have been removed.

Restrictions on staff and volunteers are removed but tougher rules have been imposed on finances including the source of funding, expenses and revenue. Financial reports will be audited and published.

Overseas NGOs will be supervised by police and other government departments related to the NGOs’ programs.

The law allows police to interview chief representatives and senior executives if they are suspected of breaking the law.

Police can also ask Chinese partners to terminate a cooperation program if it is considered to undermine state security.

NGOs will have their registration certificates withdrawn if they are found stealing state secrets, spreading rumors, sponsoring political activities or any other activity that harms state security and interests. Staff responsible for offenses may face detention or criminal prosecution.




 

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