After two reviews of the draft “law on administration of overseas non-governmental organizations” respectively in December 2014 and April 2015, Chinese legislative authorities have published the full text of the draft law to solicit opinions from the general public.
The draft legislation has attracted broad attention from all walks of life, and received many suggestions for its improvement. A number of overseas NGOs, including the Kissinger Institute, have written to us, inquiring about specific implications of some stipulations in the draft.
Let me first explain why China decided to make such a law.
At the end of 1978, China decided to adopt the reform and opening up strategy, and to promote rule of law. Through 30-odd years’ endeavors, we have formulated a socialist legal system with Chinese characteristics by 2010, with a complete set of legislations covering major aspects of state affairs and social life. We have 244 laws currently in effect.
Meanwhile, we are keenly aware that our lawmaking has left blanks in some other aspects. All-round promotion of the rule of law entails continuous perfection of the legal system. Regarding the regulation of social organizations, we now have several administrative decrees in place, such as “Regulations on Registration and Administration of Social Organizations”, “Regulations on Administration of Foundations”, and “Provisional Regulations on Registration and Administration of Non-Governmental Non-Enterprise Institutions”.
However, we are keenly aware that there is no uniform legislation to regulate overseas NGOs’ activities in China. In recent years, many overseas NGOs have complained to us about the ambiguity over what they can do in China. They have expressed the hope that China makes a corresponding law, drawing clear legal boundaries for their activities in the country, and protecting their activities under the law. Thousands of overseas NGOs are reportedly operating in China. Thanks to the absence of uniform rules, however, only more than 700 have undergone registration. Among which more than 150 have registered with civil affairs departments, and more than 630 have registered with industry and commerce administration authorities.
China has seen tremendous achievements in economic development and social progress over more than three decades — not only the main fruit of reforms, but also closely related to our policy of opening up. While drafting the law on overseas NGOs, we have persistently adhered to the policies of opening up in a bid to provide a fairer and more clearly defined environment for the operation of overseas NGOs through legislation, and to facilitate their activities in China.
Since last year, Chinese legislative authorities have been soliciting public opinions from all walks of life in order to refine the draft. For examples, on June 4 and July 25, we held two symposiums to solicit opinions and suggestions from representatives of such overseas NGOs as Beijing office of China Medical Board (United States), Beijing office of The Energy Foundation (United States), and the representative office of Smile Train (United States). During the symposiums, we explained the concrete implications of major clauses of the draft law at their requests. Through such interactions, they said their previous fears were satisfied, and they expressed support for making such a law.
According to China’s Law on Legislation, the making of a new law usually entails three reviews by legislative authorities. At present, we are carefully studying and sorting out the various proposals and suggestions for improving the draft law, including those from concerned overseas institutions and individuals. We will continue to listen to opinions from all sides so as to further improve it. Chinese legislative authorities are surely capable of coming up with a law that is both in the best interests of the Chinese people, and conducive to overseas NGOs’ friendly exchanges and cooperation in China.
Following are my replies to some of the most asked questions regarding the draft law.
1. The draft law’s definition of overseas NGOs
According to article 2 of the draft law, an overseas NGO refers to a non-profit, non-governmental social organization that is founded outside of Chinese territories. To be specific, this definition refers to non-governmental institutions, mainly including foundations, academic societies, associations, chambers of commerce, etc.
2. The draft law’s definition of “political activities”
The draft stipulates that overseas NGOs must not engage in or finance political activities. The most important content of “politics” is state power. Under Chinese Election Law, citizens who participate in elections must not directly or indirectly accept any form of election-related financial support from overseas institutions, organizations, or individuals. To be frank, overseas NGOs can do whatever they want as long as they don’t interfere with or sabotage our political power.
3. Implication of the stipulation that representative offices of overseas NGOs are not qualified as legal persons
The Kissinger Institute wrote to us, inquiring: If the representative offices overseas NGOs set up in China don’t qualify as legal persons, will they be protected by Chinese laws?
The original meaning of this clause is that, overseas NGOs may set up representative offices in China, which don’t qualify as legal persons; they may also establish such social organizations as foundations that qualify as legal persons in China, and register with Chinese civil affairs authorities. Any overseas NGOs, be they representative offices or such social organizations as foundations that qualify as Chinese legal persons, will be protected by Chinese laws, as long as they operate in accordance with Chinese laws.
4. Regarding the practice of dual administration over the activities of overseas NGOs in China
The draft law stipulates that, in order to set up representative offices or carry out activities in China, overseas NGOs shall seek approval by corresponding authorities, and register with authorities in charge of registration. Such a mode is generally known as “dual administration”.
According to existing Chinese laws and administrative decrees, social institutions in China are all subject to dual administration; they shall not come into operation without approval by corresponding authorities and proper registration. The stipulation of the draft law is consistent with such a practice. It is conducive to operational guidance for as well as registration and administration of the operation of overseas NGOs in China, regulation of their activities in the country in accordance with law, and the protection of their legitimate rights and interests.
In order to help overseas NGOs with relevant procedures, the draft also obligates authorities responsible for registration administration and other concerned agencies to compile lists of fields of operation and projects, and issue a roster of corresponding government offices.
5. To what extent can Chinese legislative authorities take outsider advice
We keep listening to opinions of all concerned parties in order to improve the draft. In such a process, we will seriously consider all suggestions and proposals received, including those from overseas NGOs. As to what the ultimate stipulations would be like in a national law, we will have to wait until after the final decision of the National People’s Congress Standing Committee through democratic voting.
I would like to reiterate what we have always been stating: As always, we will consistently welcome and support overseas NGOs to operate in China in accordance with law, we will strive to provide a fine legal environment as well as more convenience for overseas NGOs to conduct friendly exchanges and cooperation in our country.