On January 16, 2015, the magazine China Briefing reported that a new Charity Law, which has been in the drafting stage for months has finally been introduced as a bill in the National People’s Congress (NPC). The establishment of laws governing social organizations (NGOs) has long been rumored and hoped for in China, by domestic and foreign enterprises alike. Many Christian organizations are hopeful that a new law will make it easier for them to operate in China. Here’s what the article has to say about the draft law:
China has been drafting a new version of its Charity Law that will significantly impact upon the manner in which foreign charities and NGOs operate in the country. The new law, the drafting of which has been in the pipeline for several years now, is understood to now be in bill format and was introduced to the NPC last month. This new draft makes significant improvements and clarifications on previous attempts, reflecting a more pragmatic approach to the status of charitable organizations by the Chinese State.
The draft includes recommendations from the Chinese Ministry of Public Security, Ministry of Civil Affairs, and crucially, guidance from the State Administration of Taxation for charity certification and determination of tax status for charities. Previously, applications from charities for legal status in China were extremely difficult to obtain due to conflicts within the registration system, notably with systematic problems taxing not-for-profit entities.
Will this law actually make it out of the National People’s Congress and be enacted? It will certainly be something to watch for when the Congress meets in Beijing in March.
If you are interested in brushing up on the NGO sector in China, I highly recommend the following sources:
Council on Foundations
An excellent overview of the current situation regarding NGOs in China.
NGO Law Monitor – China
Everything that you wanted to know about China NGOs but were afraid to ask.
Image Credit: China floods 2010 – Oxfam humanitarian relief by Oxfam International, on Flickr
