New law will create barriers for foreign NGOs in China

Subject

A new law on foreign NGOs.

Significance

The National People's Congress last month released the second draft of the Foreign NGO Management Law online for public comment. The law's stated purpose is to establish and standardise procedures for foreign non-governmental organisations (NGOs) carrying out activities in China. It covers non-profit and non-governmental organisations working in all areas, which include the economic, educational, science, technology, health, cultural, recreational, environmental protection and charitable sectors. The law is expected to go through a third reading and be promulgated before the end of 2015.

Impacts

• The broad definition of NGO means the law will affect foundations, school groups and universities collaborating with counterparts in China.
• The more resource-intensive and lengthy process for foreign NGOs to establish operations in China will raise entry barriers.
• The law will also affect domestic NGOs by limiting their access to foreign resources and funding.