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China's New Foreign NGO Registration Law Affects Thousands of Overseas Groups

| Apr 29, 2016 09:52 PM EDT

The 200 wealthiest members of the National People's Congress and Chinese People's Political Consultative Congress (CPPCC) have an accumulated wealth of around $507 billion.

A new Chinese law set to regulate over 7,000 foreign non-governmental organizations and their local counterparts is President Xi Jinping’s latest move to limit Western influence in the country.

According to the New York Times, more than 7,000 NGOs will be affected by the new law, which now requires foreign non-governmental groups to look for an official Chinese sponsor and register with local law enforcement agencies before they can operate in China.

Among the affected organizations are those involved in civic, philanthropic, environmental and cultural issues as well as those under the education and business sectors.

CRIEnglish stated that NGOs that have already received approval from the civil affairs department will be allowed to continue operations, while exchange programs involving hospitals, colleges and science and engineering research institutes abroad are exempted from the new rule.

However, those with declined applications will be forced to stop operations, while those who do pass the initial screening will undergo stern scrutiny especially when it comes to funding sources, expenses and revenue.

The provision that limits the organizations to a single office in China as stated in the original draft of the NGO law has been removed upon the final reading.

The United States expressed its concern on the new legislation, as reported by the AFP posted in the Global Post.

"The United States is deeply concerned that China's new Law on the Management of Foreign NGO Activities will further narrow space for civil society in China," said Ned Price, a spokesperson from the U.S. National Security Council.

In the statement, Price urged China to upholding "the rights and freedoms of human rights defenders, journalists, business groups, development professionals, and all others who make up civil society, including by protecting the ability of foreign NGOs to operate in China."

According to the report, the law does not clearly define what a "foreign NGO" is, but there is a great chance that it would include charities and business associations founded abroad.

Because of this, even the U.S.-China Business Council is expressing its sentiments on the new law, with Jake Parker, the vice president for China operations, taking the stage.

"Our initial reaction is disappointment that the public security agencies in China are going to be managing the registration process for NGOs," Parker said.

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