Tuesday May 10 2016

News Source: Global Disclosures

Focus: Foreign Investment

Type: General

Country: China




China’s National People’s Congress (NPC), Standing Committee, has adopted a new law regulating the activities of Non-governmental Organisations (NGOs) from outside the Chinese mainland.

The People’s Republic of China’s Law on the Management of the Activities of Overseas NGOs within Mainland China is set to come into effect on 01 January 2017, and is intended to provide foreign NGOs with assistance, and greater scrutiny over their activities.

The law will require foreign NGOs to secure approval from The Ministry of Public Security and provincial Police Departments, who will assist with registration process, prior to operating on the Chinese mainland.

Chapter 2 of the new law outlines the registration process and as per Article 12, overseas NGO’s will be required to register a representative office with the registration management authorities within 30 days of formally identifying and obtaining approval from a Professional Supervisory Unit.

The representative office of an overseas NGO will be required to submit an annual work report to the Professional Supervisory Unit before 31 January each year. The Professional Supervisory Unit will be required to provide feedback to the registration management authorities by 31 March for annual inspection. The annual work report is required to include an audited accounting report and descriptions of the activities and changes in staff or in the organisational structure.

Article 9 of Chapter 2 of the new law, states that foreign NGOs wishing to operate temporarily will have to work with their Chinese partners, and file their programmes with the MPS or the provincial police departments.

Article 47 of Chapter 6, of the new law provides for punishment against any foreign NGO which undermines China’s unity, security, ethnic solidarity or the interests of the state, and requires the management authorities to begin criminal charges against persons directly responsible for the infringements(s). Article 48 imposes a 5 year ban upon overseas NGOs that have been deregistered or have conducted activities without obtaining the necessary registrations. Any NGO found in breach of the new law will be banned from engaging in or sponsoring commercial, political and religious activities.

The new law grants authority to the police to interview chief representatives and senior executives if they are suspected of breaching the new law, and where it is determined that their activities undermine state security, police can ask their Chines partners to terminate the cooperation programme they are undertaking with the NGO.

Please click on the link above for further details (Unofficial English translation).