{"id":18777,"date":"2015-06-23T11:24:03","date_gmt":"2015-06-23T15:24:03","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=18777"},"modified":"2015-06-23T11:24:03","modified_gmt":"2015-06-23T15:24:03","slug":"in-progress-substantial-legal-changes-for-foreign-charities-working-in-china","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2015\/06\/23\/in-progress-substantial-legal-changes-for-foreign-charities-working-in-china\/","title":{"rendered":"In Progress: Substantial legal changes for foreign charities working in China"},"content":{"rendered":"

Authored by Nevena Urosevic, Associate Director of Legal Affairs<\/em><\/p>\n

In early May, the Chinese legislature released the second draft of its new proposed law on the operation of foreign NGOs[1]<\/a> in China, the first of its kind. The \u201cOverseas NGO Management Law\u201d[2]<\/a> would essentially govern the management of overseas NGOs, which include charities,[3]<\/a>\u00a0 and would drastically change how foreign charities work in China.<\/p>\n

The purpose of the new legislation is to standardize and provide a clear legal framework for activities carried out by overseas NGOs[4]<\/a> within China.<\/p>\n

In order to conduct activities within China, overseas NGOs must apply to the relevant Public Security department before<\/u> <\/em>commencing any such activities. They may either apply to:<\/p>\n

    \n
  1. Become a legally registered representative office; or<\/em><\/li>\n
  2. Obtain a temporary activity permit.<\/li>\n<\/ol>\n

    Prior to applying for registration or a temporary activity permit, overseas NGO will be required to obtain the consent of the local Professional Supervisory Unit.<\/p>\n

    The following chart sets out the requirements and particularities of both methods of operation in further detail:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
    Procedural Step<\/strong><\/td>\nRegistered Representative Office (\u201cRRO\u201d)<\/strong><\/td>\nTemporary Activity Permit (\u201cTAP\u201d)<\/strong><\/td>\n<\/tr>\n
    Pre-registration consent<\/td>\nBoth must obtain the consent of the local Professional Supervisory Unit (\u201cPSU\u201d)<\/td>\n<\/tr>\n
    Application\/Registration<\/td>\nBoth must apply to the relevant\/local Public Security department (\u201cregistration management office\u201d) within 30 days of receiving approval from the PSU<\/td>\n<\/tr>\n
    Decision rendered<\/td>\nWithin 60 days of receiving application<\/td>\nWithin 30 days of receiving application<\/td>\n<\/tr>\n
    Duration of registered status<\/td>\nMaximum of 5 years<\/td>\nMaximum of 1 year<\/td>\n<\/tr>\n
    Renewal of registration<\/td>\n1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Approval from PSU<\/p>\n

    2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 New application to the registration management office within 60 days before the expiration of the existing registration<\/td>\n

    		 <\/td>\n<\/tr>\n
    Activity Plan<\/td>\nActivity plan detailing project descriptions and how funding will be used must be submitted yearly before November 30<\/td>\nBefore commencing a project, registration documents, TAP, and a description of the project to be submitted to municipal and higher level public security authorities<\/td>\n<\/tr>\n
    Fundraising<\/td>\nBoth are prohibited from conducting fundraising activities or accepting donations in China<\/td>\n<\/tr>\n
    Bank Account<\/td>\nMust use the bank account that was filed with registration management authorities to handle money inside China<\/td>\nMust use their Chinese partner organization\u2019s bank account to handle funds in China [an independent account record should be kept, and the money used as agree upon]<\/td>\n<\/tr>\n
    Employment<\/td>\nTo recruit staff or volunteers in China, an RRO must commission a local foreign affairs service unit to carry out their employment matters. Overseas personnel must not account for more than 50% of the total number of staff employed at a RRO.<\/td>\nRecruitment of volunteers to be done through their Chinese partner organization.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    This chart gives only a brief overview of the numerous stipulations and rules that charities must follow if they wish to operate in China. It is interesting to note that the entity responsible for regulating and overseeing charities is the Public Security department. The law also specifies that:<\/p>\n

    \u201cOverseas NGOs that conduct activities in China shall operate according to Chinese laws; not threaten China\u2019s security or national and ethnic unity; must not harm China\u2019s national interest, societal public interests, or the legal rights of other groups and citizens; and must not disrupt public order and morality. Furthermore overseas NGOs must not engage in or fund for-profit activities or political activities. They also must not illegally conduct or fund religious activities.\u201d[5]<\/strong><\/a><\/em><\/p>\n

    The law also provides for a wide discretion in the mechanisms that will be used to monitor charities and supervise their activities. The law provides for a wide range of sanctions if a charity fails to fulfill its duties under the law, or is suspected thereof. Such sanctions include:<\/p>\n