On 28th April 2015, “The Law of the People's Republic of China on the Administration of Domestic Activities of Overseas Non-governmental Organizations” (hereinafter referred as the Overseas NGO Law) was passed by the standing committee of NPC and will take effect on 1st Jan 2017. Shanghai Dongjin concluded some points for this new law as follows.

Q1: Why the Chinese government will strengthen the management on the overseas NGOs?

A1: Some NGOs harmed the social stability and national security in China and make the illegal activities or even breach the laws.

Q2: What is the purpose for this new law?

A2: The purpose is to regulate the overseas NGOs activities in China and make them in order. Further, this new regulation will be the legal basis if the overseas NGOs involve in any illegal activities in China.

Q3: Why the public security should be responsible for the establishment for the overseas NGOs?

A3: The public security has the wide experience on the maintenance the national security and social stability. Further, the public security is responsible for the management on the household, nationality, immigration matters as well as the foreigner’s affair in China. The Chinese government give power the public security as well as push them to provide the better service to the overseas NGOs.

Q4: What kind of overseas NGOs are welcome to take activities in China?

A4: The overseas NGOs are welcome for the development of public welfare in such industry as the economy, education, science, healthcare, culture, sports and environment protection and helping the poor person as well as the disaster relief.

Q5: Why it is prohibited for the overseas NGOs involving in the fund raising activities?

A5: The overseas NGOs are non-legal person in China and only for short-term purpose. According to the P.R.C. Charity Law, it cannot be taken as the charity organization which can make the fund raising activities.

Q6: Why it is prohibited for the overseas NGOs set up branches in China or developing members?

A6: The former limitation for the overseas NGOs set up only one Representative Office is cancelled in the new law. The overseas NGOs can set up several ROs in different areas directly and there is no need for it to set up branches. Furthermore, for the former branches as that for the overseas schools/hospitals/nature science or engineering institutions in China, it is still admitted to exist.

On the other hand, the overseas NGOs are permitted to conduct the activities for short-term purpose with the Chinese party (no longer than 1 year but still need to be recorded at the local authority).

Considering that the overseas NGOs are non-legal person in China and only for short-term purpose, it is no need to strong their team for the development the members.

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com