Académique Documents
Professionnel Documents
Culture Documents
Authored By
Lester Ross, Partner, WilmerHale and US-China Strong Foundation Senior Advisor
Liu Ting Ting, Associate, WilmerHall
June 14, 2016
Following the April 28, 2016 passage of Chinas new Foreign NGO Activities
Management Law, the US-China Strong Foundation is pleased to publish a White Paper.
The intent of this document is to provide more information about the provisions of the
new law and implications for foreign NGOs, specifically academic institutions,
operating in China. The US-China Strong Foundation is grateful for the strategic
guidance received from members of its Academic Advisory Council and Senior
Advisors, especially Mr. Lester Ross, one of the authors of this White Paper. By
enhancing understanding of this new law, it is our hope that academic exchange and
other forms of people-to-people interactions will increase and result in a more robust
and constructive future US-China relationship.
Introduction
The Foreign Non-Governmental Organizations Activities Management Law (the Law) was
adopted at the 20th meeting of the Standing Committee of the 12th National Peoples Congress on
April 28, 2016.1 The Law will take effect on January 1, 2017. It is somewhat narrower in scope
than last years draft and addresses some earlier criticism. The Law exempts professional
exchanges and cooperation involving foreign schools, hospitals and natural science and
engineering research institutions, but not with respect to other activities by such entities in China.
The Law requires foreign NGOs engaging in activities in China to do so either through (i)
registered representative offices operating under the supervision of approved professional
(business) supervisory units () (PSUs) or (ii) registration of activities of a
temporary nature with Chinese cooperation units (CCUs) that agree to serve as sponsors. The
Ministry of Public Security or local public security department is the registrar in both cases. The
Law also prohibits membership recruitment and fund raising by foreign NGOs in China.
The key provisions of the Law and their implications for foreign NGOs and their activities in
China are addressed below.
See National Peoples Congress of the Peoples Republic of China, The State has published Foreign NGO Law,
(April 28, 2016), available at http://www.npc.gov.cn/npc/xinwen/2016-04/29/content_1988782.htm. The full text
of the Law is available at http://finance.ifeng.com/a/20160429/14354046_0.shtml. A Wolters Kluwer translation is
attached.
See State Council, Regulations on Chinese Foreign Cooperation in Operating Schools (March 1, 2003), available
at http://www.moe.edu.cn/publicfiles/business/htmlfiles/moe/moe_861/200506/8644.html; Ministry of Education,
Implementation Measures of Regulations on Chinese Foreign Cooperation in Operating Schools (June 2, 2004),
available at http://www.jincao.com/fa/04/law04.61.htm.
Note, however, that the restriction to one office and cap on the number of foreign employees have been deleted
from the last years published draft.
The registration for the record procedure is simpler and less prone to discretion than the permit procedure specified
in last years published draft.
Article 22 also requires that foreign NGOs with representative offices manage the funds which
they use in China through the representative offices bank accounts. It is unclear if funds not
directed to representative office operations, e.g., research grants and stipends, must be funded
through such offices which are unlikely to have robust financial staffs.
Foreign NGOs that carry out temporary activities are required to deposit the funds for their use in
China through separate bank accounts of their CCUs. This may present major legal as well as
practical concerns, such as how to control funding and ensure compliance with the U.S. Foreign
Corrupt Practices Act, and how to plan at least 15 days in advance which in practice will take
longer when application preparation time is taken into account. It is moreover unclear whether
each discrete activity, including for example attendance by faculty at academic conferences or
the conduct of research projects, will require a separate temporary activity registration.
See State Council, Regulations on the Administration of Foundations (March 8, 2004), available at
http://www.cecc.gov/resources/legal-provisions/regulations-on-the-management-of-foundations-chinese-text.