A forum on energy conservation and innovation hosted by the World Wide Fund for Nature is held in Beijing on April 27 (CFP) 

Regulating the activities of overseas non-governmental organizations (NGOs) by law is a universal practice in the international community. To better regulate their activities in China and promote their healthy development, the Chinese Government recently enacted the Law on the Management of the Activities of Overseas NGOs. However, some people, organizations and even Western governments that regard China with a jaundiced eye have accused Beijing of curbing NGO activities through the new law. This allegation has caused misunderstanding over the law both at home and abroad.

Analyzing these accusations and criticism, it is easy to see that they stem from misunderstandings about China or are based on prejudice. If the critics were to take an objective attitude when analyzing the contents of the law, they would understand that it is not aimed at suppressing overseas NGOs but at promoting their healthy development in China.

To begin with, the law has ended a dearth in legal system of the administration of overseas NGOs operating in China.

This is the first time that China has passed a law to regulate overseas NGOs operating in China. Though there were some rules in the Interim Provisions for the Administration of Foreign Chambers of Commerce in China, issued in 1989, as well as in the Regulation on Foundation Administration, adopted in 2004, referring to the management of overseas NGOs, administering their activities was not officially included in China's legal system.

Due to the lack of a clear and unified law, many problems emerged for overseas NGOs operating in China. There were mismanagement of human resources, chaotic use of funds and opaque operations. Some overseas NGOs did not even register with the government while working in China.

Currently, there are around 1,000 foreign-based NGOs operating in China. That number could reach 7,000 if NGOs running short-term projects were included. With the rapid growth of such NGOs, the nation was in urgent need of a law to end the absence of a legal system to administer them. China is making efforts to promote its national strategy of law-based governance. Regulating overseas NGOs' activities within China according to law is part of that strategy.

Guo Shengkun, Minister of Public Security, said that the new law is a measure both to promote China's law-based governance and to guide and regulate overseas NGOs' activities in China. According to Xu Xianming, deputy head of the Law Committee of the National People's Congress, the law will provide clear and unified regulations for overseas NGOs active in China.

Now the law is passed, there is more space for overseas NGOs' healthy development in China.

Legal protection

The positive role many overseas NGOs have played in China's development has been welcomed by the Chinese Government. China has seen overseas NGOs coming to the country in increasing numbers since reforms started and the opening-up policy was implemented. The NGOs have brought capital, technology and management experience that have been conducive to China's development.

The law stipulates that overseas NGOs with legal activities in China will be protected. Relevant government departments shall provide policy advice and activities guidance to them in accordance with the law. Thus, the law is an important measure to legally protect overseas NGOs' activities in China. As long as their activities are legal and conducive to China's development, the NGOs won't be restrained or prohibited but will be protected by law.

In interviews with U.S. media, President Xi Jinping said China attaches importance to the service and administration of non-profit overseas organizations in the country as well as to regulating their activities in China according to law to safeguard their rights. These organizations should follow Chinese laws and conduct their activities in the country in an orderly way.

This shows the Chinese Government welcomes all overseas NGOs willing to work legitimately in China. The law is to remind all overseas NGOs desirous of operating in the country that they must observe Chinese laws and conduct their work accordingly. The law will promote overseas NGOs' participation in the development of China's economic, social, cultural, and ecological fields legitimately, in an orderly way, and more frequently. It will also advance China's foreign exchanges and cooperation, deepen foreign countries' understanding of China, and push forward the peace and development of China and the world at large.

Preventing illegal work

No matter what kind of overseas NGO, it is a common principle that they must observe the law of the country where they operate. In the past decades, though most overseas NGOs played a positive role in promoting social progress in China, there were still some problems. Ignoring the relevant Chinese laws, some overseas NGOs engaged in political activities in China which had nothing to do with their professed objectives. Some even colluded with anti-social elements to launch "color revolution" campaigns and undermine China's national security and damage its national interests.

Statistics from Hong Kong media show that hundreds of overseas NGOs are engaging in political activities in China. If they are not well regulated, they will-certainly pose a bigger threat to China's national security. The overall image of overseas NGOs operating in China may then be damaged, and their overall development in China may be affected. It would be unfair to the NGOs conducting legal activities in China.

For all these reasons, Guo stressed that all overseas NGOs should observe China's laws when conducting activities in the country and operate within the sphere permitted by the law.

Finally, passing laws on overseas NGOs is also a prevailing international practice, and China's doing so is in the context of, and in line with, its promotion of a comprehensive rule of law.

Many countries have passed laws regulating overseas NGOs' activities. It is a universal trend. Russia will pass a new law on May 24 banning overseas NGOs that engage in activities that violate Russia's constitution or undermine its national security. In 2012, Russia passed a law requiring all overseas NGOs engaging in political activities in Russia to be registered as "foreign agencies."

Indian media have reported that in April, about 9,000 NGO licenses were suspended, as their activities did not conform to Indian laws and regulations. Many of them were from overseas. It should be noted that India has included the Ford Foundation, a U.S. NGO, in its national security monitoring list. Every donation the foundation makes to local organizations in India needs the Indian Government's approval first. India has also suspended the license of the Indian branch of Greenpeace and frozen its bank account.

These facts show that regulating overseas NGOs according to local laws is a common practice and the future trend in the international community. Managing overseas NGOs' activities according to law is a basic requirement and bottom line of a sovereign country. China is no different.

The author is a research fellow with the Chinese Academy of Social Sciences

Copyedited by Sudeshna Sarkar 

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