Dentons US LLP
03/04/2021 | News release | Distributed by Public on 03/04/2021 02:32
The Foreign NGO Law and its implementation – Legal Path for Foreign NGOs in China
March 4, 2021
Foreign NGOs have been gradually operating in China since China opened up in early 1980s, and reached a peak after China's accession to the WTO in 2001. Before the Administrative Law on Activities of Overseas NGO within Mainland China (the 'Foreign NGO Law') became effective on 1 January 2017, the law related to foreign NGOs were scattered in multiple regulations, and most foreign NGOs operate in China in the form of affiliation ('Gua Kao'), for-profit company registration, or non-registration. By the end of 2016, the official Chinese source stated that there are at least more than 7,000 foreign NGOs working in China.
The Foreign NGO Law has been implemented for 4 years now. There are 576 foreign NGO representative offices successfully registered and 3254 temporary activities filed as of as of 1 January 2020. The number of successful registration and filings substantially reduced comparing to 2016 official statistics. Moreover, almost half of the registered offices are trade related, such as chamber of commerce of different countries, which is not a typical area for foreign NGOs.
This paper analyzes the application of the Foreign NGO Law in practice in order to help foreign NGOs assess the best legal approach to their current and future work in China.