Amendment aims to protect their legal rights, interests

A draft law would relax restrictions on the establishment of branches by overseas non-governmental organizations (NGOs), as China's top legislature reviewed it for a second time on Monday.

The draft states overseas NGOs are banned from setting up branches in China unless the State Council has other regulations. It originally banned overseas NGOs from setting up branches in China.

The law is meant to regulate the activities of overseas NGOs in China, protecting their legal rights and interests and promote exchanges and cooperation between Chinese and foreigners.

The Xinhua News Agency reported that the amendment was proposed after taking into account some important overseas NGOs on science and technology research which already have branches in China.

China supports "important" overseas NGOs setting up headquarters and branches in the country, it added.

Mao Shoulong, a professor at the Renmin University of China, told the Global Times that the amendment is an "important step" as there is now a way for overseas NGOs to apply to enter the Chinese mainland.

The draft law was first read by the Standing Committee of the National People's Congress (NPC) in December 2014. It required NGOs to register with and be approved by Chinese authorities if they want to set up representative offices or hold activities in the country.

The amendment decided that overseas NGOs which want to hold activities in China can entrust the Chinese unit they work with to finish registration and application procedures, while the registration authority uses an online platform to provide details of procedures for reference.

It also said the activities of overseas NGOs that conform with the law will be protected, while any civil servant who abuses power, fails to do his or her duty during NGO management will be punished according to the law.

Deng Guosheng, director of the NGO Research Center at Tsinghua University, previously told the Global Times that the law will help provide the NGOs with legitimacy in fund-raising and running projects, as some had a political agenda that have harmed China by inciting mass incidents or conducted illegal activities such as fraud.

Chen Zhu, vice chairman of the NPC, previously said that it is necessary to set up a law. Meanwhile, it is also important to differentiate friendly NGOs from those with a political agenda, reported the Hong Kong-based Phoenix Weekly.

According to a report released in May 2014 by a newspaper sponsored by the Chinese Academy of Social Sciences, there are around 1,000 overseas NGOs in China. That number could reach 4,000 to 6,000 when NGOs conducting short-term projects are included.

China currently regulates overseas organizations based on two rules on the management of foreign commerce chambers and foreign foundations.