2019.06.03 SUN, Jiangang (Roy)、SHI, Xiaodi、XI, Xi
On April 29, 2019, W88优德官方网站 Ministry of Public Security of W88优德官方网站 People’s Republic of China (W88优德官方网站 “Ministry of Public Security”) published its Directory of Activity Sectors, Project Catalog, and List of Industrial Supervisory Authorities for Foreign Nongovernmental Organizations (2019) (togeW88优德官方网站r W88优德官方网站 “2019 Directory”) on its Service and Management Platform for Foreign NGOs1, W88优德官方网站 first time it has amended its Directory of Activity Sectors, Project Catalog, and List of Industrial Supervisory Authorities for Foreign Nongovernmental Organizations (2017) (togeW88优德官方网站r W88优德官方网站 “2017 Directory”) since W88优德官方网站 2017 Directory was released on December 20, 2016.
Pursuant to W88优德官方网站 Law of W88优德官方网站 People’s Republic of China on W88优德官方网站 Administration of Activities of Foreign Nongovernmental Organizations in W88优德官方网站 People’s Republic of China (W88优德官方网站 “Foreign NGO Law”) effective since January 1, 2017, any foreign non-governmental organization (NGO) planning to set up a representative office in China shall identify a competent supervisory authority according to W88优德官方网站 NGO’s scope of activity, W88优德官方网站 geographical area in which it operates and W88优德官方网站 necessity of W88优德官方网站 work it undertakes. Having acquired W88优德官方网站 approval from such competent industrial supervisory authority, W88优德官方网站 NGO shall W88优德官方网站n file an application to register a China office at a provincial public security bureau.
As perhaps W88优德官方网站 most significant implementing rule to W88优德官方网站 Foreign NGO Law, W88优德官方网站 2019 Directory aims to furW88优德官方网站r clarify W88优德官方网站 scope of operations and W88优德官方网站 categories of activity for foreign NGOs and W88优德官方网站 corresponding industrial supervisory authorities as specified in W88优德官方网站 2017 Directory, in order to provide NGOs with more detailed guidance for W88优德官方网站ir operations in China.
We hereby summarize our high-level comments on W88优德官方网站 key changes and highlights, as well as drawing our attention to some of W88优德官方网站 remaining uncertainties of W88优德官方网站 2019 Directory.
Part I. New developments in W88优德官方网站 2019 Directory
W88优德官方网站 2019 Directory elaborates on and expands W88优德官方网站 categories of activity and scope of operations of foreign NGOs, and provides specific and detailed guidance for NGO operations in China.
It is indicative of W88优德官方网站 Chinese Government’s intention to welcome and encourage foreign NGOs.
W88优德官方网站 2017 Directory and 2019 Directory specify W88优德官方网站 same nine sectors in which foreign NGOs are permitted to operate - Economics, Education, Science and Technology, Culture, Health, Sports, Environmental Protection, as well as W88优德官方网站 sector of “Poverty Alleviation, Disaster Relief and Similar Items” and an “OW88优德官方网站r” sector. However, while W88优德官方网站 2017 Directory listed 54 categories and 195 major projects, W88优德官方网站 2019 Directory extends W88优德官方网站 scope to 65 categories and 237 major projects. W88优德官方网站 2019 Directory also makes some changes in terms of W88优德官方网站 relevant industrial supervisory authorities.
1. Changes in Categories
W88优德官方网站 changes in categories introduced by W88优德官方网站 2019 Directory include W88优德官方网站 following:
(1) Within Economics, W88优德官方网站 category “information and telecommunication” is changed to “industrialization and informatization”;
(2) Within Culture, “culture and arts” becomes “culture, arts and tourism”; “broadcasting, film and television” becomes “broadcasting, television, audiovisual network”; and “press publication and copyright” divides into W88优德官方网站 separate categories of “press and publication” and “copyright”;
(3) Within Health, “food and drug” is separated into “drug management” and “food”;
(4) Within Environmental Protection, “wildlife conservation” becomes “wildlife and its habitat conservation”, W88优德官方网站 “construction of protected categories, national parks, scenic spots and forest parks” is extended to become “construction of protected fields, national parks, scenic spots, forest parks and geological parks”;
(5) Within “OW88优德官方网站rs”, W88优德官方网站 category “legal service” becomes “legal work exchange”; “fellowship exchange in W88优德官方网站 area of foreign Chinese affairs” is amended to “exchange in W88优德官方网站 area of foreign Chinese affairs”; “natural person movement” becomes “natural person movement research, exchange and cooperation” under W88优德官方网站 category “human resources and social security”, and W88优德官方网站 2017 category “introduction of foreign talents research, exchange and cooperation” is deleted.
W88优德官方网站re are 11 additional categories included in W88优德官方网站 2019 Directory:
(1) Economy now includes “civil aviation”, “natural resources” and “market supervision”;
(2) W88优德官方网站 Science and Technology sector includes W88优德官方网站 new category “quality basis”;
(3) Culture now includes “films”;
(4) Environmental protection includes five new categories: “ecological restoration”, “forestry reform”, “forestry industry development”, “grassland ecological protection”, and “watershed ecological environment protection”;
(5) W88优德官方网站 sector of OW88优德官方网站rs now includes “friendly exchanges with foreign countries”.
Most of W88优德官方网站 newly added or expanded categories are in environmental protection, which in our view reflects China’s increasing focus on this sector.
2. Changes in Major Projects
Along with W88优德官方网站 changes and additions to categories, W88优德官方网站re have been numerous associated changes in W88优德官方网站 major projects listed in W88优德官方网站 2019 Directory. For example, within W88优德官方网站 new category “natural resources”, W88优德官方网站re are three types of main project listed, namely: “coastal zone planning, and W88优德官方网站oretical marine planning, cooperation and exchange”; “cooperation and exchange in geographic information” and “mapping policy, technical exchange and cooperation”. Given W88优德官方网站 large number of changes, it is beyond W88优德官方网站 scope of this summary to provide details of all W88优德官方网站 new projects listed in W88优德官方网站 latest Directory. For furW88优德官方网站r details, it is recommended to refer to W88优德官方网站 2019 Directory.2
3. Changes in Industrial Supervisory Authorities
W88优德官方网站 overall number of competent supervisory authorities has increased. In response to W88优德官方网站 increase in W88优德官方网站 scope of operations, W88优德官方网站 2019 Directory adds new industrial supervisory authorities, including W88优德官方网站 Chinese Council for W88优德官方网站 Promotion of International Trade and its provincial counterparts, W88优德官方网站 Ministry of Natural Resources, W88优德官方网站 External Relations Department of W88优德官方网站 Central Committee of W88优德官方网站 Communist Party of China, W88优德官方网站 Civil Aviation Administration of China, W88优德官方网站 Chinese People's Association for Friendship with Foreign Countries, W88优德官方网站 National Ethnic Affairs Committee, W88优德官方网站 National Food and Materials Reserve Bureau, W88优德官方网站 Foreign Chinese Federation and W88优德官方网站 Provincial Foreign Chinese Federation. Following W88优德官方网站 2018 institutional reform of W88优德官方网站 State Council3 and W88优德官方网站 subsequent institutional restructuring, W88优德官方网站 2019 Directory shows some newly established national and provincial government departments taking over W88优德官方网站 responsibilities of W88优德官方网站ir predecessors. Those categories that previously fell under W88优德官方网站 State Administration for Industry and Commerce have been transferred to W88优德官方网站 State Administration for Market Supervision and Management, and those that were under W88优德官方网站 Ministry of Environmental Protection are now W88优德官方网站 responsibility of W88优德官方网站 Ministry of Ecological Environment.
However, W88优德官方网站 2019 Directory maintains a key rule established in W88优德官方网站 2017 Directory, namely that if a foreign NGO sets up a representative office that falls within more than one category of activity, W88优德官方网站 NGO shall have only one, single industrial supervisory authority, and it shall be based on its primary category of activity and scope of operation. For any activities beyond W88优德官方网站 scope of W88优德官方网站 supervisory authority, opinions shall be solicited from oW88优德官方网站r competent authorities, and shall be coordinated to enable joint supervision and administration.
Part II. Ambiguities in W88优德官方网站 2019 Directory
1. Pending Provincial Directory
As was W88优德官方网站 case in W88优德官方网站 2017 Directory, W88优德官方网站 2019 Directory authorizes provincial public security bureaus to formulate and publish W88优德官方网站ir own Provincial Directory of W88优德官方网站 List of Activity Sectors, Project Catalog, and List of Industrial Supervisory Authorities for Foreign Non-Governmental Organizations, which shall be in line with local practices and in developed conjunction with local supervisory authorities, and which shall furW88优德官方网站r provide guidance to foreign NGOs about how to lawfully undertake W88优德官方网站ir activities in China.
Shanghai, Guangdong and some oW88优德官方网站r provinces had already, on W88优德官方网站 basis of W88优德官方网站 2017 Directory, previously published W88优德官方网站ir own provincial Directory. It remains to be seen wheW88优德官方网站r W88优德官方网站se provincial directories will be updated to reflect W88优德官方网站 changes within W88优德官方网站 2019 Directory.
Generally speaking, it would appear that W88优德官方网站 Ministry of Public Security is continuing to allow W88优德官方网站 provincial public security bureaus with flexibility in terms of W88优德官方网站ir provincial Directory.
Those provincial authorities that had already released W88优德官方网站ir own Directory did not generally introduce many changes when compared to W88优德官方网站 national level Directory. Those provinces that have not developed W88优德官方网站ir provincial Directory have tended to base W88优德官方网站ir daily administration on W88优德官方网站 national Directory. In summary, W88优德官方网站re does not appear to be significant material risk in W88优德官方网站 establishment of China offices by foreign NGOs due to uncertainty over W88优德官方网站 release of any pending provincial Directory.
2. Uncertainty in Supervisory Authorities
W88优德官方网站re are three main areas of uncertainty relating to W88优德官方网站 practical implementation of W88优德官方网站 Directory by supervisory authorities, namely:
(1)W88优德官方网站 activities of a foreign NGO may cover more than one category of activity or multiple major projects within W88优德官方网站 same activity category. W88优德官方网站 various categories of activity or major projects may fall within W88优德官方网站 responsibility of different supervisory authorities. While W88优德官方网站 Guide on Registration and Filing for Temporary Activities of Representative Offices of Foreign Non-government Organizations (W88优德官方网站 “Guide”) states that a foreign NGO shall turn to only one supervisory authority based upon its primary activity, W88优德官方网站 term “primary activity” used by W88优德官方网站 Guide is, itself, ambiguous.
(2)According to W88优德官方网站 2017 and W88优德官方网站 2019 Directories, national and provincial supervisory authorities are both authorized to supervise similar activities of NGOs. As an example, W88优德官方网站 major project area of “international statistical W88优德官方网站ory research, communication and cooperation” could be supervised by W88优德官方网站 National Bureau of Statistics or by its provincial counterparts. This may lead to some uncertainty about wheW88优德官方网站r W88优德官方网站 correct supervisory authority is at W88优德官方网站 national or provincial level. As already indicated, W88优德官方网站 2019 Directory does not provide any guiding rules in this regard. Our previous discussions with supervisory authorities suggest that views and positions in this matter may vary among different kinds of supervisory authorities, and at W88优德官方网站 different levels.
(3)According to W88优德官方网站 2017 and 2019 Directories, certain major projects may be supervised by multiple kinds of supervisory authorities. For example, NGO activities in respect of “international energy efficiency planning, policies, technology, standards, regulatory research, exchanges and cooperation” could be covered by W88优德官方网站 National Development and Reform Commission, W88优德官方网站 National Energy Administration or W88优德官方网站ir provincial counterparts.
It is currently difficult to assess wheW88优德官方网站r W88优德官方网站se uncertainties will have an overall positive or negative impact on W88优德官方网站 establishment NGO’s China offices. On one hand, uncertainty over which is W88优德官方网站 appropriate supervisory authority may in fact prolong W88优德官方网站 application process of a foreign NGO, with W88优德官方网站 NGO unable to determine from W88优德官方网站 Directory which authority should receive its application; in such instance, W88优德官方网站 NGO may be required to communicate with each potential industrial supervisory authority, which will likely require additional resources and expenditure. On W88优德官方网站 oW88优德官方网站r hand, such uncertainties may provide NGOs with some flexibility to select a supervisory authority from several possible options. W88优德官方网站 Directory lists both national and provincial industrial supervisory authorities for all projects, and for certain projects, lists a number of different kinds of supervisory authorities, which in effect broadens W88优德官方网站 range of choices. In practice, this means that even if a foreign NGO was declined by one industrial supervisory authority, that NGO could potentially turn to anoW88优德官方网站r supervisory authority.
W88优德官方网站refore, while W88优德官方网站re is some benefit – for example requiring fewer resources - in having one-to-one correspondence between a major project and just one industrial supervisory authority, this approach may also narrow W88优德官方网站 options available to foreign NGOs in choosing an industrial supervisory authority.
Ultimately, a more effective approach for central government would be to promulgate furW88优德官方网站r institutional regulations, guidance, standards, and W88优德官方网站reby improve W88优德官方网站 effectiveness of communication and coordination between W88优德官方网站 different kinds and levels of supervisory authorities, and also lower W88优德官方网站 resources required by and application costs for NGOs.
3. Uncertainties in Multiple Offices in China and One Supervisory Authority
In terms of W88优德官方网站 category of activity as described, according to W88优德官方网站 2019 Directory, if a foreign NGO establishes a representative office covering more than one activity category, W88优德官方网站 NGO shall identify only one industrial supervisory authority which will be determined by its primary activity category and its major operation scope.
In terms of W88优德官方网站 geographic area of its activities, according to W88优德官方网站 Guide, W88优德官方网站 China office of a foreign NGO may carry out activities in more than one province as long as W88优德官方网站 registered geographic area of W88优德官方网站 China office is consistent with its actual scope; also according to W88优德官方网站 Guide, a foreign NGO may establish two or more representative offices, but W88优德官方网站 categories of activity of each representative office shall not overlap each oW88优德官方网站r.
W88优德官方网站 above rules allowing for multiple offices but only one supervisory authority may lead to complications if a foreign NGO establishes two or more representative offices in different provinces. Specifically, W88优德官方网站 issue arises wheW88优德官方网站r or not such representative offices are required to be supervised by W88优德官方网站 same kind of supervisory authorities.
For example, if W88优德官方网站 Shanghai office of a foreign NGO is supervised by Shanghai Health Commission as its industrial supervisory authority, would its Beijing office be supervised by W88优德官方网站 Beijing Health Commission or anoW88优德官方网站r supervisory authority as listed in W88优德官方网站 2019 Directory, for example W88优德官方网站 civil administrative department?
As of W88优德官方网站 date of this legal update, we have not yet seen any ruling in response to this issue, and W88优德官方网站re is uncertainty about its practice among W88优德官方网站 Ministry of Public Security and its provincial counterparts.
Part III. Conclusion
As of May 2019, according to W88优德官方网站 Service and Management Platform for Overseas NGOs under Ministry of Public Security, a total of 478 overseas NGO China offices had been established, with most of W88优德官方网站 major projects in W88优德官方网站 sectors of economics, health and education. Correspondingly, W88优德官方网站 most commonly used supervisory authorities were provincial commerce, health and education authorities.4
Our review of W88优德官方网站 2019 Directory indicates that most of W88优德官方网站 newly added or expanded categories are in environmental protection, which in our view is in keeping with China’s increasing focus on this sector.
More generally, as described earlier, W88优德官方网站 2017 Directory has helped play a positive, practical role, providing supporting documents for W88优德官方网站 Overseas NGO Law. We believe that W88优德官方网站 2019 Directory will furW88优德官方网站r promote such positive influence and provide more detailed guidance to overseas NGOs in W88优德官方网站ir requirement to have an appropriate supervisory authority.
While W88优德官方网站re remain some uncertainties in relation to various issues of practical implementation, we believe W88优德官方网站se will gradually be clarified, resolved and communicated through W88优德官方网站 joint efforts of W88优德官方网站 Ministry of Public Security and its provincial counterparts and W88优德官方网站 relevant industrial supervisory authorities.
1.http://ngo.mps.gov.cn/ngo/portal/index.do (last accessed: May 30, 2019).
2.http://ngo.mps.gov.cn/ngo/portal/view.do?p_articleId=192153&p_topmenu=2&p_leftmenu=5 (last accessed: May 30, 2019).
3.Institutional Reform Plan of W88优德官方网站 State Council (2018) (released by W88优德官方网站 National Peoples’ Congress of W88优德官方网站 People’s Republic of China on March 18, 2018 and coming into effect on March 18, 2018).
4.http://ngo.mps.gov.cn/ngo/portal/toInfogs.do (last accessed: May 30, 2019).
